|First, you’re investing for yourself. It sounds selfish, but it’s not. You contribute to your 401(k) and IRA so that you can retire comfortably, but you also want to become financially independent, so that you’ll never be a burden to your grown children.
Next, you’re investing for your family. You can help your children pay for school through a 529 college savings plan or a Coverdell Education Savings Account.
Also, you’re investing for your beliefs. The more you accumulate, the more you will be able to give to those charitable organizations your support. And your contributions could bring you tax advantages, too.
As you can see, you’ve got some “key constituencies” counting on you. Use this motivation to invest consistently and with a long-term focus.
TOD Agreements Can Reduce Hassles for Heirs
When you work hard all your life, you’d like to leave something to your children, grandchildren or other family members.
And to make it as easy as possible for them to take possession of your financial assets, you may want to consider establishing a Transfer on Death (TOD) Agreement on certain accounts.
Once you’ve established a TOD, you can pass ownership of certain assets in your name directly to beneficiaries, bypassing probate, which can be time-consuming and expensive.
Of course, estate planning can be complex, so a TOD, by itself, may not be sufficient. You also may need to consider other instruments, such as a revocable living trust, which can provide great flexibility in how your heirs receive the assets you left them.
Consult with your tax and legal advisors when making estate plans. To take care of your family properly, you’ll want to make the right moves.
Contact Wendell at Edward Jones www.edwardjones.com.