In the world of special needs planning, one of the most pressing questions for families and financial advisors alike is: How much funding is necessary to ensure a comfortable and secure future for individuals with disabilities? The task of calculating the exact amount needed for a Special Needs Trust or Plan can seem daunting, but with a strategic approach, it becomes manageable and less overwhelming. Understanding the Spectrum of Needs The United States hosts a large community of over 43.5 million Americans who care for individuals with disabilities or special needs, such as autism, Down syndrome, Alzheimer’s disease, physical disabilities, or traumatic injuries. The financial implications of caregiving, on top of the emotional and physical demands, can be significant, making it crucial for caregivers to have a solid financial plan in place. The Vision for the Future The foundation of a special needs plan often starts with a will and a letter of intent, outlining a clear vision for the future that includes education, medical care, housing, and living arrangements post the caregivers’ demise. However, understanding and quantifying the financial needs is complex, influenced by various factors such as the individual’s age, life expectancy, diagnosis, and the caregivers’ financial situation. A Multi-Faceted Approach to Planning Planning must be comprehensive, beginning with current expenses and then projecting future costs, taking into consideration the living arrangements and the individual’s social, educational, and healthcare needs. Planning also involves preparing for the untimely death of caregivers, ensuring that the lifestyle of the person with […]

As the new year rolls in, it’s the perfect time to reflect on your financial goals and set a solid plan in motion. The beginning of the year is a time of fresh starts, and that includes your finances. By establishing clear financial planning goals, you can set yourself up for a successful year, paving the way for a healthier financial future. In this blog post, we will discuss essential financial planning goals to consider as you embark on your journey to financial success in the coming year. Assess Your Current Financial Situation: The first step in any effective financial plan is to assess your current financial situation. Review your income, expenses, debts, and investments. This evaluation will help you understand where you stand financially and identify areas that need improvement. Create a budget to track your cash flow, allocate funds appropriately, and identify areas where you can potentially save money. Establish Emergency Savings: One of the most crucial financial planning goals for the beginning of the year is to build an emergency fund. Life is unpredictable, and having a safety net with three to six months’ worth of living expenses can alleviate financial stress during unexpected challenges such as job loss or medical emergencies. Start by setting small, manageable savings goals that you can incrementally increase as the year progresses. Set Long-Term Goals: Beyond immediate needs, it’s essential to set long-term financial goals. Whether it’s saving for retirement, buying a home, or funding your child’s education, having clear objectives […]

Financial planning is a Socratic process of discovery. Below is a non-exhaustive list of questions we ask our clients and suggest you ask of yourself: Financial Planning How have my cash flows changed? If I’m drawing income from portfolio assets, what is the optimal withdrawal strategy in response to volatility? If working, what is the likelihood of cashflow disruption and how long can core expenses be covered w/o income? What are my core expenses? Am I adequately insured? As a business owner, am I aware of and optimizing leverage, retirement accounts, tax credits, loss carry backs…? If I am compensated with employer stock, what is my liquidation and diversification strategy? Am I properly diversified? How do I know? What level lifestyle do I want to finance in the future and when? Do I actively rebalance in accordance with my pre-defined investment policy? Am I taking advantage of volatility and actively tax-loss harvesting throughout the year to optimize my taxation? If I had a loan secured against my portfolio, in the event of a market hiccup, what is my plan to avoid a margin call forcing me to sell assets at depressed prices? Does my advisor and banker have a plan for that? Am I supporting another family member or friend? Estate Planning Is my estate plan in order? Do I have a physician’s directive, medical power of attorney, a durable power of attorney, HIPAA Release, a Will, and any other documents necessary to carry out my wishes? Where are these […]