End-of-Summer Checklist: 5 Financial Considerations and Annual Maintenance Reminders

As summer winds down and we gear up for fall, it's an opportune time to review and fine-tune our financial strategies. At Seaside Wealth Management, we believe in proactive planning to help you stay on track with your goals. Here’s a detailed checklist to ensure your financial health is in top shape as we transition into the new season.

Prepare and/or Revise Your Personal Inventories

Creating and maintaining personal inventories is foundational to comprehensive financial planning. We recommend keeping a detailed list of where your financial assets are held, along with the contact information for your business and financial advisors, tax preparers, and estate planning attorneys. This is why we provide the Seaside Portal for your benefit. It’s a great tool to use in order to stay organized and also store your most important financial documents securely.

These items are only as helpful as their most recent update, so regular reviews are essential. As we move into the busy fall season, take some time to refresh these inventories. This not only ensures your family has access to the most current information but also provides them with the clarity and guidance they might need in times of urgency. Think of it as setting up a roadmap that your loved ones can follow with confidence and ease.

Consider a Family Meeting with Your Adult Children

Communication is key, especially when your adult children are named in your estate planning documents. Organizing a family meeting can significantly enhance this transparency. Inform your children about the location of important documents and the contact persons they should reach out to in case of an emergency. Start with basic information, such as where to find things, and gradually move towards more detailed conversations about roles and responsibilities. (link August Newsletter blog about inheritance here)

If you have a family business or foundation, these meetings are invaluable. They help your children understand your intentions and goals, preparing them for future responsibilities. These discussions foster transparency and preparedness, ensuring your wishes are honored and your family feels supported. Moreover, involving your children in these conversations helps them understand the importance of their roles and instills a sense of responsibility and ownership over their future duties.

At Seaside Wealth Management, we have extensive experience conducting family meetings just like this. We are passionate about helping to ensure that your family stays strong and is not ripped apart by arguments over money after your death. Make sure to take advantage of this service we offer.

Ensure Your Adult Children Have Power of Attorney and Advanced Directive Documents in Place

Once your child turns 18, they are legally an adult, which changes your legal rights as a parent. It's vital to have a conversation with your child about the importance of setting up Power of Attorney and Advanced Directive documents. These documents allow you to assist your child in managing their financial and medical decisions, especially in unforeseen circumstances.

If your child moves out of state, consider preparing these documents under the laws of both the home state and the state they’ll spend most of their time in. While this may seem redundant, it can prove invaluable in an emergency, ensuring no delays in decision-making due to jurisdictional issues. Having these documents in place not only provides peace of mind for both you and your child but also ensures that you can provide the necessary support and guidance as they navigate adulthood.

Create or Review 529 Plans for Your Children or Grandchildren

As your family members head back to school, it’s the perfect time to focus on education savings. If you haven’t already, consider setting up 529 plans for your children or grandchildren. These tax-advantaged plans are a powerful tool for funding future education expenses, offering both flexibility and significant tax benefits.

If you have existing accounts, take this time to review them to ensure they are on track. This includes evaluating the investment portfolio within the 529 plan to keep pace with rising tuition costs. It’s important to periodically review the asset allocation to ensure it aligns with your risk tolerance and the timeframe until the funds will be needed. At Seaside, we believe in the power of education, and a well-funded 529 plan can significantly ease future financial burdens for your loved ones, setting them up for success.

Start Early with Year-End Gift Planning

Maximizing your annual gifting strategy requires early preparation. Begin by preparing for gifts of business interests or other assets, which often require appraisals or valuations. Starting early ensures these are completed in time to make the most of your gifts and minimize the use of your lifetime gift and estate tax exemption.

If new trust agreements are needed, begin the process early to allow for thorough review and comfort with the arrangement. Trusts can be complex, and understanding the implications of creating irrevocable trusts and releasing control over assets is crucial. Early planning allows you to think through all possibilities and ensures that you are making informed decisions.

By planning ahead, you can maximize the impact of your gifts and efficiently use your lifetime gift and estate tax exemption. This thoughtful approach aligns with Seaside’s philosophy of proactive and personalized financial planning. Furthermore, early gifting can be particularly advantageous if your business is considering or nearing a liquidation event, allowing you to make gifts at a time when they can have the most significant impact.

Conclusion

Solid financial planning is a journey, not a one-time event. As summer winds down and we prepare for the busy fall season, it’s the perfect moment to review and adjust your financial strategy. This checkup is crucial to ensure you remain on course to achieve your long-term goals.

This commentary reflects the personal opinions, viewpoints and analyses of the Seaside Wealth Management, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by Seaside Wealth Management, Inc. or performance returns of any Seaside Wealth Management, Inc. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Seaside Wealth Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.