Friday, March 29, 2024
39.0°F

Financial spring cleaning

by Les AtchleySpecial to
| March 28, 2010 9:00 PM

Springtime is here! Actually, North Idaho has enjoyed spring-like weather for much of this past winter, but it's wonderful when the season officially arrives. It's one of my favorite times of year - a time of re-birth, new growth, and fresh starts. As Janet and I are cleaning up around the house, I love to open the windows and hear the birds sing, my neighbors laugh, and the umpire shout, "Play Ball!"

It feels good to be in sync with the natural rhythms of life. That's why while we're all cleaning and organizing our homes, it's the perfect time to get our financial houses in order, too. Here at Atchley Financial Group, we call it Financial Spring Cleaning, and it's a tradition that has many benefits. It clears out old or out-of-date information, refines and updates your long-term plans, and hopefully leaves you feeling confident and secure that your affairs are in order.

Here's a simple checklist to get your started:

• Life Insurance

Take out your life insurance policy and read it carefully. Does the amount seem right? Are the beneficiaries correct? Has the company made any changes in the policy over the years? We tend to put this off, but it's critically important. You want to make sure there's enough coverage so that your loved ones will be taken care of when you're no longer there to do it yourself.

• Living Will and Trust

Look over your living will and trust. These need to be dusted off, too. Are your beneficiaries up to date? Have any of your gift considerations changed? If you have a child, have you listed the right guardian in case of emergency?

You want to make sure your living trust is set up correctly to avoid the costs and delays of probate court. But the living will is equally as important. It enables you to make important health care decisions in advance, regarding artificial life support, donation of your organs, and Power of Attorney.

• Letter of Instruction

Finally, I suggest that you take a few moments and write the most important letter of your life. This letter will be indispensable to your family in the unfortunate event of your sudden death or medical incident that renders you unable to communicate. You'll want to write down all your bank accounts as well as your life insurance, disability and long-term care policies. List the locations of your security box, legal documents, and investments. Write down your user names and passwords, and list all of the critical people your family needs to contact, including your doctors, wealth manager, attorney, and spiritual advisors.

• Education Plan

If you have an Education 529 Plan, you should take a few moments to review it. If you don't have one, you should look into the tax benefits of setting one up. They're tax-advantaged investment vehicles designed to help your children or grandchildren get through college without having to shoulder some of the enormous debt they might incur from college loans. The key, of course, is to start as early as possible. And besides the tax considerations, the main difference between an Education 529 Plan and a simple savings account is that the funds from the plan can be invested across various asset classes including the stock and bond markets, and not a bank.

An investor should consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This information may be found in the Offering Statement. The tax implications of a 529 plan should be discussed with a qualified tax advisor. Securities are not insured by the FDIC or any other federal government agency, have no financial institution guarantee and may lose value.

Of course, if you'd like more information on any or all of these suggestions, we'd be happy to help. Since it's an annual tradition around here, we know how to make Spring Financial Cleaning less of a chore and more of a life-affirming event. So grab your paperwork, give us a call, and come on over. We'll help you get your financial house in order faster than you can say, "Spring has sprung!"

The Author

Les Atchley is the founder of Atchley Financial Group, a national wealth management firm headquartered in Coeur d'Alene that specializes in retirement, investment, and estate planning. He and his team of specialists help clients make intelligent decisions with their wealth in order to realize their goals and achieve financial independence. You can contact him directly at 208-664-1900 or learn more about the firm by visiting their Web site at AtchleyFinancial.com.

Opinions voiced in this article are not to be construed as investment advice or relied upon for investment decisions. Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Atchley Financial Group, Inc. and NPC are separate and unrelated companies.