Everyone has an estate – start preserving yours

You may not think of yourself as having an estate, but you almost certainly do. An estate is defined simply as the sum of your assets, and your assets are “everything you own.”

Your estate includes your home, farm or business, car, other personal property, retirement savings, investments, life insurance death benefit.

To preserve the assets you already have, both for yourself and your family, financial advisers recommend a well-planned insurance program that includes:

• Life insurance
• Annuities
• Long-term disability
• Long-term care
• Health insurance
• Other insurance, such as personal property and excess liability insurance

Sound retirement planning also incorporates “legacy planning,” or what happens to your assets after you’re gone, advises Wachovia Corp., the nation’s fourth largest bank holding company. The company recommends the following steps:

• Assess your net worth
• Write a will or set up a trust with the help of an attorney
• Designate beneficiaries for retirement plans and life insurance proceeds
• Discuss your wishes with family members and beneficiaries
• Choose your executor (and name a guardian for any minor children)
• Consider writing a “living will,” or medical directives
• Explore the use of trusts for special needs, such as protecting real estate or setting conditions on your money while you are alive
• Keep original copies of estate documents in a fireproof safe or safe deposit box
• Review your plan every five years or as needed

And, in addition to the money you have now for retirement and beyond, continue to maximize your savings. Keep investing to realize the value of compound interest over time. Allocate your investments according to your age, financial goals, risk tolerance and current financial position. Take advantage of tax-deferred options.

Finally, schedule “financial check-ups” annually just as you would medical visits to make sure your savings plan is staying on track.

Copyright 2008 BadgerBoomers.com

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