With the year winding down, now may be a good time for residents of Nevada to take a look at the state of their finances. Estate planning at the end of this year may mean a better, more financially stable future next year and in the years to come. While many people frequently take a nonchalant approach to estate planning as something they’ll handle “later,” proper planning now can make all the difference.
To begin, individuals may want to take a step back and get an overview of their complete financial inventory. Taking stock of assets and making sure they’re properly invested is important, but so is noting liabilities so that individuals can plan how to pay down debts in the coming year. This is also a chance to revisit any estate plans already in place and make sure beneficiary forms are updated. Designated beneficiaries on IRAs or insurances policies take precedence over previous estate planning like wills or trusts, so it can be important to remember to update beneficiary forms on an almost yearly basis to make sure they reflect an individual’s current wishes.
Individuals can also take this time to make sure they understand how taxes affect their IRAs and 401(k)s, to save as much money as possible. Because many people traditionally receive holiday bonuses, this season can be a great time for individuals to “top off” retirement accounts, like a 401(k), if they haven’t reached their maximum allowed annual contribution. Putting this money into a retirement fund on a pre-tax basis can help eliminate some income taxes.
While proper financial planning is important at any time of life, it can become even more so if an individual is nearing retirement. The advice of a lawyer who is familiar with the ins and outs of wills and trusts, taxes and the various types of retirement funds can prove invaluable in the long term. Residents of Nevada who have been putting off their estate planning as something they’ll get to eventually may find peace of mind this holiday season by knowing they’re starting the new year off on the right foot financially.
Source: businessinsider.com, “A financial adviser shares a 5-step checklist to complete before the end of 2016“, Tanza Loudenback, Dec. 9, 2016