1. Financial AND ESTATE Planning for YOUNG PROFESSIONALS
Presented By
Tucker McDonald ’07 and Elizabeth Volney Newton ’06
May 2, 2018
Securities offered through Private Client Services, Member FINRA/SIPC. Advisory products and services offered through US Advisory Group, a Registered Investment Advisor. Private Client Services and US Advisory Group are unaffiliated entities. Further, Tucker McDonald, PCS and Elizabeth Newton are not affiliated.

2. Financial planning: How to start
It is Never Too Soon to Start Building a Financial Plan!
Start with Drawing up:
Balance Sheet (What You’re Working With)
Cash Flow Statement (Income vs Expenses) and
Current Budget (Breakdown your Expenses)
Identify Discretionary vs. Non-Discretionary Spending

3. Goals-based financial planning
Identify Goals and Differentiate between Short- Medium- Long-Term Goals
Ex: Saving for a Trip; Wedding; Down Payment for a Home
Savings for Kids’ Education; Rainy-Day Fund
Saving for Retirement
Develop a Budget and Plan to Attack Each Goal
Prioritizing Goals is Practical and Important!

4. Different methods of saving for different goals
Short Term: Savings Accounts, Money Markets, CDs, Health Savings Accounts (HSAs)
Medium Term: Investment Accounts, College Savings Plans
Long Term: Investment Accounts, Retirement Accounts
Individual or Employer-Sponsored Retirement Plans
Real Estate is an Investment too! Importance of Liquidity for short-term; short-term instruments are less volatile; risk vs reward; Methods to manage risk in investment accounts

5. Quick rundown of retirement Accounts
Put your Assets to Work & Take Advantage of Long Time Horizon
Benefits of Tax-Deferred Growth
Employer-Matching of Contributions
Flexibility When you Change Jobs
Emphasize Long Time Horizon – Easiest Way to Manage Market Risk

6. Different types of investment plans
Retirement Plans: 401(k) vs. IRA vs. Roth IRA vs. 403(b) Plans
College Savings Plans (529s)
Fee-Based vs. Brokered Investment Accounts

7. Other financial planning considerations
Risk Management – Use Appropriate levels of Life Insurance
Tax Planning – Protecting Your Assets from Uncle Sam
Healthcare Planning – Considerations for Parents/Grandparents
Protecting Their Assets
Establishing Beneficial Designations, Asset Titling, Charitable Contributions
Trusts for Minors & Special Needs
Can Add your Alma Mata as a Beneficiary
Syncing your Financial Plan with your Estate Plan
Communication between generations is key for inter-generational planning. Healthcare expenses are among fastest-rising expenses in America. Medicaid kicks in after spending down assets.

8. What is an Estate Plan? Testamentary estate plan documents
Incapacity estate plan documents
Coordinating beneficiary designations
Asset reallocation for estate tax minimization (taxable estates only)
Most people know they need a Will, but not many people know what an “estate plan” is. An estate plan is made up of two, possibly three assets. (1) documents that protect and distribute your person and your assets (your estate) during life and upon death; (2) beneficiary designations that coordinate with the testamentary estate plan documents; and (3) for taxable estates, reposition assets to minimize estate taxation

9. Who Needs an Estate Plan?
Short answer: Everyone, in order to make your wishes clear
Most critical:
Persons wishing to avoid disposition through the intestacy laws
Married couples without children
Parents with minor children
Persons with charitable inclinations
Persons with taxable estates
If you die without a Will, the state has a law indicating to whom your property would be distributed. This is called intestacy. Most notably, in Massachusetts, if you are married but do not have children, your parents are entitled to a portion of your estate. If you want to avoid the distributions that the state set up, you need a Will. Other scenarios where an estate plan is most crucial: (1) parents with minor children – can name a guardian in a Will; can set up a trust where you appoint a trustee to manage the property for your children if both parents die while the children are young; (2) persons with charitable inclinations – charities are not entitled to a portion of your estate under intestacy rules; (3) persons with taxable estates – certain trusts you can set up to minimize or eliminate estate tax

10. Basic Estate Plan Will Durable Power of Attorney Health Care Proxy
Advance Directive (a/k/a Living Will)
HIPAA Release
Release of Electronically-Stored Information
Declaration of Homestead

11. Will 1. Document’s Purpose Who gets the property?
Whose responsibility is it to distribute the property?
Naming a guardian for minor children
What is NOT covered by the Will?
Non-probate property (JTWROS; Beneficiary Designations)
Lifetime management

12. Incapacity Documents
Durable Power of Attorney: Financial decision making
Health Care Proxy: Medical decision making
Advance Directive: Expression of wishes; not legally binding
HIPAA Release: Authorizes release of protected health information
Release of Electronically Stored Information: Authorizes release of “digital assets”
Homestead Declaration: Protects home from creditor claims up to $500,000

13. Using Trusts in Estate Planning
Protecting assets for minor children
Minimizing or eliminating estate tax
Removing the value of life insurance from your taxable estate
Preserving assets in the case of a long-term care need
There are many types of trusts that you can incorporate into an estate plan. Some minimize estate taxes, some remove the death benefit of life insurance policy from one’s taxable estate, some are a vehicle to hold assets until your children reach a certain age where they are able to responsibly manage the money for themselves.

14. Financial AND ESTATE Planning for YOUNG PROFESSIONALS
Thank you for attending tonight!
Financial AND ESTATE Planning for YOUNG PROFESSIONALS
Securities offered through Private Client Services, Member FINRA/SIPC. Advisory products and services offered through US Advisory Group, a Registered Investment Advisor. Private Client Services and US Advisory Group are unaffiliated entities. Further, Tucker McDonald, PCS and Elizabeth Newton are not affiliated.