Ep 76 – The 4 Biggest Obstacles to Effective Estate Planning

Common Sense Financial Podcast

Show Notes

Life when you’re gone… an uncomfortable conversation most people prefer to avoid.

Why isn’t that a good idea? How can estate planning help you ensure that things are taken care of once you aren’t around anymore?

Listen to learn about big mistakes people make, the different elements that make up the estate plan puzzle, the three primary areas of cash flow, and the type of plan you should have in place.

  • When it comes to end of life financial planning, many people tend to put it off because it’s an uncomfortable conversation to have.
  • Even though the process for end of life planning is relatively simple in nature, Brian recommends getting professional help to deal with the details, which can be complex.
  • Despite every situation being different, there are several core aspects of estate planning that everyone should consider.
  • The first has to do with title and legal work. Brian has noticed that many people have a complete misunderstanding of the role legal work plays within their planning.
  • Then, there’s life insurance. Many households rely on two incomes – or people – contributing to the family’s ecosystem.
  • Their contribution to the family must be replaced when they’re gone, and that’s where life insurance comes into play.
  • Another important, but often overlooked, aspect to an estate plan is budgets and cash flow. Brian doesn’t recommend planning in terms of weeks or months for it… rather, to plan in terms of years.
  • “Your cash flow can be broken down into three primary areas,” says Brian. “Reoccurring obligations, irregular obligations, and savings.”
  • Debts and investments are an additional area that makes up the estate plan puzzle.
  • Brian stresses the importance of cash flow and shares a couple of examples that illustrate its key role.
  • End of life planning is a difficult topic to address. Brian’s suggestion is to take steps to protect your loved ones by creating a custom comprehensive plan with the help of professionals.
  • After that, the next step is to communicate the plan with your partner and family members – then, enjoy the peace of mind that comes along with knowing you have done everything in your power to provide for your loved ones.

Mentioned in this episode:
Estate Planning Checklist

The podcasts posted here before July 1, 2022 are historical in nature and were previously approved by Kalos Management, LLC. The views and statistics discussed in these shows are relevant to that time period and may not be relevant to current events. This is intended for informational and entertainment purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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