4 Planning Approaches to Keep in Mind

You probably know more about your finances than the average person, but it never hurts to revisit a few key ideas as you continue to plan for your best future. 

After all, understanding retirement and estate planning basics can help you and your family stay on track and ask the right questions when needed.

Take a look and reach out if you’d like to discuss anything:

Rebalancing is the process of changing your portfolio’s allocation, such as purchasing more stocks and selling some bonds (or vice versa). This action can help your holdings maintain a level of investment risk that you’re comfortable with. 

An A-B Trust is an estate planning vehicle that can help minimize taxes. It essentially defers the estate tax until the death of both spouses, so that the surviving spouse can use their partner’s assets in full. The beneficiary, in turn, pays tax when the second spouse passes on amounts greater than the amount defined by the IRS.

Per Stirpes refers to a system by which you can pass your wealth to your next living descendant. For example: It establishes a framework where, should your child pass before you, the part of your trust they would have inherited goes to their children (your grandchildren).

Finally, a defined-contribution plan refers to any sort of retirement plan where the employer or the employee (or both) make contributions on a set timetable, such as an employer-matched 401(k). Are you maximizing your opportunities? 

Do you have questions about these terms or anything else related to your finances? Reach out anytime.