Blog

Total Return versus Income Investing

By on July 1, 2026

As we near and enter retirement, there are two investment strategies that one can choose from:  total return investing or income investing.  While investment advisors can differ on which approach is better, the majority favor total return investing for retired and near-retired investors.  This month we’ll take a look at the reasons for this.  Let’s begin by briefly explaining these two approaches.

Total Return Investing

Total return investing is an investment strategy that focuses on the overall return of a portfolio — the combination of capital appreciation (the increase in the value of investments) and income (dividends, interest and other distributions).

Income Investing

Income investing is an investment strategy focused on generating a steady stream of cash payments from your investments rather than primarily seeking growth in their value.  The goal is to create regular income from sources such as:  dividends from stocks, interest from bonds and CDs, distributions from REITs (Real Estate Investment Trusts) and income from certain mutual funds and ETFs (Exchange-Traded Funds).

Comparing Both Approaches

Here’s a quick comparison of these two approaches to retirement investing.

 

 

 

 

 

 

 

 

Why Choose Total Return Investing

People who favor income investing, often believe in the old adage that it’s best to leave principal untouched.  People who favor total return investing focus on how their portfolio can sustainably support their spending needs throughout retirement (instead of how much income does their portfolio generate).  And really, shouldn’t running out of money in retirement be the focus?

Choosing one of these approaches is obviously step one.  After that there are many, many details involved in constructing a portfolio that will protect you and your family through your entire retirement.  If you’d like some help thinking about all of this, or any other financial matters, we’d be happy to get together in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in ,

How Much Should I Save Each Month?

By on June 1, 2026

What a great question!  Unless we really think about this and set up some concrete plans, we may delay a proper savings program causing us to have to save more later on or not be prepared for expenses as they pop up.  In my experience over the years, I’ve seen that savings needs vary by age, income, current level of savings, etc.  So every person’s specifics are different — a one-size-fits-all approach can be misleading.  There’s also the need to enjoy life now as well as to prepare for the future.

Whew, that’s quite a bit to consider.  Where to begin?  As a starting point, many people turn to the 50/30/20 guideline.  It simply says that you might consider using 50% of your take-home (after-tax) income for necessities (housing, food, insurance, utilities, transportation, etc.), 30% for wants (entertainment, dining out, travel, etc.) and 20% for savings and debt repayment (which is actually a form of saving).

You might be thinking there’s no way I can save 20% per month.  Maybe that’s true, but the most important factors are to regularly save something and to start now.  Okay, so whatever you are able to save, how might that be divided up among your various savings goals?  Once again, that really depends on your situation, but something called the Hierarchy of Saving might help you think about this:

Build a starter emergency fund

Save enough to cover small unexpected expenses (often $1,000–$2,000 or one month of expenses).

Capture employer retirement match

If your employer offers a retirement plan match (like a 401(k)) — contribute enough to get the full match.

Pay off high-interest debt

Focus on credit cards and other high-interest debt before heavy investing.

Build a full emergency fund

Aim for 3–6 months of essential expenses (more if income is variable).

Maximize tax-advantaged savings

Retirement accounts such as 401(k) and IRA, Health Savings Accounts (HSA), etc.

Save for short- and medium-term goals

Home down payment, car replacement, travel, education costs, major purchases, etc.

Invest beyond retirement accounts

Taxable brokerage accounts for additional wealth building

There are a few tried-and-true methods for achieving your savings plan.  To start, pay yourself first.  That is, treat savings as you would your mortgage or any other must-pay expense.  Next, automate it.  If you never see the money, you’ll be much less likely to spend it on something else.  And finally, if you come into additional funds (raise, inheritance, bonus, etc.), allocate as much as you can to savings.

That’s quite a bit to think about!  We can help you tailor these decisions to the right approach for your family, or discuss any other financial matters, in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

Teaching Kids Financial Responsibility

By on May 1, 2026

Some people are better at managing their expenses than others, but money management is definitely a skill that can be learned.  What some people don’t realize, however, is this that money management is a practiced skill that builds over time.  Like many skills (e.g. learning a language or an instrument), learning how to earn money, budget and spend money are things that can be introduced in childhood.  If you’re not already teaching your child about how to be financially savvy and are unsure of where to begin, we’ve got a few ideas.

Start early with simple concepts

Young kids can grasp that money is limited and choices matter.  Use everyday moments — grocery shopping, choosing between toys — to explain tradeoffs:  “If we buy this, we won’t get that.”  This builds the foundation of opportunity cost without calling it that.

Use an allowance (with structure)

An allowance is a tool, not just free money.  Consider dividing it into buckets:

  • Spend (fun now)
  • Save (short-term goals)
  • Give (optional, but builds perspective)

Some parents tie allowance to chores; others separate the two so kids learn that basic responsibilities aren’t always paid.  Either can work — just be consistent.

Make saving visible

For younger kids, physical jars work well.  For older kids, a simple savings account lets them see money grow.  You can even introduce basic concepts like interest.  You can also match their savings to encourage them.

Let them make mistakes (cheap ones)

If they blow all their money on something trivial, resist the urge to bail them out.  That discomfort is the lesson.  It’s far more effective at age 10 than age 25.

Introduce earning opportunities

Beyond regular chores, offer ways to earn extra for bigger goals.  This connects effort to income and helps them understand work-reward relationships.

Set savings goals together

Help them plan for something they want — a bike, a game, a trip.  Break it down:  “You need $100, you save $10 a week, so it takes 10 weeks.”  This builds patience and planning.

Model behavior (this matters most)

Kids learn best by watching what you do, not by what you say.  They’ll notice how you spend, save and talk about money.  If you budget, avoid impulse buying and discuss decisions openly, they absorb that.

Talk about needs vs. wants

This sounds basic, but it’s a lifelong skill.  Revisit it often — especially when they start wanting more expensive items.

Introduce giving and values

Whether it’s charity, helping family or community support, this frames money as a tool — not just something to accumulate.

Raise the bar for teens

  • Give them a larger, less frequent “budget” (e.g., for clothes or entertainment) and let them manage it.
  • Add a credit or debit card with a limit and show how accounts work.
  • Talk about credit, debt and interest before they’re exposed to it in the real world.
  • Let them get a part-time job if possible.

Understanding the “why”

Don’t shield them completely from financial realities.  Age-appropriate transparency (like explaining why you’re budgeting or skipping a purchase) helps them understand the reasoning behind decisions.

Like many skills, financial skills are habits and judgment over time, not just knowledge.  There’s a lot to learn, but it can be done slowly when starting young.  If you’d like to kick around the right approach for your family, or discuss any other financial matters, we’d be pleased to meet with you in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in ,

Do Childless or Single People Need an Estate Plan?

By on April 1, 2026

YES!  There are many reasons why you might be childless.  More and more people choose not to have children.  Many people choose to remain single.  Possibly your spouse/partner predeceased you.  Sometimes children predecease parents.  Sometimes children are estranged from parents.  You get the idea.

So, if there are no children to inherit your estate, why bother setting one up?  There are several reasons.  First, whatever you leave may go to someone you don’t want to have it.  Second, estate planning also includes financial and medical Power of Attorney (POA) designations to make important decisions for you if you can’t make them yourself.  As an overview, here are the key elements of an estate plan:

  • A will.
  • Financial POA.
  • Medical POA (or healthcare directive).
  • Beneficiary designations (retirement accounts, insurance).
  • Possibly a revocable living trust (depending on assets).

Okay, let’s take a closer look at the first reason.  Without a will, your assets are distributed under your state’s intestacy laws.  In a place like Colorado, that usually means:

  • First a spouse (if you have one).
  • Then parents.
  • Then siblings (even if you’re not close).

If none exist, your estate could eventually go to distant relatives — or even the state.  You might prefer to designate where it will go.  Some options include the following:

  • Leave money to friends or extended family.
  • Donate to charities or organizations you value.
  • Set up scholarships or legacy gifts.

Now for the second reason, estate planning isn’t just about death — it’s also about what happens if you’re alive but unable to make decisions.  Without documents in place:

  • Doctors may not know who can make medical decisions.
  • Courts may appoint a guardian or conservator.

The key documents required to make sure things are handled the way you want are:

  • Financial power of attorney.
  • Medical power of attorney.
  • Living will/advance directive (sometimes incorporated into the Medical POA)

If you just don’t have anyone you trust with these responsibilities, many estate planning attorneys and professional trustees can handle the administration of a will and also act as a financial POA.  It is more difficult to find a professional who can serve as your medical POA.  However, there are some resources that can help with this.  They are often called “care management companies.”  Google finds several serving Fort Collins.

Of course there’s much more to this topic.  For example, do you wanted to make provisions for the care of a long-time pet?  Do you want to avoid having the courts appoint a guardian to care for you?  Are there family members that you don’t want to receive anything?  Whatever your questions on estate planning (with or without kids), or any other financial matters you’d like to discuss, we’d be pleased to meet with you in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

2026 Retirement Account Contribution and Eligibility Limits

By on March 1, 2026

Well, we’re just starting the third month of 2026, so it’s a good time to be sure that your retirement savings contributions are properly set up since it’s so much easier to fund these accounts over time instead of having to make larger contributions closer to retirement.  This month we’ll cover the contribution and income limits for 2026 so you can contribute as much as you can afford within the IRS limits.

401(k) & 403(b) Contribution Limits

Employee Contribution Limit:  $24,500.

Catch-up Contribution (ages 50 and above):  $8,000 extra*.

“Super” Catch-up (ages 60-63):  $11,250 (if your plan allows)*.

*Note:  If your 2025 wages exceeded $150,000, catch-up contributions must be Roth (after-tax) rather than pre-tax—but your contribution limit ($24,500) stays the same.

Combined employee + employer contribution Limit:  $72,000.

Individual Retirement Account Contribution Limits (Traditional & Roth IRA)

Annual contribution limit (combined Traditional + Roth):  $7,500.

Catch-up contribution (age 50+):  $1,100 additional.

Note:  You must have earned income to contribute to an IRA.  Spouses with no earned income may qualify under a spousal IRA rule.

Traditional IRA Deductibility Limits

Traditional IRA contributions are always allowed as long as you have earned income, but deductibility depends on your income.  Your 2025 Modified Adjusted Gross Income (MAGI) determines whether your traditional IRA contribution is fully deductible.  Here are a couple of examples for two types of filers.

Single Filers:

≤ $81,000:  Full deduction.

$81,000 – $91,000:  Partial deduction.

≥ $91,000:  No deduction.

Married Filing Jointly:

≤ $129,000:  Full deduction.

$129,000 – $149,000:  Partial deduction.

≥ $149,000:  No deduction.

Roth IRA Contribution Limits

Your 2025 Modified Adjusted Gross Income (MAGI) determines whether you can contribute to a Roth IRA.  (Roth contributions are never tax deductible.)

Single Filers:

<$153,000:  Full Roth contribution allowed.

$153,000–$168,000:  Partial Roth contribution allowed.

≥$168,000:  No direct Roth contribution allowed*.

Married Filing Jointly:

<$242,000:  Full Roth contribution allowed.

$242,000–$252,000:  Partial Roth contribution allowed.

≥$252,000:  No direct Roth contribution allowed*.

*Note:  While you can’t contribute directly to a Roth IRA above these limits, a backdoor Roth strategy may still be available.

The above summary doesn’t cover every possible situation.  For example, there are rules for other types of filers such as those not covered by employer plan.  Perhaps you have a different type of plan such as a 457(b) plan, Thrift Saving Plan, SIMPLE plan or a Simplified Employee Pension (SEP) plan.  Or, maybe you’re wondering about how to use the backdoor Roth strategy.  Whatever your questions on retirement contributions, or any other financial matters you’d like to discuss, we’d be pleased to meet with you in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

Empty Nester Financial Moves

By on February 1, 2026

When your youngest child eventually leaves home, it’s the perfect time to reassess your finances.  It typically costs a family about $24,000 a year to raise a child.  So, depending on the number of children who have left, this can be a significant amount of money.  For many of us, the nest empties out when we’re in out mid to late 40s.  That’s good timing because the peak earning period for many people is ages 45-55 and many people are able to save the most in their 50s and early 60s.  Additionally, many families haven’t sufficiently invested in retirement savings due to the cost of raising children.  But now, you’ll have more money available and this month we’ll look at some of the key financial adjustments you should consider at this important time in your life.

Retirement Savings.  These are your peak earning years and you have lower child expenses.  Perfect!  Increase your 401(k)/403(b) and traditional or Roth IRA savings.  These investments even let you save more with catch-up rules.  In 2026, the standard 401(k) catch-up contribution limits for individuals aged 50 and older increases to $8,000.  A special “super catch-up” of $11,250 applies to those aged 60-63.  IRA catch-up contributions also begin at age 50 and are $1,100 in 2026.  If you still have available funds after this, put them in a taxable investment.  Most of us will need all of these resources in retirement.  Another important retirement consideration is how you’ll pay for ever-increasing health expenses.  Whether these funds come from savings or from some form of insurance, these costs are important and considerable.

Housing.  Think about the size of your home.  Maybe it was perfect for a family of five, but seems unnecessarily large for two people.  If you want to downsize, it can free up significant amounts of money and probably lower your mortgage.  Having said that, many people cherish continuing to live in the house where their kids grew up.  It’s a choice.

Reducing Expenses.  For many families, a great way to save is to free up cash by reducing expenses.  This might be your mortgage, credit cards and student loans.  This cash might also be funneled into your retirement savings.  Maybe you don’t need as much life insurance at this point.

Estate Plans.  Whenever there are significant changes in our lives, it’s always wise to revisit our estate plans.  Do they still reflect your wishes?  Have grandchildren become a factor?

Planned Enjoyment.  It can be tricky to balance enjoying life now AND preparing to enjoy it in retirement.  Nonetheless, it shouldn’t be all one way or the other.  It’s truly a balance.

Supporting Adult Children.  Naturally, there will be times when you will want to provide support for your kids.  Just keep in mind that this is the time you must prioritize retirement, so you can accumulate enough money and so that it has time to grow.

Yep, that’s quite a bit to think about.  If you’d like some help looking at this important life transition, or help with any other financial matter, we’d be pleased to meet with you in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

Smart Money Moves for 2026

By on January 1, 2026

January 2026, can you believe it?  This is the perfect time to get organized to improve your financial picture throughout the coming year.  There are many things a person might do and, as always, the best moves depend on your circumstances.  Nonetheless, many experts agree that the following list might be useful.

Check Signals.  Since it’s now football playoff time, I couldn’t resist that title.  But seriously, just as the quarterback scans the defense and figures out what play to run, we should look over our situation and figure out the best things we can do in the next twelve months.

Emergency Fund.  Yep, there are surprises in life and sometimes they’re pretty expensive.  Have you put aside three to six months in savings in case you lose your job, in case someone needs healthcare involving significant copays, in case you need a new car or in case your house needs a major repair?

Debt Reduction.  Retiring high-interest debt is a super important financial goal.  Once eliminated, you’ll have more money in your pocket.

401(k).  I’ve said this before and I’ll keep on saying it, if your employer offers matching funds for its 401(k) program, take them – all of them.  It’s free money and it will help you prepare for your retirement. So make sure your contributions cover the full employer match.

IRA.  If you can invest money on a tax-deferred basis, this should be your next stop after the 401(k).  (Even if your income is too high for the tax advantage, a Roth IRA will create a retirement account where withdrawals will be tax free!)

Insurance.  Be sure your policies still cover your needs.  Did you have a new child last year and does that mean your life insurance should increase?  Have home prices in your area gone up and will your homeowner’s insurance still cover replacement costs?

Healthcare.  Think about this specifically during your insurance review as it’s so critical to your financial wellbeing.  Is last year’s coverage still satisfactory for 2026?  If you’re eligible for an HSA, are you set up to make regular contributions?  Do you have a plan to cover assisted-living and other medical expenses as you age?

College.  Have kids or other little loved ones?  A great way to help these children prepare for their future is to set aside money to help with the expensive cost of college.  A 529 is one tax-efficient way to approach this.

Automatic Deposits.  You’ll probably have the greatest financial success if you set up automatic deposits to fund your various objectives.  If you never see these funds, it will be easier to operate on the income that is available.

Tax Payments.  Whether money is withheld from your paycheck or you file quarterly estimates, confirm that the amounts are okay and that you won’t be needlessly loaning the government interest-free money (overpayments) or be on the hook for interest and penalties (underpayments).

Estate.  Are your estate documents up to date?  Have important people entered or left your life since the last revision?  Are your appointed representatives still able to act on your behalf when necessary?

That’s quite a bit to think about, but I’ll bet you can appreciate how important it is.  If you’d like a little help planning for the coming year, or help with any other financial matter, we’d be pleased to meet with you in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

2025 Year-End Tax Checklist

By on December 1, 2025

Only 31 days until 2026! By taking certain steps before the end of the year, you might be able to significantly reduce your 2025 tax bill. This month, we’ll go over some things to review before the end of the year.

Review Major Life-Event Taxes

If any of these happened in 2025, adjust your tax planning as they can change your deductions, tax bracket and filing status.

• Marriage or divorce

• Birth or adoption

• Home purchase or sale

• Large medical bills

• Inheritance

• Starting or closing a business

Review Your Withholding & Estimated Taxes

Do you hate having to pay penalties for not having adequate withholding or quarterly payments? You can avoid these via the IRS “Safe harbor rules.” These rules protect taxpayers from underpayment penalties as long as they meet certain minimum payment requirements — even if they end up owing more tax when they file. These are most commonly used for estimated tax payments. Here’s how it works: pay at least 90% of the tax you owe for 2025 or pay 100% of your 2024 tax (110% if your income was over $150,000) to avoid any penalties.

Decide Whether to Itemize or Take the Standard Deduction

For 2025, the standard deduction for single filers is $15,750 and for joint filers it’s $31,500. So, now you need to tally up your eligible itemized deductions to see which approach is best for you.

As a reminder, itemized deductions can include:

• Medical expenses that are over 7.5% of AGI. So, if possible, schedule elective procedures or pay medical bills before year-end if it helps surpass the 7.5% of AGI threshold.

• State and local taxes up to $40,000 in 2025 (deduction is reduced or even eliminated for high-income filers).

• Mortgage interest on qualified loans. Interest on your mortgage, points and prepaid interest and Home Equity Loans and Lines of Credit (HELOCs) used to buy, build or substantially improve your home are deductible.

• Charitable contributions. You can donate cash or appreciated investments. If you’re 70½+, you can make Qualified Charitable Distributions (QCDs). A QCD is a direct transfer of money from your traditional IRA to a qualified charity. In 2025, the contribution is limited to $108,000 per person. A QCD is excluded from your taxable income. And better yet, if you’re 73+ and required to take a Required Minimum Distribution (RMD), a QCD satisfies part or all of your RMD.

• Casualty or theft losses are deductible only if the loss is from a federally declared disaster like a hurricane, wildfire, or flood officially declared by FEMA. (Not deductible for losses from typical theft, car accidents or minor incidents outside of declared disasters.)

• Other deductions can include unreimbursed business expenses (if allowed) and investment interest (that is, interest paid on money borrowed to buy investments that generate taxable income).

• If your itemized deductions are just below the standard deduction, consider “bunching” expenses into one year. For example, prepaying property taxes or charitable contributions before December 31.

• Maximize your HSA and FSA contributions and remember to use up your FSA funds if they can’t be rolled over (which is typical).

• Capital Gains & Tax-Loss Harvesting. You can offset capital gains by selling losing positions. In addition, you can use up to $3,000 of net capital losses against ordinary income.

Check Tax Credits

See if you quality for any tax credits. (As a reminder, a tax credit is a dollar-for-dollar reduction in the amount of tax you owe.)

• Child Tax Credit

• Earned Income Tax Credit

• Education credits (American Opportunity Tax Credit and/or Lifetime Learning Credit)

• EV credits — if the vehicle was purchased by September 30, 2025.

• Energy-efficient home improvements credit (if you upgraded your home in 2025).

Consider Gifting & Estate Moves

In 2025, you can give up to $18,000 per recipient tax-free without affecting your lifetime estate and gift tax exemption. No gift tax is owed and the gift is excluded from your taxable income.

Whew, that’s quite a lot to consider.  If you’d like some help thinking about all of this, or any other financial matter, we’d be pleased to meet with you in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

What is Spaving?

By on November 1, 2025

Most of us recognize that many marketing campaigns are designed to get as much of our money as they can and to get it right now.  This has actually led to a term called spaving which is a blend of spending and saving.  It refers to the illusion of saving money by spending money.  In other words, you spend more than you’d planned thinking you’re saving money.

As an example, you go to a store planning to buy one shirt for $30.  You see a deal:  “Buy two, get one free,” so you buy three shirts for $60.  You tell yourself you “saved” $30, but you actually spent double what you intended.  Another very common example is “Free shipping on orders over $50.”  You add random items to hit $50 instead of paying a $5 shipping fee — effectively spending more than needed.

Naturally, there are times to spend a little more, but often you’re tricked into this.  You might properly spend more to get a good deal on toilet paper or other items that you’ll definitely use and that are cheaper in bulk.  You might avoid a $25 shipping charge by adding a $5 item to your order.  It all boils down to whether you’ll really use the items and what the total price of the alternatives is.

So, it’s a good idea to watch out for these marketing tricks.  Here are some ideas on how to do that:

  • Shop with a List. Before buying, write down what you actually need — and stick to it.
  • Ask Yourself the “Full-Price” Question. Would I buy this item if it weren’t on sale?  If not, it’s probably spaving.
  • Compare to Your Budget, Not the Discount. Focus on what you’re spending, not what you’re “saving.”
  • Wait 24 Hours Before Buying. The “cooling-off rule” — if you still want it tomorrow, it’s more likely a real need.
  • Unsubscribe from Marketing Emails. Stores use constant discounts to create urgency and tempt you to spend.
  • Track Your “Deals.” Note how often sale items actually saved you money versus when they cost you extra. The pattern can be eye-opening.

Hopefully you’re now super aware of spaving and will mainly avoid it.  If you’d like to further discuss this topic or any other financial questions that you may have, we’d be pleased to get together in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

National Estate Planning Awareness Month

By on October 1, 2025

October is National Estate Planning Awareness Month.  Its goal is to raise awareness about how critical it is to have a plan in place for managing and transferring assets, protecting loved ones, reducing tax burdens and avoiding complications such as probate disputes.  While many professionals recommend reviewing your estate every 3-5 years, a less in-depth annual review is prudent given changing tax laws and the many dynamics in your own life.  We have previously written several articles to help you with estate matters.  This month, we’ll give you a few tips on what to think about as you review your estate plans.

  1. Review Personal & Family Changes
    • Births, deaths, marriages, divorces.
    • Changes in relationships with heirs or beneficiaries.
    • New dependents (minor children, elderly parents, disabled family members).
    • Moving to a new state (estate planning documents are governed primarily by state law, and the rules vary).
  2. Check Your Will & Trusts
    • Confirm executors/trustees are still appropriate and able to serve.
    • Update beneficiaries or distribution wishes.
    • Ensure trusts still meet their purpose (tax planning, asset protection, special needs, etc.).
  3. Update Beneficiary Designations
    • Retirement accounts (401(k), IRA).
    • Life insurance policies.
    • Payable-on-death (POD) or transfer-on-death (TOD) accounts.  (These override your will, so they need to stay aligned.)
  4. Review Powers of Attorney & Health Directives
    • Financial Power of Attorney.
    • Healthcare Power of Attorney/Living Will.
    • Check if your chosen agents are still willing and able to serve.
  5. Inventory Assets & Debts
    • List new accounts, property, investments or business interests.
    • Remove assets you no longer own.
    • Consider digital assets (online accounts, crypto, intellectual property).
  6. Consider Tax Implications
    • Review estate, gift and income tax thresholds (federal and state).
    • Take advantage of annual gift exclusions if helpful.
    • Update plans if approaching estate tax limits.
  7. Review Insurance Coverage
    • Life insurance: still adequate for family needs?
    • Long-term care or disability insurance: still appropriate?
  8. Evaluate Charitable & Legacy Goals
    • Confirm charitable bequests still align with your values.
    • Adjust giving strategies (donor-advised funds, charitable trusts, etc.).
  9. Check Business Succession Plans (if applicable)
    • Ownership transfer, buy-sell agreements and management succession.
  10. Meet with Advisors (even a short check-in can prevent costly oversights)
    • Estate planning attorney.
    • Financial advisor.
    • Tax professional.

You’ve spent a lifetime accumulating your assets.  Surely it’s worth your time to be sure your estate plan is in order once a year.  If you’d like someone to help you review your estate plan (or get started with one), we’d be pleased to help out in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.

Posted in

Next »
Next »