Mark Hansen discusses what he considers the five pillars of a stable financial foundation for six-figure single-income families.
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-mark-hansen-financial-planner-at-second-comma/
Estate planning is an important process that every individual should consider, regardless of age or family status. However, estate planning can be even more crucial for young families with children. In the unfortunate event of unexpected death or incapacity, having a proper estate plan in place can provide peace of mind and help ensure that the loved ones are taken care of.
As a young family, people may think that estate planning is not a priority. However, the reality is that accidents can happen at any time, and being prepared can make a huge difference in protecting assets and providing for a family’s future.
Some reasons why estate planning can be seen as a crucial step for young families to consider are:
- Protecting Assets: Estate planning involves creating a plan for the distribution of assets after death. Without a will, assets may be distributed according to state laws, which may not align with people’s wishes. By creating an estate plan, people can work to ensure that their assets go to the right people and in the way that they want.
- Avoiding Conflict Amongst Family Members: Without a clear estate plan, disagreements and conflicts among family members can arise after passing. This can lead to costly legal battles and strained relationships. Having a proper estate plan in place, can minimize the potential for conflict and ensure that loved ones are taken care of.
- Planning for Incapacity: Estate planning is not just about what happens after death. It also involves planning for potential incapacity, whether due to illness or injury. By creating a power of attorney and healthcare directive, one can appoint someone to make important decisions on people’s behalf in case they are unable to do so.
Here are some tips to help people get started:
- Create a Will: A will is only part of the document that outlines people’s wishes for the distribution of assets after death and other important matters such as appointing a guardian for the children. This can be seen as the first step in any estate planning process.
- Consider Life Insurance: Life insurance can provide financial security for loved ones in case of unexpected death. It is especially important for young families who may have dependents and financial obligations.
- Review and Update Regularly: As a family grows and circumstances change, it is important to review and update the estate plan regularly. This ensures that the plan remains relevant and reflects current wishes. Many estate plans can also include additional verbiage to include any additional assets not specifically named in the estate planning documents themselves. Using a strategy such as this can help ensure nothing gets left out of an estate plan.
- Seek Professional Help: Estate planning can be a complex process, so it is best to seek help from a professional such as an estate planning attorney. If you are working with a financial advisor, it might be a service they offer to attend those meetings with the estate planning attorney. The attorney can provide guidance and ensure that an estate plan is legally sound, and the financial advisor can help ensure all applicable assets are captured in the documents.
Mark explained: “Estate planning can be an essential process for young families to protect the future of their loved ones. Taking the time to create a proper estate plan can help families to have peace of mind knowing that their loved ones will be taken care of according to wishes as written in the estate plan. It is important to review and update the plan regularly and seek professional help if needed. Keeping these tips in mind, people can ensure that their estate plan is comprehensive and effective in providing for their family’s future needs.”
About Mark Hansen
Introducing Mark, the owner at Second Comma, a trusted partner in striving for financial success. Mark helps his clients navigate the complexities of personal finance, ensuring they make informed decisions while working to secure their financial future. By following Mark’s advice, couples work to gain control over their finances, start saving for their dream home, and even plan for their children’s education.
Mark is dedicated to empowering his clients in an effort to transform their financial lives.
Learn more: https://www.second-comma.com/
