Successful people come in a variety of types, but a common denominator in successful people is that they have a good awareness of their own personality with money. Money personalities affect the way we behave when making financial decisions and how we go about spending, saving and investing. It really helps to know our own money traits.
“Your health isn’t everything, but without your health, everything is nothing.” Asheville-based cardiologist Dr. Brian Asbill isn’t sure who initially said this quote, but he adamantly believes in it.
The trustee acts as the legal owner of trust assets and is responsible for handling any of the assets held in trust, filing taxes for the trust and distributing the assets according to the terms of the trust.
The cost of health care in the U.S. continues to rise with no slowdown in sight. According to the Centers for Medicare &Medicaid Services (CMS), healthcare spending in the U.S. is projected to grow at an average annual rate of 5.4% and reach $6.2 trillion by 2028. Average Americans, regardless of their health, are feeling the impact directly in their wallets.
I had a conversation with a recent college graduate who was preparing to buy his first car. He had an encyclopedic knowledge of every feature and option offered on each car he was considering and yet seemed unsure of the right choice. I asked what was causing his indecision and he said, “I know what I earn but I don’t know what I can spend” (did I mention he is a very smart, young man?)
A client received a letter informing him that thousands of dollars in unclaimed funds in his name had been located. The “finder” company offered to help him claim this property for a fee; 10% of the value recovered. But first, our client would need to provide a copy of his driver’s license, disclose his Social Security number, execute a notarized claim form, and entrust all of this private information to a company he had never heard of. That’s when he came to us.
The trustee has a large number of duties and responsibilities to the trust maker and the beneficiaries.
Traditional finance is based on the premise that investors are able to consider all relevant information to make rational financial decisions. The underlying assumption is that all investors are risk averse and that everyone prefers higher returns to lower returns for the same level of risk. In practice, these assumptions are unrealistic because investors are not perfect and are subject to behavioral biases.
A common misconception many people have is that financial planning is just about investing or planning for retirement. I admit, just a few years ago, I was one of those people.
I am most thankful for my health and the good health of my loved ones. But, good news aside, I’ve been thinking a lot about the end of life recently. No, I’m not depressed or terminally ill. Just like you, I plan to live well beyond my life expectancy. Perhaps this heightened awareness of the uncertainty of life has come about due to the coronavirus and totally unrelated albeit tragic recent events within my own circle of friends. Sadly, I imagine you don’t have to think very long or hard to remember a friend or loved one who is no longer here.
