A cash infusion from the sale of a business or an inheritance will raise questions about how to invest the money you’ve taken in, as well as tax issues that could result in higher marginal rates or estate taxes.
Similarly, remarriage also raises tax and estate planning issues. For instance, you may want to arrange the plan so that assets are left to a new spouse, or that children from a previous marriage are protected in the event of your death.
Is putting together a financial plan painful? Yes. But it’s a process that can give you peace of mind, helping you find your way through the vicissitudes of everyday living.
Get the Plan Going Whether you choose to do it yourself or have a professional planner do it for you, this list will help you gather all the documents you need to put together your financial plan. Once you’ve got them all in the same place, keep copies in one file so you won’t have to run around looking for them when you need to tweak your plan again.
• Pay stubs, W-2 forms, and tax returns from the previous year • Savings, checking, and credit-card statements • Money market, mutual fund, and brokerage statements • A list of stocks you own that the brokerage doesn’t handle • Homeowner’s, auto, medical, disability, long-term care, and life insurance polices • Mortgage and property tax statements • Your will, living will, and powers of attorney documents • Trust information • 401(k) and IRA statements • Stock option and deferred compensation documents • Pension, profit-sharing, and bonus statements • Business partnership agreements • Contact information for your professional advisors, notably your accountant and lawyer |
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7/2008
“Expect Less, Pay More”Investing during a downturn in the market is unpredictable because we don’t know how low it will go.
