Individuals who are married or in a committed relationship face the possibility they’ll end up managing finances alone at some point in their lives. Unfortunately, the first time many experience handling complicated financial matters alone is during a personal crisis following the death or divorce of a spouse or partner.
We’ve prepared a list of thought-provoking questions pertaining to financial fitness and crisis preparedness. You can use these as a starting point to check how prepared you are to handle a personal financial crisis in your life. Begin by reviewing the questions, determine what you’ve already done, and check those items off the list. For the questions you need to address or take action on, seek the advice of professional advisors and trusted family members.
Asset management
- Do I have a clear picture of where my assets are located?
- Will my retirement assets provide a comfortable retirement for my life expectancy?
- Do I have a well-diversified portfolio?
- Are my investments appropriate in today’s economy?
- Are my assets titled properly?
- Do I have an emergency fund?
- Am I taking advantage of techniques to reduce my taxes?
Estate planning
- Do I have a will?
- Is my will current?
- Have I determined what my family may owe in estate taxes?
- Have I funded my estate-tax liability?
- Have I explored and taken advantage of wealth-transfer techniques?
- Do I wish to provide for charitable giving?
- Are my power of attorney and my living will up to date?
Debt management
- Do I know my credit rating?
- Could I get a loan if I applied?
Insurance
- Do I have enough insurance coverage to cover medical expenses?
- To provide for disability/long-term care?
- To provide for family members’ security?
- To fund estate-tax liability?
In addition …
- Have I coordinated my advisors’ (attorney, CPA, banker) activities?
- What changes in my life are likely to occur within the next three years?
- Do I know the status of my parents’/children’s financial situation and the implications for my financial well-being?
- Would I be prepared for a family emergency if it happened tomorrow?
Our firm does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that could have tax consequences. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in
your state
This article was written by/for Wells Fargo Advisors and provided courtesy of Katie C. Phifer, CERTIFIED FINANCIAL PLANNER™ and Financial Advisor in Beaufort, SC at 843-982-1506.
Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.
