SHOW ME THE MONEY
Have you stress tested your assets? Have you even thought of it?
When you meet with your doctor for your annual physical, does he/she complete a stress test? That test helps the doctor collect information about how your heart works while you are active.
We always worry about our heart. Your heart, however, is not the only thing that needs a stress test.
So does your money!
I always recommend to have a stress test completed on your money and financial plan. You would be surprised by the results. Many times people are unaware that their Required Minimum Distributions (RMDs) were being taxed at the highest rates, or because the federal estate tax credit is approx. $13 million currently, people believe that the death tax is gone. This is hardly the case. In fact, the credit sunsets in 2025 and there are state taxes in most states.
You need to be sure that your wills, trust, IRAs, and 401(k) beneficiaries are up to date. I have seen many families battle over assets, especially when there is a second marriage, due to outdated beneficiaries.
As you plan for your financial future, it’s important to ensure that your money and wealth plans are prepared for any potential challenges. Stress testing is a crucial tool that can help you identify and address weaknesses in your financial plans. Imagine if your doctor wrote a prescription for you without taking any tests.
By simulating various scenarios, you can gain a better understanding of how your plans would hold up under different conditions, such as market volatility or unexpected expenses. To effectively stress test your money and wealth plans you should meet with a financial advisor, who can help you develop and implement an integrated holistic strategy, based on your needs and wants. They can uncover any problems with your planning and recommend solutions.
With the right approach, you can feel confident that your finances are well-prepared for whatever the future may hold, and that you do not live a “stock market lifestyle” during retirement.
If you have not had your money and wealth plan stress tested, you should do so immediately. Actually, you should do so every year, right when you complete your annual physical.
Until next time, plan and invest wisely, and retire abundantly!
Marc Goldstein, our Finance Editor, is a nationally known Financial Educator and Retirement Wealth Specialist, who helps people protect and pass on their wealth.
