The Inside Press

Magazines serving the communities of Northern Westchester

financial planning

Planning for the Unexpected: Protecting Yourself & Your Family with Estate Planning

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For many of us, estate planning is something we know we should do but often manage to postpone until some indefinite time in the future. But, putting off this part of your financial life could mean passing over an opportunity to preserve the lifestyle you’ve worked so hard to create and to dictate your legacy on your terms.

Why You Need an Estate Plan

The primary purpose of estate planning is to ensure that you control how your assets are distributed. Estate planning is also about planning for unexpected events, such as physical and mental impairment, which may place financial strain on your family.
A well-crafted estate plan is likely to have multiple goals:

  • To protect your lifestyle
  • To provide for your family and others, including charitable organizations meaningful to you
  • To control distribution of your assets
  • To minimize estate taxes

Your Estate Planning Checklist

Depending on your goals, you may need to consider different tools, resources and strategies to help you develop an estate plan that reflects your priorities. Here are some important documents and services you may need to help protect you and your family in the event of disability:

  • A living will is a legal document containing your wishes regarding medical measures that might be taken to prolong your life in case of serious illness or injury.
  • A durable power of attorney for health care, also known as a health care proxy, appoints someone you trust to make health care decisions on your behalf if you are unable to do so.
  • A durable power of attorney for financial matters gives someone legal authority to make financial decisions if you are unable to do so.
  • An inventory of important information includes information about your property, bank accounts, insurance policies, employee benefit plans, mortgages and debts. It also includes your estate planning documents and beneficiary designation forms.
  • Disability insurance can help replace a portion of lost income if illness or injury prevents you from working.
  • Long-term care insurance can help to pay for the costs associated with disabilities caused by age and infirmity, such as nursing home care.
  • Other important documents and services help to protect your family and your legacy in the event of your death:
  • Life insurance can provide financial benefits for your named beneficiaries if you pass away. Used strategically, life insurance can also help address other estate planning objectives, such as reducing the impact of estate taxes or charitable giving.
  • A will is a state-specific legal document that sets forth your wishes regarding the distribution of your property and the care of any minor children.
  • Trusts may be beneficial for a variety of life events and situations, including tax law changes, marriage, college saving, a child with special needs, serious illness, inheritance, and retirement planning.

The most difficult part of estate planning is getting started. Once you begin, you will find estate planning is a positive and constructive way to put yourself in control of your legacy.

Need help taking the first step? Working with a Financial Advisor can help you bring all the elements of your estate plan together to help ensure that you have an integrated strategy in place to protect yourself and your family.

Disclosures

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard bloom is a Financial Advisor in 1290 Avenue of the Americas at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Richard.Bloom@MorganStanley.com or by telephone at 212-893-7597. His website is http://www.morganstanleyfa.com/mayergelwarggroup

Insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC’s licensed insurance agency affiliates. Not all products and services discussed are available at Morgan Stanley.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://www.morganstanleyfa.com/mayergelwarggroup.

© 2024 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 6476982 03/24

Fidelity Investments® Opens New Chappaqua Investor Center

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As pictured, staff at Fidelity Investments’ Chappaqua Crossing Investor Center celebrate the opening of their newly-opened facility, located at 480 Bedford Road.

The 5,250 square feet office is a state-of-the-art facility providing area investors with access to investment guidance, as well as Fidelity’s broad array of products and services. Fidelity now has more than 197 investor centers around the country, with 19 investor centers located in the New York City area.

“Fidelity Investments is excited to be opening this Investor Center at Chappaqua Crossing, which is a full-service investor center with a unique design, driven by the needs of our clients and based on customer feedback and pilots designed to better understand what would work,” said Andrew Davison, Branch Manager of the Chappaqua office. “Our objective in designing this space was to create an inviting and engaging environment, one that provides the best possible experience for our clients.”

Fidelity Investor Centers provide clients with education, innovative technology and one-on-one guidance to help them develop strategies for a variety of financial objectives. At Fidelity’s local offices, clients can work with a Fidelity Investment professional to:

  • Evaluate retirement readiness and get help preparing a retirement income plan
  • Conduct a comprehensive portfolio review
  • Take advantage of Fidelity’s Portfolio Advisory Services1 which provides ongoing portfolio management
  • Review useful information on estate planning, charitable giving, life insurance and college planning2
  • Participate in a wide offering of free educational seminars and workshops

Pictured are the staff at the Investor Center, including Andrew Davison, Branch Manager of the Chappaqua office (shown, center). Andrew Davison brings more than 12 years of financial services experience to his position overseeing the renovated investor center.  Mr. Davison holds the Series 7, 9, and 10 registrations and holds the CERTIFIED FINANCIAL PLANNERTM designation.  At the investor center, he works with a team of 13 associates dedicated to helping investors with their investment needs.

To learn more about the new Investor Center and how it can help with your financial planning decisions, contact: Andrew Davison, Branch Manager at 914-215-6225 ext.54666.

1. Fidelity Portfolio Advisory Service® is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee.
2. Fidelity does not provide estate planning, legal or tax advice. Laws of a particular state and your particular situation may affect the information. Consult with your attorney or tax adviser regarding your specific legal or tax situation.

Getting a Strong Start to 2018

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By Scott M. Kahan

It’s almost spring and now is the time to give your finances a “spring cleaning!”

With the stock market sell off and continued volatility after record highs, interest rate increases, new tax laws and the ongoing uncertainty as to what is going on in Washington, now is the time to organize. Here are a few quick things to address to get started.

  • Review your portfolio. With the return of volatility in equity prices and rising interest rates, it’s probably a good time to review your asset allocation. A simple way to re-balance your portfolio is to first set what percent of your portfolio should be in each asset class. Then when reviewing your portfolio, the sectors that have gone up will be over weighted and should be reduced, while the underperforming sectors will be under weighted and can be added to. If you follow this practice, it forces you to sell high, buy low and take the emotions out of investing.
  • Review Your Taxes and Cash Flow. New tax laws have ushered in much confusion. With a limitation of $10,000 for SALT deductions, (State and local tax), along with various other impactful changes, now is the time to review your 2018 taxes. Even though you may be in a lower tax bracket, you still could end up paying more tax due to the lower allowed deductions. Check your withholding tax to make sure you are not under or over paying your taxes during the year. Then look to see if you are fully funding your retirement plans and look for all possible deductions to minimize your income tax. When you file your 2017 taxes, make sure to do a projection for 2018 as well.
  • Review Your Estate Planning. When was the last time you looked at your wills and other estate planning documents? Make sure all beneficiaries are in place in retirement accounts. Review to make sure you have named guardians for minor children. If you have avoided setting up your estate plans, now is the time to address this important issue.

A simple review can help bring focus to your overall financial picture. A qualified Certified Financial Planner Professional can help ensure your financial affairs are consistent with your current and long-term goals and objectives. Get a strong start for 2018!

College Planning 101

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Bradley E. Silverman, a junior partner and financial advisor with Raymond James of Armonk
Bradley E. Silverman, a junior partner and financial advisor with Raymond James of Armonk

by Dan Levitz

When I received the assignment for this article it certainly seemed like a perfect fit. Suburban Dad with a high school senior seeks and finds expert advice regarding the daunting reality of paying for college. I’m pretty sure my Editor was confident I was the right guy for the story because, presumably, my family was already knee-deep in the college process and must have planned ahead for this wonderful rite of passage that comes with an inevitable, and sometimes tremendous, financial burden. I eagerly accepted the assignment, self-assured that I was the Man for the job. Notably, after doing my research, I realized that I was not quite as well-informed as I believed and wish I had known then what I know now. Story of my life!

In 11th grade, as my son began thinking seriously about where he might like to continue his education, my wife and I felt strongly that our priority should be helping him make an informed decision about college. Years ago things were certainly different; I didn’t visit a single school when I was applying and, in retrospect, I couldn’t have been less informed. It’s quite possible that I may have decided where to attend college based on a sweatshirt worn by a cute girl in my class. So, this last year was absolutely fruitful in that we visited over 10 varied schools in different parts of the country, and my boy was able to find the right situation for him. Now, small deposit made, the sobering reality of paying for the privilege of his higher education has abruptly arrived.

When I walked into the offices of Raymond James in Armonk to gather some expert advice on how parents should start financial planning for college, I journalistically took the position of pure ignorance on the subject which was not much of a stretch. I met with Bradley E. Silverman, a junior partner and financial advisor with the firm, and within minutes he informed me that he not only had already enacted a college savings plan for his three year old son but also had one in place for his daughter who is not expected to join the family until she’s born several months from now! Clearly I was in 
the right place and also talking to the 
right person.

I complimented Mr. Silverman on his vision in planning so early for his children’s future and he modestly pointed out that college planning is part of his job and that he would be remiss if he didn’t do so himself. I told him about my family and that, while my wife and I certainly saved money over the years, we did not use any specific method or instrument for college savings. Sensitively, Mr. Silverman didn’t comment on our lack of financial vision but did proceed to inform me of a variety of financial plans that parents can benefit from in planning for their children’s education.

Mr. Silverman described several methods of financial planning for college but the one he and his family are utilizing, and that he recommends, certainly sounds like a responsible and educated approach. The 529 Savings Plan is state-sponsored and offers tax-deferred savings as well as a certain amount of flexibility that can be beneficial to the family and student. A 529 Plan offers a number of investment portfolios allocated among stocks, bonds, mutual funds, CDs and money market instruments. Significantly, in addition to parents contributing to a 529, grandparents can do so as well and, at the same time, potentially affect their estate planning in an advantageous manner. An important aspect of the 529 is that qualified higher education expenses like tuition, books and supplies can be paid for via the plan while maintaining a tax advantage. And, of course, the big picture is that if a 529 Plan is enacted when a child is small the gains from the investment will hopefully be substantial and go a long way towards paying for a higher education with very favorable tax consequences.

As we chatted, I expressed genuine amazement at the cost of college in 2015, especially private colleges. We discussed the financial advantages of state universities like the fine SUNY system in New York, of which Mr. Silverman and I are both proud graduates. I asked him about the ideal value-wise scenario for college and Mr. Silverman replied, “Financially that would be an Associate’s Degree at a good Community College and then on to a great University.” I think this pragmatic approach might be a hard sell to an ambitious college senior, but Mr. Silverman will find this out for himself as his kids mature. In any case, I was impressed with his knowledge and ability to communicate the many advantages of thinking ahead and saving early in a child’s life.

After our conversation, I felt very positive about learning more about this type of financial planning because college is a tremendously important experience and it shouldn’t have to be a crippling financial burden. I’ve given some very broad strokes but the folks at Raymond James can answer any and all questions on the subject and certainly get young parents started on intelligently saving for their children’s higher education. Not a bad idea.

Dan Levitz, an art dealer and writer, has been a Chappaqua resident for the past 11 years and has a blog on 
The Huffington Post.