Quick Preview:
Our Cornerstone Retirement Blueprint Process is focused around 5 key pillars of retirement planning designed to help our clients achieve the retirement they have always dreamed of. On this episode, we’ll explain the fifth and final pillar in our process: legacy planning.
On This Episode:
The final pillar in our Cornerstone Retirement Blueprint Process is the most overlooked by clients when the planning begins. Naturally, we’re focused on the present as well as the goals that are immediately in front of us. Most people haven’t given a lot of thought to what they want to do with their estate when the time comes.
But it’s a critical part of the planning we do at Cornerstone. Not everyone wants to leave behind a legacy. It’s about a 50-50 split for our clients when it comes to that, but for those that do, let’s make sure you’re leaving as much as you can to those that mean the most to you.
This has always been a key piece of the process but it takes on a higher priority with the passing of the SECURE Act to begin 2020. This new legislation put an end to the Stretch IRA, which leave beneficiaries with 10 years to distribute every dollar in the account. That’s money that your loved ones will have to pay income tax on and likely during their highest earning years. You wind up leaving a tax bomb for beneficiaries if proper planning isn’t done.
A lot of people have questions about working with both an advisor and an estate planning attorney. Both parties play important roles and we work directly with the attorney to ensure communication is clear and everyone is working towards the same goal.
To help explain this pillar of the Blueprint Process, one of our partners here, Anthony Napolitano, joins the show. He’ll walk you through the conversations we have with clients during this step, and then we’ll provide examples of this pillar really benefiting someone we worked with.
Thanks for checking out this episode of the podcast. Make sure to listen to the rest of the series on the other five pillars.
A lot of the planning that we do with the estate planner can revolve around tax-free legacy planning, and as long as we’re communicating with the attorney back and forth, it can lead to a very sound plan.
Timestamps:
1:16 – Legacy planning is often not even on someone’s radar when planning begins.
2:16 – What does the conversation usually look like with clients?
4:30 – What percentage are interested in leaving a legacy?
5:52 – The basic mistakes we see people make.
8:31 – The Stretch IRA is gone now thanks to the SECURE Act.
11:03 – No trust or will is another big mistake.
12:53 – What role does the advisor play with the estate planning attorney?
15:13 – An example of how this relationship works.
15:46 – Anthony shares a client example of how we helped them with this pillar.
