Know your asset worth and how to handle it.

We all have assets….possessions. Whether they consist of material things, or financial things. Make a list of your assets…your bank account(s), stocks, bonds, retirement accounts, car, home, and all that is in it.  These, are your assets….your estate.

What you want to do is have more in your financial assets than in your material assets.  Reason being, that you will need your financial assets down the road, when you retire (and it comes quicker than you think).  Having a decent financial portfolio (savings, iRA’s, stocks, bonds etc., is what you will use to live on in retirement. So, how you save now will mean how well you will live later.

You have only you to depend on for this. Pensions, and even social security is not a definite part of your future income, so you can’t depend on it.  It is why it is imperative to be diligent and save as much as possible now and as you move forward in your working years.

You should also speak to an Estate Planner. Check around, and find one you trust. After all, they will be guiding you with your financial matters.

You should have your accounts include a beneficiary and a contingent beneficiary should the inevitable happen. This is done so that your assets will go to those you choose, rather than having the state take over and your assets will go to someone you may not want to have them.

A Trust is a good idea as it is private, and does not go through Probate after your death. A Revocable Trust can be drawn up and it can be changed at any time if you change your mind for any reason about your choice of beneficiaries. Probate is costly and is not private. A Will is not private and has to go through Probate. And Probate Court costs are pricey. Therefore, stick with drawing up a Trust.