Estate Plans | Market Rebound & Financial Planning 101

Communicating Estate Plans

Estate planning has far more to do with relationships than net worth. Net worth certainly matters and can equate to different levels of complexity, but estate planning is more about the handoff than the balance sheet. We often see mistakes, particularly among our clients who are on the receiving end of an inheritance. Among them are:

Probate delays that drag on for months
Conflict over the power of attorney (especially financial decisions)
Lack of clarity around intent–“what mom or dad would have wanted”
Unnecessary tax drag that could have been easily avoided

You’ve probably heard a few of the basic principles around updating your will regularly and reviewing beneficiaries, as well as your power of attorney (POA). There are a few more questions you should also ask that focus first on your intent, then on the documents.

Among our key decision makers (POA, trustees, etc), have we prepared them to steward the responsibility well?
Have we proactively communicated our wishes for assets, property, and charitable commitments so that we avoid surprises?
Do our inheritors have the names of the financial professionals needed to navigate the wealth transfer? (financial advisors, CPA, estate attorney, etc.)

If it’s been a while since you’ve reviewed and communicated your estate plan, we’d encourage you to put some time on the calendar to keep your plans in step with your life.

Market Rebound: Stocks ended the second quarter with a gain of more than 11%, with the technology sector—the first quarter’s biggest laggard—leading the market higher once again. It was the stock market’s best quarter:

The tech sector which returned 21.95% after falling more than 12% in the first quarter. Other sectors saw a turnaround: communication services stocks gained 18.79% after falling 6.19% in the first quarter, while consumer cyclicals rose 10.91% after losing 12.83% in the first quarter as tariff fears faded. Industrials rallied 13.08% after a 3.21% loss in the first quarter. On the other hand, healthcare and energy stocks declined after posting solid gains in the first quarter.

Financial Planning 101: It can often be the big moments of life that lead clients to us—a child gets married, purchasing a new house, an unfortunate health scare, or the inevitability of retirement. By your 40s, we recommend being able to confidently answer these questions:

How should I prepare financially in case I become unable to work?
Have I made the necessary preparations in case I die unexpectedly?
How will we fund our children’s education?
How much do I need for my retirement?
What happens if I need care later in life?
How will we transition assets to loved ones most efficiently?

We know these can be tough conversations, especially if you feel like you waited too long to address them. If we can help you or someone you may know as they consider their financial plan, please reach out.

Quote of the week: “Financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know.” — Morgan Housel, Financial Services ‘Guru’

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

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