Summer is Here! Time to Plan!
A Rise in Consumer Confidence
With summer upon us and COVID restrictions being lifted, we are definitely seeing a rise in consumer confidence and optimism, which had plummeted this time last year. And, this is not just a US phenomenon but a global phenomenon as well, as can be seen by the Consumer Confidence Index from OECD.
The impact of this confidence is reflected in the financial markets as most indices provided very high (eye-popping!) 1-year returns (as of May 31, 2021).
Take a Moment to Reflect on Your Goals and Plans
Yet, all these market movements and all the potential tax law changes (read our blog 2021 Tax Changes: What We Know Now) remind us that it is a good time to pause and reflect. Take the time to review your overall estate and investment plans to ensure everything is current and aligned with your vision, values, and goals.
Here are some questions to ask yourself while sitting by the pool or on the flight for your long-awaited vacation:
Estate Planning
Are your estate documents complete and up to date?
Are your wills current?
Do you have all your powers of attorneys and medical documents in place?
Have you thought about how your estate may be impacted by any of the changes being contemplated by Congress and the Biden Administration? (Read our blogs about tax changes and potential estate law changes.)
Is everything documented and well understood by more people than just you?
Put bluntly, is your estate prepared for your passing?
Investments
Are your asset allocations correct?
How have you done through these ups and downs relative to a real benchmark?
How did feel about the volatility and risks you might have experienced over the last year?
Do you have risk appropriately scaled and allocated?
What would you have done differently? What have you learned about yourself as an investor?
Giving and Tax Management
Have you made the most of the ups and downs to capture tax savings through loss capturing?
Do you have highly appreciated assets where a charitable strategy may reduce tax liabilities and allow more giving?
General Planning
Do you have a good sense of your baseline budget?
Are you adequately saving for anticipated life events and retirement?
Do you have a financial plan that contemplates various economic and life scenarios?
Are you confident with your financial future?
If you are uncertain about any of these questions or need some guidance thinking through them, please feel free to reach out to one of our advisors. We are here to help!
