Smart Estate Planning and Asset Protection Strategies For Millennials
Young adults often get a bad reputation when it comes to their reputation for managing money. While many struggle to balance the high costs of living with low wages, parents and other older adults often question their choices, wondering why they do not have more in savings or have delayed starting a family or buying a home. The fact is that most millennials face very real and specific challenges when it comes to achieving financial success. The good news is that by practicing some basic estate planning and asset protection strategies now, you can achieve a more positive financial outlook in the year ahead.
Financial Strategies You Can Practice Now
With a highly competitive job market, falling wages, and the burden of enormous student loan debts, millennials are the first generation to potentially end up worse off financially than their parents. According to studies by the World Economic Forum, earnings among young people in the United States are nearly half of the prior generation, while their debt burden due is at record setting levels.
These figures present a grim outlook, but Money Control advises that there are some simple steps you can take now to increase your assets over the coming new year. These include:
Set financial goals: Decide on what you want to accomplish over the next year, and map out what you need to get there. Goals can be a great motivator, and can help you stick with a financial plan.
Start investing: No money for mutual funds, stocks, or bonds? Consider cutting out one evening out a month and use the money you would have spent at a club or on an expensive dinner on investments instead.
Build your credit score: While you want to avoid running up high amounts of debt, buying items such as furniture or a car and making payments on it can actually help build your credit score.
Save for retirement: Regardless of what you make, put a portion of your pay into a retirement account.
.Asset Protection and Estate Planning for Millennials
In addition to financial planning, you also want to make sure you are protected in the event the unexpected occurs:
Consider life insurance: You can lock in a lower rate when you are young, while taking advantage built in savings plans.
Name a financial and health care power of attorney: This authorizes a person you select to make important financial and medical decisions on your behalf if you become incapacitated.
Designate accounts as Payable on Death (POD): By filling out a simple form at your bank, this authorizes someone you select to access funds in the event something happens to you.
Create a will: In addition to naming beneficiaries of your property or assets, this can convey your final wishes to loved ones.
It is never too early or too late to begin planning for your future. At Cavallo & Cavallo, we provide the legal guidance you need to make smart decisions that will end up benefiting you in the years to come. Call or contact our office online today and request a consultation with our New York estate planning and asset protection attorneys.