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The beginning of a new year is a great time to take stock of your current situation, physically and financially. Good health and a healthy lifestyle are priceless.
Gary Logan
Wes Shannon
At the end of the great Christmas movie “It’s a Wonderful Life” there is a note from guardian angel Clarence to George Bailey, Jimmy Stewart’s character, that says: “REMEMBER NO MAN IS A FAILURE WHO HAS FRIENDS.”
Take stock of your friends and look for ways to strengthen and add to your friendships. Most studies today show that our minds and bodies benefit from being social. Have people to hang out with. It’s good for you. Especially men, who, according to studies, are most vulnerable to loneliness in old age.
Also, take the time to review your will. Does it have what you want going to the people you want? What might have been your wishes back five or 10 years ago may have changed. People and your own wealth change easily.
Think about any new responsibilities you may now have to another person. One of my clients had a will done before his wife passed away 15 years ago. He is now in a wonderful relationship with a new lady and would like to provide for her in the event of his death. Time for him to get a new will.
Another client had his will giving 40% to each of his two children and 10% each to his two grandchildren. Now the grandchildren are grown and out of school and doing well and he wants to give 25% each to all four of the children and grandchildren. He needs to change that page of his will.
Review the beneficiaries of your retirement accounts. Accounts like a 401(k), 403(b), and Individual Retirement Accounts (IRAs) all pay outside of the will directly to named beneficiaries. Make sure those beneficiaries are who you want.
Life Insurance also pays outside of the will. Doublecheck with your insurance company who the beneficiaries are of your life insurance. Not only personally owned insurance but your group insurance, too.
Bank accounts and brokerage accounts can be set up to “Pay on Death” (POD) or “Transfer at Death” (TAD). Check with your bank and your investment companies to make sure these are who you want them to be. POD and TAD also happen outside of the will and go to an individual you name. Sometimes, bank employees make mistakes and when a person just wants to add another person with signature rights to an account the bank will put them on a TAD also. It’s important to review this.
Do your heirs a favor and make a list or spreadsheet of these beneficiary designations and then send it in an email to at least two other people. A child, spouse, grandchild, accountant, lawyer, or financial planner. The more you communicate the less likely for there to be misunderstandings after you die. Most challenges of wills and family legal actions can be prevented if the deceased had given their wishes in advance in writing to the family members.
Charitable gifting should also be reviewed each year. Now is a great time to see if you can increase your gifting in 2025 over what was given in 2024. With the blessings of wealth comes the responsibility to assist those less fortunate. Self-reflect to see that you are doing your part to help those who may not have had the opportunity or advantages that you had.
Make an appointment now at the beginning of 2025 to meet with your Certified Financial Planner™ and make sure your estate plan is up to date. They can bring in your attorney, accountant, and account institutions to make the changes you require. Happy New Year! May 2025 be a year of good tidings.
Wes Shannon CFP® is a Certified Financial Planning Professional for Brazos Wealth Advisors in Fort Worth.