This may include your will, your health care directive/directives, and power of attorney paperwork, among other things. The idea is to make things easier for your loved ones; having the right person in the right role can make a big difference in an emergency. Nearly 35% of American adults say they’ve personally experienced family conflict, or know someone who has, because they didn’t have an estate plan in place. Should something happen to you, it’ll also be easier for your loved ones if all your bank and investment accounts list the right person (or persons) as a beneficiary. Also ask if your accounts should include a transfer on death (TOD) or payable on death (POD) designation. People get funny when it comes to money!
7)
As inflation impacted consumers' finances during 2023, some investors may have struggled to make a dent in existing debt or could have incurred new debt. Though the average debt for adults in the U.S. has been steadily declining in recent years, it is important for investors to form a plan to pay off debt, especially as high interest rates persist. Debt in and of itself isn't necessarily a bad thing, debt can allow you to make big purchases you may not be able to buy normally like maybe a house or a car but make certain it’s for the right kind of expense. Really important to look at your budget, any upcoming expenses and manage your cash flow to pay those things off. I believe when you have “free or extra money”, pay off some small debt and then “wash, rinse, repeat”.
8)
Your advisor and accountant should be able to help you to align your charitable giving strategy and charitable contributions with your tax strategy. People often give cash to causes throughout the year but may not keep a record of that contribution or get a receipt…keep a written record and always get a receipt. Depending on your situation, you may be able to deduct more than you realize, and I see many people leaving legitimate deductions on the table.
9)
As part of your goals, ask your financial advisor to help you use your financial power for good and align your investments with your values, if you haven’t already. For example, maybe you’re a sustainability advocate and don’t want to invest in big oil anymore. Or maybe you want to shift more of your investment portfolio into an industry or cause you care about, that’s something your advisor can help with and most times this approach can lead to some promising investments you were not aware of.
10)
Yes, the elephant in the room. Hold your financial advisor accountable! Ask about advisory fees, fund fees (aka expense ratios), advisor loads or commissions, and other investment fees. Top advisors want you to know their fees and, in most cases, must comply with disclosure guidelines in the state they practice in.
These 10 tips you can use to improve your early 2024 conversations with your advisor and get the year off to a strong financial start. There are more that we can discuss throughout the year, but hopefully this gets the financial steam engine rolling.
Richard Chew – 1st Capital Wealth Management Group
605 N. Michigan Avenue,
Suite 400, Chicago, IL, 60611 [email protected] www.1stcig.com 312-835-3800/Direct Line 312-952-8040/cell.