FINANCIAL FOCUS
KRISTI TREVINO Financial Advisor Edward Jones
Ideas for Thanking Your Family
It ’ s almost Thanksgiving . And although 2020 may
have been a difficult year for you , as it has been for many people , you can probably still find things for which you can be thankful – such as your family . How can you show your appreciation for your loved ones ? Here are a few suggestions :
• Invest in your children ’ s future . If you have young children – or even grandchildren – one of the greatest gifts you can give them is the gift of education . You may want to consider contributing to a higher education funding vehicle .
• Be generous . Do you have older children , just starting out in life ? If so , they could well use a financial gift to help pay off student loans , buy a car or even make a down payment on a home . You can give up to $ 15,000 per year , per recipient , without incurring gift taxes . Of course , you don ’ t have to give cash – you might want to consider presenting your children with shares of stock in companies they like .
• Review your insurance coverage . If you weren ’ t around , it would leave some gaping holes – financial and otherwise – in the lives of your family members . That ’ s why it ’ s essential you maintain adequate life insurance . Your employer might offer a group plan , but it may not be sufficient to meet your needs . There ’ s no magic formula for determining the right amount of coverage , so you ’ ll have to consider a variety of factors : your age , spouse ’ s income , number of children and so on . Also , you may want to consider disability insurance – if you were unable to work for a
while , it could cause a real problem for your family ’ s finances .
• Preserve your financial independence . When your children are young , you take care of them . But you certainly don ’ t want them to have to do the same for you – so it ’ s essential you maintain your financial independence throughout your life . You can do this in at least a couple of ways . First , consider investing regularly in your 401 ( k ), IRA and other retirement accounts . The greater your resources during your retirement years , the less you may ever need to count on your family . And second , you may want to protect yourself from the devastating costs of long-term care , such as an extended nursing home stay . A financial professional can suggest a strategy to help you cope with these expenses .
• Create an estate plan . To leave a legacy to your family , you don ’ t have to be wealthy – but you do need a comprehensive estate plan . You ’ ll have to think through a lot of questions , such as : Have I named beneficiaries for all my assets ? How much do I want to leave to each person ? Do I need to go beyond a simple will to establish an arrangement such as a living trust ? For help in answering all these issues , you ’ ll want to work with an attorney . By making these moves , you can show your loved ones , in a tangible way , how much you value them – and that can help you keep the spirit of Thanksgiving alive all year long .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Edward Jones . Member SIPC .
18 MOMENTUM