Beyond having a financial goal and a well-balanced portfolio, it’s also important to make sure you don’t have gaps in your overall financial plan. When I work with clients, one gap I often see is in their estate planning. Having an estate plan is such a crucial component of managing your investments, but I’ve found that clients are often reluctant to address it. I can understand why—it can be challenging and uncomfortable to think about your death. While it’s easy to push estate planning out of your mind when you’re still young, in my experience it’s better to begin planning early. This way, you can set your loved ones up for success when the time comes.
One night in early July, as my wife and I were preparing for bed, we had unexpected visitors. Police officers showed up on my doorstep to inform me that my elderly aunt had passed away in her sleep. As the executor of her estate, I knew what my aunt’s wishes were and I’d thought I was prepared for this moment. But I soon realized just how much there was to do.
I was on the phone for what felt like hours that night, speaking with the police, contacting a funeral home, reaching out to members of my family to inform them of what happened. In the days that followed, I made decisions about the funeral home, visited the local courthouse, dealt with utilities and spoke with creditors. Needless to say, it was much more involved than I’d anticipated. After having experienced this firsthand, I now have a different understanding of this process. I was so grateful to all who were kind enough to help me, and I’d like to help you too.
Kevin Wilde is a senior financial advisor with Vanguard Personal Advisor Services®. Since 2011, he’s been providing financial planning services and investment advice to Vanguard clients. Kevin is a Certified Financial Planner™ (CFP®) professional with a bachelor’s degree from the University of Arizona and an MBA from the University of Phoenix.