The COVID-19 pandemic has made Americans even more aware of the importance of planning for the unexpected. While no one knows exactly what’s in store for the future, one thing you can do for your loved ones is create an estate plan that expresses your wishes in the event of incapacity or death. If you’re like a lot of people, you may not know where to start, but here are five documents that can form the foundation of a well thought out estate plan:

1. Last will and testament: This is the primary document that defines how you want your property and other assets to be handled. It also assigns guardians for minor children and even pets and it provides a place where you can name your executor, the person who will manage the dissolution of your estate. Your will can also include directions regarding your funeral arrangements, such as whether you prefer to be buried or cremated.
2. Power of Attorney (POA): This legal document identifies an “agent” or person who can act on your behalf. You can choose to be very specific or very broad in the authority you assign to the POA. In some cases, a different family member may be POA for finances and/or personal property while another person is assigned to make decisions regarding medical care.
3. Living will: Also known as an advanced health care directive, a living will conveys your wishes regarding end-of-life medical care. It spells out the extent of life-extending care you want to receive in case you are unable to communicate these preferences yourself. For example, you can request that medical personnel perform invasive life-saving procedures such as resuscitation or tube feeding as needed. Alternatively, you can put in place a Do Not Resuscitate (DNR) order and request only comfort care.
4. Beneficiary designations: Beneficiary designations identify who you wish to receive a particular asset. These designations typically are made within the financial asset itself, such as a life insurance policy or an investment account. It’s important to keep your beneficiary designations up-to-date following a life change such as marriage, divorce, death of a spouse or birth of a child.
5. Inventory of key documents and contacts: Once you have the top four legal documents in place, it’s prudent to think about how your loved ones will access your accounts once you’re gone. A document that lists everything from mortgages and other bills to bank accounts, insurance policies, real estate deeds and other legal proof can be very helpful. Your executor will need passwords for online accounts and may need physical copies of birth, marriage, divorce and Social Security records. Lastly, provide complete contact information for relevant parties such as your banker, lawyer, financial advisor and insurance agent.

Although conversations about estate planning can be difficult, they’re critical to leaving the legacy you want. Talk with a trusted financial advisor who can review your entire financial picture and determine what steps you need to take to safeguard your estate.

About the Author

Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495.

Estate Plan

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For the second time in 10 months, the US Congress has approved a fiscal stimulus plan that is designed to provide a financial boost to a wide range of Americans in response to hardships created by the COVID-19 pandemic. This includes individuals, businesses and other organizations. The legislation was part of a comprehensive package that passed both the House and Senate on December 21, 2020 and was signed into law on December 27.

While the $900 billion+ package is structured somewhat similarly to a stimulus program put forward in March 2020, the level of benefits are generally reduced from that time. Nevertheless, it does offer some help for those struggling due to the economic fallout from the continuation of the pandemic. Here are five key areas of support included in the plan:

#1 Direct payments of up to $600 per person

Economic impact payments of $600 will be made for individuals earning up to $75,000 per year based on adjusted gross income (AGI) in 2019. Married couples with AGI of up to $150,000 will receive $1,200. In addition, a $600 payment is provided for each dependent child. Payments phase out for those with higher incomes. Single taxpayers with a 2019 AGI of $87,000+ or married couples with a 2019 AGI of $174,000+ are not eligible for any payments under this plan. If the IRS has direct deposit information for one of your bank accounts, you will receive the money that way. Others will receive a physical check in the mail.

 #2 Added unemployment benefits

With millions of Americans still unemployed, Congress has approved a modest expansion of benefits by up to $300 per week. This added benefit is scheduled to run until mid-March 2021. Provisions also extend the Pandemic Unemployment Assistance program that offers benefits to those in non-traditional employment such as gig workers and the self-employed.

#3 Rental assistance

The legislation addresses what has been touted as a potential avalanche of evictions of renters. It extends until January 31, 2021 a moratorium on evictions that was slated to expire at the end of 2020. It is possible that the federal government will extend the deadline beyond that date. Included in the bill is $25 billion in emergency assistance to renters to help cover their rental costs. These funds can be used to pay past due and future rent payments as well as utility bills. It is not clear exactly how that money will be distributed.

 #4 Childcare assistance

Additional funding is provided to give states the flexibility to provide child care assistance to families. The bill also includes funding (managed by each state) for direct financial support to childcare providers to help cover their operating expenses.

#5 More financial backing for business owners

The Paycheck Protection Program (PPP), which provides forgivable loans to eligible businesses, is included in this package. $284 billion of funding is earmarked for first and second PPP loans. While small businesses are a primary target, the funds are also available to non-profit organizations, churches and faith-based organizations. An additional $15 billion was set aside to support live performance venues, independent movie theaters and cultural institutions.

 Also included under the business-related provisions is a clarification on tax treatment of expenses covered by PPP loans. Businesses that received loans and had them forgiven are still allowed to deduct the costs covered by those loans on their federal tax returns.An additional provision in the measure reinstates a full tax deduction for corporate meal expenses. This had been limited to a 50 percent deduction under previous law.

This is a time when you want to be sure to balance decisions that address your short-term financial obstacles with your long-term financial plan. Touch base with your financial advisor to discuss your situation and best strategies to cope with this challenging time.

About the Author
Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495.

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By Supal Vora, Private Wealth Advisor

There’s no denying that it can take some work to create good habits. Becoming more disciplined about your finances is no different. Yet smart money habits can pay off over time, helping you increase your bank account and help you create a more stable financial life. Consider these five tips to help you improve your financial acumen.

Practice the principle of mindfulness
It’s as simple as paying attention to your spending habits and putting the brakes on impulsive purchases. When you’re intentional with your money, you make rational decisions based on what you can afford and what you need. Strategies to help you be more mindful include creating a monthly budget, making lists before going to the grocery store and holding off on large purchases until you can really afford them.
Keep tabs on your financial transactions.
Be vigilant about every financial transaction, no matter how small. Even though checkout clerks use computerized registers, they can still make mistakes when entering items or making change. Whether you’re at the grocery store or the department store, watch as items are rung up to ensure you’re being charged appropriately. Check your receipts. Count your change. In the case of banking errors, what you don’t know can hurt your bottom line. Check your online bank statements daily to monitor charges and also watch for fraud, which is on the rise.

Show respect for currency.
When you mistreat money, you diminish its value and give yourself permission to abuse it. Don’t wad up your bills or allow change to accumulate on the bottom of your purse. Instead, store it carefully and keep track of what you have.

Play your cards right.
It used to be that a major credit card was absolutely required for online purchases and travel reservations such as airline tickets, hotel rooms and car rentals. In today’s economy, it’s possible to manage many, if not all of these transactions with a debit card. Credit cards can provide advantages through their reward programs, and disciplined use can help build creditworthiness. Yet many cards come with an annual fee and hefty interest rates when you carry a balance. To limit credit card spending, consider keeping your credit card at home and carry only your debit card in your wallet.

Look within and remove barriers to financial freedom.
If you’ve had a hard time making wise financial decisions in the past, you may be unconsciously sabotaging yourself. For the most part, money attitudes arise from a complex mix of upbringing, culture and self-control. To help overcome this, focus on the things you consistently spend too much on. Is it dining out? Shopping for clothes? Taking vacations? Hone in on whatever your “weakness” is and try to change your spending habits in a particular area.

While each of these five tips can help you build your financial muscle, one of the best things you can do for your financial life is to meet regularly with a financial professional. An experienced financial advisor can provide financial coaching, helping you identify specific strategies for saving and investing for your future. Find a qualified professional whom you can trust to discuss all aspects of your financial life. Meet annually or as often as you require to discuss your financial goals and adjust your spending and saving habits to stay on track.

About the Author
Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495. 

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC. 

© 2021 Ameriprise Financial, Inc. All rights reserved.

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The start of the new year is a great time to focus on your finances and put them into perspective.

Competing demands on our time can often cloud our line of sight on what really matters. So, if you want a better handle on your finances, take these six foundational steps to get a better vision in 2020.

1. Review where you stand

Begin by looking at your broad financial picture. This includes determining your net worth (assets you own minus liabilities or debts you owe). Identify whether you can cut costs in order to put more money to work toward your key financial goals. Also make sure you have a sufficient emergency fund that could cover at least three to six months of income.

2. Reassess your goals

Determine if the goals you’ve established, such as education savings or retirement savings,are still appropriate based on your plans for the future. Are you on track to achieve them? Can you find more dollars to put toward them?

3. Consider your debt and credit score

If you haven’t checked your credit score lately, it’s a good idea to do so. Look at your current debts (auto loans, mortgages, student loans, etc.) to see if there are ways they can be paid down more quickly or if you could benefit by refinancing any loans.

4. Review your portfolio

Investment markets have performed well for an extended period of time. Are you prepared for increased unpredictability in the markets? Make sure the risk reflected in your portfolio aligns with your risk profile. Consider rebalancing investments if your portfolio allocations have shifted due to varying performance for different assets.

5. Conduct a checkup of your protection strategy

Now is a good time to review your insurance policies to make sure you are properly covered. This includes everything from auto and home insurance to life insurance, disability income coverage and long-term care protection.

6. Solidify your estate plan

Pay special attention to your estate planning needs. This is a concern regardless of your age and assets. Review your will to be sure that it is current and reflects your wishes for how your legacy will be carried out. If you don’t have a will, arrange to have one prepared. Consider whether trusts need to be in place or if those in place are uptodate. Also review beneficiary designations on your financial accounts and insurance policies.

In all of these matters and others, it can be helpful to sit down with your financial advisor to review where you stand and plot out your next steps for the year ahead.

About Supal Vora

Supal Vora, AAMS®, CRPC®, is a Private Wealth Advisor and Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, Inc. He specializes in fee-based financial planning and asset management strategies and has been in practice for 16 years. Contact him at: www.pahalvoraandassociates.com, 904.571.1495, 401 West A Street, Ste. 2245 San Diego, CA 92101

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Finances in The New Year

By Supal Vora

We’ve all heard about the importance of having life insurance, but is it really necessary? Often, the answer is “yes,” but it depends on your specific situation.

In general, you should consider life insurance protection if any of the following applies to you:

• You are married and your spouse depends on your income
• You have children
• You have an aging parent or disabled relative who depends on you for support
• Your retirement savings and income won’t be enough for your spouse to live on
• Your estate may be subject to federal or state estate taxes
• You own a business, especially if you have a partner
• You have a substantial financial obligation such as a personal loan for which another person would be legally responsible after your death

In these cases, the proceeds from a life insurance policy can help the people you leave behind after your death.

If you’re still unsure about whether you should buy life insurance, ask yourself: If I died today with no life insurance, would my family need to make substantial financial sacrifices and give up the lifestyle to which they’ve become accustomed in order to meet their financial obligations (e.g., loans, mortgages, college tuition, etc.)?

If you decide you need life insurance, don’t delay buying it. Although no one wants to think about and plan for death, you don’t want to make the mistake of waiting until it’s too late.

There are expenses associated with life insurance. Generally, life insurance policies have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, underlying investment management fees, administrative fees, and charges for optional benefits. Most policies have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the policy. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing company. Life insurance is not guaranteed by the FDIC or any other government agency. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. If you are considering the purchase of life insurance, consult a professional to explore your options.

About Supal Vora

Supal Vora, AAMS®, CRPC®, is a Private Wealth Advisor and Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, Inc. He specializes in fee-based financial planning and asset management strategies and has been in practice for 16 years. Contact him at: www.pahalvoraandassociates.com, 904.571.1495, 401 West A Street, Ste. 2245 San Diego, CA 92101

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Would you be willing to delay your retirement to help your child pay for their first car, college education or wedding? Increasingly, many Americans say the answer is yes. According to a recent study published by Ameriprise Financial, 1 in 3 parents say they have delayed or are willing to delay their retirement to help pay for their children’s college education.(1) And the financial support often continues in adulthood – parents also help their adult children pay for major milestones such as their first home and weddings, sometimes at their own detriment.

As a financial advisor, I help families grapple with this kind of financial quandary. Here’s the advice I offer parents who want to give their adult children a financial head start without harming their own financial future:

Prioritize saving for your own retirement.It takes many years to accumulate the savings you need to retire comfortably. Your children are likely just starting their careers, while your time remaining in the workforce may be limited to 5, 10 or 15 years. Putting yourself first isn’t a selfish move. It’s about being wise with your money. If you make it a priority to have enough saved when you retire, your kids won’t have to worry about providing you with financial support later in life.

Be strategic with your financial gifts. Like other monetary goals, it’s important to add gifts of cash to your overall financial plan. When you treat cash gifts separately, you shortchange other priorities such as retirement. What will it cost you to divert savings from your retirement plan? With a complete list of financial priorities, you can see how much you need to save to reach them all.

Consider alternate approaches to helping your kids. There may be ways to help your kids other than by dipping into savings. Encourage them to take financial responsibility when they can do so. Your college-bound son or daughter may be able to take out student loans at a low interest rate, which will reduce or eliminate the amount you need to contribute for tuition. Instead of writing a check to help your child buy a car or house, you might co-sign on a loan to help them lock in a lower-interest rate or more favorable repayment terms.

Have conversations about money. Your willingness to talk about your finances is a valuable example for your adult children. So too is your attention to your retirement savings. I encourage parents to invite their adult children to attend a financial planning session with a financial advisor. It’s a time to address money concerns and explore how actions today can affect your future finances.

The Modern Money study was created by Ameriprise Financial, Inc. and conducted online by Artemis Strategy Group December 11-25, 2018 among 3,008 U.S. adults between the ages of 30-69 with at least $100,000 in investable assets. For further information and details about the study, including verification of data that may not be published as part of this report, please contact Ameriprise Financial or go to Ameriprise.com/modernmoney.

About Supal Vora

Supal Vora, A A M S ® , CRPC®, is a Private W e a l t h A d v i s o r and Chief E x e c u t i v e Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, Inc. He specializes in fee-based financial planning and asset management strategies and has been in practice for 16 years. Contact him at: www.pahalvoraandassociates.com, 904.571.1495, 401 West A Street, Ste. 2245 San Diego, CA 92101

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