MEET THE PANELISTS

Resources for Beginning Your Financial Journey 

• New York Times Better to Rent or Buy Calculator

• UBS WealthWay Introduction

Advance Directives

Upon turning eighteen, an individual’s parents no longer have financial and healthcare decision making authority in the event of incapacity. Thus, it is a good idea to establish Advance Directives before going away to college and/or upon turning eighteen.

• A Power of Attorney is a legal document that grants authority to another person, known as an Agent, to act on behalf of you (the “Principal”). Executing a Power of Attorney allows you to plan for unforeseen circumstances where you may be unable to manage your financial and legal affairs. 

• A Health Care Proxy is a legal document that allows you to appoint someone you trust as your Agent to make medical decisions on your behalf if you become incapable of making those decisions yourself. Executing a Health Care Proxy ensures that your healthcare wishes are respected and followed when you are unable to communicate your preferences.

• A Living Will states specific wishes for end-of-life care. The Living Will only applies in certain situations, namely when someone is terminal or permanently unconscious and typically provides that you do not want life-sustaining treatment if you are in this state. A Living Will guides medical professionals and loved ones in making decisions about your medical care when you are no longer capable of doing so yourself. 

• The Disposition of Remains Appointment allows you to appoint someone to oversee your body after you pass away.

Life Insurance

• Life Insurance is a financial product that provides a death benefit payout to beneficiaries upon the insured person’s death, helping to cover expenses and provide financial security.

• Term Life Insurance provides coverage for a specified period (e.g.. 10, 20, 30, etc. years).  If the insured person dies within this term, the policy pays a death benefit to the beneficiaries. If the term expires before the insured’s death, the coverage ends without payout.

• Whole Life Insurance provides lifelong coverage and includes a savings component, known as the cash value, which grows over time and can be borrowed against or withdrawn.

• Long-Term Care Insurance is designed to cover the costs of long-term care services, such as a nursing home or home-health care, which are not typically covered by traditional health insurance or Medicare. 

• Disability Insurance provides income replacement to individuals who are unable to work due to a disability caused by illness or injury, helping to cover living expenses during the period of disability.

Checklist of Trusts and Estates Documents for Unmarried People

1. Last Will and Testament or Revocable Trust: This will specify how assets should be distributed and the names of your fiduciaries to oversee the process. This is especially important if you have a partner but are not married as the partner would have no legal right to inherit under intestacy laws as there is no traditional familial relationship. You can also name the guardian for any minor children. Adding a Revocable Trust to your estate plan will afford you additional incapacity protection, allows for the management of your assets during your lifetime and after death, provides privacy, and potentially avoids probate.

2. Health Care Proxy:  Appoints someone (your “Agent”) to make medical decisions on your behalf if you are unable to do so. You can also designate preferences on organ donation.

3. Living Will:  Provides instructions to your Agents named in your Health Care Proxy as to your wishes for end-of-life care.

4. Power of Attorney:  Appoints someone (your “Agent”) to manage financial affairs for you if you are incapacitated.

5. Disposition of Remains Appointment:  Appoints someone to take control of your body when you pass away and to carry out any final wishes. You can also specify your wishes and instructions to your Agent on your final wishes.

6. Beneficiary Designations:  Ensure all retirement accounts, life insurance policies, and other financial accounts have updated beneficiaries.

7. Digital Estate Plan:  Document your digital assets and provide access instructions for your fiduciaries. 

8. Document Storage:  Store your estate planning documents in a safe, accessible place and inform your fiduciaries or trusted individuals of their location.

9. Regular Review and Update your Estate Plan:  Periodically review and update your estate plan to reflect changes in your life or laws.

Key Considerations:

• What are my own ultimate career goals?

•  Am I comfortable potentially relinquishing an ability to return to my work or likely having to take a step back in my title and compensation if I do return in future years?

• Will I be fulfilled in my new role as a parent if I scale back in my career?

•  Will I be comfortable watching my spouse continue to grow in his or her own career?
  

• Have I saved for my own retirement?

•  Did I contribute to my retirement account(s) prior to the marriage?
  

• Does my spouse’s income meet our family needs?

•  If not, do we have family resources we can reasonably rely on to help bridge the gap?
  

•  How does my spouse’s career trajectory look? Is there opportunity for growth? What will that require of both my spouse and me?

• Is my spouse financially transparent with me?

• Do I know what we have in the bank and other assets?

• Do I know what my spouse is contributing to retirement?

• Is my spouse saving or are we spending above our means?

• Do we have enough of a safety net?

•  Is my spouse relying upon separate property assets to support our lifestyle?

• Do we have life insurance policies in place to ensure our children’s needs will be met upon our death?

• Do I know what our current expenses are and what it costs to sustain our lifestyle?
  

• Will I be able to freely access our accounts and have the ability to spend as I feel is necessary?

• Are we aligned on what expenses are necessary?
  

• How would my spouse feel having to pay my spousal support if we divorced? Could my spouse afford to?

Resources on Elderly Care

•  AARP Resources for Caregivers and their Families

•  Caring for a Loved One | Office for the Aging (ny.gov)

• “The Agony of Putting Your Life on Hold to Care for Your Parents” - The New York Times 

With your children preparing for college and your retirement on the horizon as well, you might review your own financial goals as well. 

Retirement Resources

UBS’s Retirement Guidebook provides a comprehensive overview of your retirement planning needs.