​A will is an important document most people don’t want to think about, but it’s crucial to have in place to protect your assets and ensure your loved ones receive what you want them to.
It can be wise to have a lawyer write up the documents in your will to keep everything legally sound and eliminate any confusion. Before approaching a lawyer and putting pen to paper, think through the items below. Keep in mind your will won’t come together in a day because it can take time to make these critical decisions.
 
Financial assets
Unless you explicitly specify who it should go to, your money will most likely go to the state. To prevent this, account for every penny. Make sure to cover all your accounts and investments. Speak with your financial advisor and have them compile a thorough list of your financial assets so you don’t forget anything. Here are examples of what to cover in your will:

• Checking accounts
• Certificates of deposit
• Cash value life insurance
• Medical savings accounts
• Retirement accounts, including employer plans
• Savings accounts
• Taxable investment accounts

Property
Real estate can be tricky to outline in a will. Property isn’t as cut-and-dry as a trail of financial assets. Some people have multiple property investments or multiple beneficiaries, which can complicate the equation. The more specific you are in the will, the less likely it will be there are complications in your absence. Here are questions to ask your lawyer about including real estate in your will. Be aware that state laws can vary on this topic.

• If my property isn’t going to a spouse, who can it legally go to?
• How should the proceeds of my home sale be distributed between multiple heirs?
• What if one of my heirs wants to retain the property as a residence?
• Can I assign different percentages of the property to multiple beneficiaries?
• How will my outstanding debts affect this process?

 
Debts
Managing outstanding debts after a death of can cause a lot of anxiety, but it doesn’t have to be that way. First, debts are not always the legal obligation of your heirs. Oftentimes the proceeds from an estate sale will go toward paying off your debts first. Here is a helpful breakdown of what kind of debt will still need to be paid off and what will go away upon your death. Work with your financial advisor to pay off outstanding debt so that your estate sale proceeds can go directly to your beneficiaries.

• Auto loans: Your vehicle will be sold if there are outstanding loan payments. Otherwise, the lender reserves the right to seize the vehicle until the loan is paid off by next of kin or an outlined beneficiary.
• Credit cards: Debt will be paid out of an estate sale prior to the distribution of assets.
• Student loans: Federal loans are discharged upon death, but private loans will need to be paid out by the estate.
• Mortgages: If your property is worth less than the amount left on your loan, your heirs will work out a short sale agreement with the lender, otherwise the property goes into foreclosure. However, if an heir chooses to reside in the home, they may be allowed to take over your remaining mortgage payments.

Personal possessions
Most people think about large items, such as financial assets and property, but don’t forget about your personal possessions. Take inventory of your jewelry, furniture, and other items that you want to be left to a loved one. It’s important to do so because your assets could be taken and auctioned to repay your debt unless you specify who you want them to be left to. Have any high-value items appraised if you want the proceeds from the sale of your possessions to go to someone specific.

Executor or witness
An executor of a will is the person you choose to administer your estate. They do not need to be a beneficiary, just someone who can take care of your estate after you die. This is not the same as a power of attorney, which is someone who can take care of your estate while you are alive if you become unable to care for yourself. It’s often advised that you name someone with no personal interest in the matter, such as an estate planning attorney.
If you choose to write your own will, which is not often advised, you will need someone present to witness you signing and agreeing that the document is correct. Be sure to research the law in your state because some states do not allow heirs to be witnesses.

Documents
Alongside your will, you should keep these important pieces of paper handy and accessible for your executor so that they can more easily access your accounts and assets.

• A list of utility companies, phone companies, and other service providers you use with the corresponding account number
• An updated list of financial institutions, lenders, bank account numbers, and insurance contracts
• Copies of recent financial statements
• Legal agreements, such as leases, divorce decrees, and private loan agreements
• Social Security and pension award letters
• Tax returns for the last five to ten years

 
No one wants to think about drafting a will, but it’s important to be proactive so you can rest assured that everything will be handled properly in your absence.
 
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
This article was prepared by ReminderMedia.
LPL Tracking #1-05366689

The thought of retiring may be intimidating for anyone—but if you own your own business, handing your "baby" to new owners might be enough to stop you in your tracks. What might you do to set your successor up for success? What should all business owners know before they go?
 
Set Specific Retirement Goals
When you retire, you want to be running to something—not from something. And after years of operating your business, moving to a slower-paced, less-structured lifestyle might seem very appealing.
However, you probably need some structure, and setting specific goals may be the way to get there. For example, you may decide you want to spend more time on your hobbies. Instead of letting that wish stagnate, you might make a point to set aside a day or two each week to devote to your hobbies.
 
Plan to Turn Your Business Over
One of the biggest potential dangers during a business transition is failing to cut the cord when warranted. If the business founder/seller remains overly involved in the business, this might stifle growth and send mixed messages about who is in charge. Though there is nothing wrong with staying close for a few years to answer questions, once you exit, it is probably wiser if it is clean. Make—and stick to—a succession plan to manage complications.
 
Set Up Your Support Team
Adjusting to retired life may be tough, especially if you also wind down your involvement in a business. You may need a strong team of professionals—retirement, tax, legal, and possibly others—to help you stay on track and manage any financial trouble. Working with financial professionals may help ease the transition to retirement, even if you do not require the services of all these financial professionals every year.
 
Ensure Your Savings are on Track
Many business owners re-invested their retirement assets back into their businesses. This strategy might make retirement tricky, especially if these assets need extraction first. This example gives a good reason for adequate diversification of non-business retirement savings. Your portfolio might benefit from sufficient diversity by holding growth and value investments. If you have the financial capacity to contribute to a Roth IRA, this type of retirement account may be a good way to manage taxes on income and growth on all invested assets.

​Important Disclosures
 
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
 
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
 
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
 
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax-free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
 
This article was prepared by WriterAccess.


LPL Tracking #1-05361931

Small businesses may often find themselves struggling, and there are many situations in which business owners may find themselves weathering a storm and hoping to make it through. While the strength and fortitude of those who run small businesses can be an asset in helping them succeed when times are rough, there are a few strategies that can make survival a little easier.

Reduce Costs Strategically
When things start to go awry, one of the first things most business owners look for is ways to cut down on expenses to improve cash flow. Unlike widespread significant cuts that large corporations often employ, small businesses must be more strategic with their trimming. For example, if you cut your staff down too drastically, you may find your company spread so thin that you are not able to recover. Likewise, if the cuts are too minor, they may not be enough to make a difference. Take time to make a well-researched analysis of how proposed cuts can affect your business in the present and the future.

Find Low-Cost Marketing Solutions
Even when times are tough, you need to continue to promote your company so that you are able to keep your current customers and try to obtain more, which can help increase your cash flow. The good news is that marketing your business is still possible even with a small budget. Put your company’s focus on types of marketing that may have a low initial cost and a higher return rate. Content marketing and social media marketing are great ways to draw in new business and get your name in front of potential customers without spending a lot upfront.2

Expand Your Network
When times are tough for your business, they are likely hard for other businesses as well. There is strength in numbers, and connecting with other companies or industries may be the answer to some of your problems. You could cross-promote your business with other peers that provide complementary services, recommend each other's businesses, or see if there are other ways for you to help each other out.

​Don't Dwell on Past Mistakes
When things start to go wrong, it is easy to get caught up in past mistakes. Dwelling on the past may make you continue to replay issues and situations that you believe brought you to the current point in your business. This may leave you wondering how the outcome would be if you had changed something. Unfortunately, the past is not able to be changed, and living with regret may prevent you from pushing forward and doing what you need to keep your business afloat.

Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking #1-05361929
Footnotes:1”The Small Business Hard Times Survival Guide,” Live About https://www.liveabout.com/the-small-business-hard-times-survival-guide-2951407
2A 10-Point Small-Business Survival Plan for Dealing With the Coronavirus, Entrepreneur, https://www.entrepreneur.com/living/a-10-point-small-business-survival-plan-for-dealing-with/347913

​Overview: In the language of life insurance, a beneficiary is the recipient of the policy’s proceeds when the named insured dies. The owner of a life insurance policy has a great deal of flexibility in naming beneficiaries and, generally, can name anyone as beneficiary. The most important considerations in naming beneficiaries are making sure that the wishes of the policyowner are fulfilled and that legal complications are avoided.
 
How much do you know about life insurance beneficiary arrangements?
Test your knowledge with this short quiz.
 

1. True or False. Generally, a contingent (or secondary) beneficiary is entitled to the policy proceeds if the primary beneficiary has predeceased the insured.

 

1. True or False. Per capita means “branches of the family,” and per stirpes means “by heads.”

 

1. True or False. If a beneficiary designation is irrevocable, the policyowner reserves the right to change the beneficiary.

 
 
 
Read here to learn more about life insurance beneficiary designations.Beneficiaries are typically categorized as primary and contingent. A primary beneficiary is entitled to the proceeds of the policy upon the death of the insured, but such rights expire if he or she dies before the insured. A contingent (or secondary) beneficiary is entitled to the policy proceeds if the primary beneficiary has predeceased the insured. One fairly common arrangement might stipulate that, if policy proceeds are being paid over time to a primary beneficiary who dies before collecting the entire amount, the remaining proceeds will be payable to the contingent beneficiary. It is often desirable to have several levels of contingent beneficiaries.
 
A beneficiary can either be specific (a person identified by name and relationship), or a class designation (the naming of a group of individuals such as the “children of the insured”). While the naming of specific beneficiaries is usually clear-cut, unintended complications may arise when designating classes of beneficiaries.
 
For example, if you plan to name your children as beneficiaries, is it your intention to include adopted or stepchildren? If your children are minors, will the insurance company pay the proceeds to a minor beneficiary? (Generally, insurers will insist on paying proceeds to a legal guardian, rather than to a minor.)
 
Consider the following hypothetical situation in which the policyowner’s intentions appear straightforward, but could become complicated. Margaret, who is 70 years old, planned for the proceeds of her life insurance policy to be paid to her children (Dan, Sara, and Marybeth) or her grandchildren. Now, what would happen if Dan and Sara were to die before Margaret, with Dan leaving four children and Sara having no children? How should the proceeds of the policy be distributed when Margaret eventually dies?
 
Per stirpes and per capita are terms that describe methods of distributing property to family members and heirs. Per stirpes means “branches of the family,” and per capita means “by heads.” In the example above, under a per stirpes distribution, Marybeth (one branch) would get one-half of the proceeds and Dan’s surviving children (the other branch) would divide the remaining half among themselves. Under a per capita distribution, Marybeth and Dan’s four children would each receive one-fifth of the proceeds. Remember, there might be complications if any of Dan’s children are still minors when Margaret dies and legal guardians have not been appointed.
 
There are also different consequences to beneficiary designations being revocable or irrevocable. If a beneficiary designation is revocable, the policyowner reserves the right to change the beneficiary. A person designated as a revocable beneficiary has only an “expectation” of benefits, because the owner of the policy can exercise any of the policy rights without the consent of the revocable beneficiary.
 
On the other hand, an irrevocable beneficiary designation cannot be changed without the consent of that beneficiary. While this may sometimes be desirable for estate planning purposes, the legal status of an irrevocable beneficiary is uncertain. One position regards an irrevocable beneficiary as a “co-owner” of the policy; the beneficiary’s consent is needed to exercise any policy rights. At the other extreme of legal opinion is the position that an irrevocable beneficiary’s consent is needed only for exercising a change of beneficiary.
 
The latter position can create the somewhat puzzling effect of having the beneficiary’s rights compromised if the policyowner exercises other rights, such as surrendering the policy or permitting it to lapse. Because of the vague legal status of an irrevocable designation, it is usually preferable to use revocable beneficiary designations. A further complication can arise when one’s estate is named as beneficiary, because the proceeds of the policy can be tied up in the probate process or reduced by the claims of creditors. 
 
These potential pitfalls make it clear that the distribution desired by the owner of a policy should be clearly set forth in the beneficiary designation. Changes in family circumstances after policies are first written (for example, divorce) could leave the policyowner with unintended beneficiaries. Therefore, it is important for insurance policies to be reviewed regularly to help ensure beneficiary arrangements are in concert with the wishes of the policyowner.
 
 
Quiz Answers: 1) True; 2) False; and 3) False.
 
Important Disclosures
Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.
This article was prepared by Liberty Publishing, Inc.
LPL Tracking #1-05258205
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