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The Best Time To Start Your Planning Was Yesterday

We live in interesting times.  A bit like the movie title, “Everything Everywhere All at Once,” the pace of news and changes can feel a bit overwhelming and almost paralyzing.  Throw in an uncertain, turbulent, and ever changing political and economic environment, and the temptation starts to become to do nothing and wait it all out. We might hope that waiting will bring favorable changes that lower costs and simplify our planning, but this is simply wishful thinking.


When it comes to your financial and estate planning, it is important to resist that temptation and fight off the paralysis.  As we like to say, the best time to start your planning was yesterday.  The second best time is today.


Why?


To counter the above feeling, planning can actually give you control over your future, free from interference of outside factors, including elections.  This control doesn’t need to result in rigidity either, but when done correctly, your planning can actually include a high degree of flexibility to react and change as your life does.


And there is another reason.  We don’t mean to be rude, but none of us is getting any younger.  And while every day science produces some new medical marvel, the truth is we are all going to die.  Planning early leads to a host of benefits and means your plans will be carried out just the way you want them if something should sadly happen to you.


Let’s dive a little deeper into each of these ideas.


Maintaining Control Free from External Factors


One of the most significant advantages of early estate and financial planning is the control it gives you over your assets and legacy. By taking proactive steps now, you can shield your financial future from external factors such as political changes, economic instability, and unforeseen personal circumstances.


For example, changes in tax laws and government policies can significantly impact your estate and financial plans. With a presidential election just months away and the next Congress ready to engage in what is being called “The Tax Olympics” as portions of the 2017 TCJA expire, this threat has never loomed larger.  By working with a team of qualified professionals, you can develop strategies to mitigate these risks and ensure that your estate is structured in the most tax-efficient manner possible. Trusts, for instance, can provide protection against potential creditors and legal claims, preserving your assets for future generations.


Control is about more than tax policy, but also applies to your personal wishes if you are unable to express them yourself.  Early planning allows you to establish clear directives for your medical care and financial decisions in the event that you become incapacitated. By creating powers of attorney and advance healthcare directives, you can ensure that your wishes are followed, and your family is spared from making difficult decisions during a crisis.


Ensuring Flexibility


One of the primary benefits of early estate and financial planning is the flexibility it offers. When you start planning early, you have the opportunity to make thoughtful, deliberate decisions about your financial future and your estate. You can adjust your plans as your circumstances change, whether that involves career shifts, changes in family dynamics, or evolving financial goals.


For instance, purchasing life insurance when you are younger and healthier can lead to lower premiums and broader coverage options. You also have the flexibility to choose between different types of life insurance based on your long-term financial objectives. Early planning allows you to integrate these decisions seamlessly into your overall financial strategy, ensuring that your loved ones are protected and your financial goals are met.


You Are Not Getting Younger


Time waits for no one, and as we age, our financial and health circumstances can become more complex. Starting your estate and financial planning early can help you take advantage of the time you have now to build a robust financial foundation for the future. As we age, our health can deteriorate, making it more difficult and expensive to secure life insurance and other financial protections.


By planning early, you can also take advantage of compound interest, invest in growth opportunities, and build a diversified portfolio that can withstand market fluctuations. The earlier you start, the more time your investments have to grow, and the more secure your financial future will be. Additionally, early planning allows you to address any potential gaps in your financial strategy, such as saving for retirement, paying off debt, or funding your children’s education.


You Are Going to Die


As a guest in one of our favorite clips from our Planning Reimagined podcast noted, the reality is we are all going to die.  While it may seem morbid, acknowledging the certainty of death is a crucial aspect of estate and financial planning. 


None of us can predict when our time will come or the state of the financial, political, or regulatory environment at that moment, but we can take steps to ensure that our loved ones are taken care of and our wishes are honored after we’re gone. Without proper planning, your estate could be subject to lengthy and costly probate processes or facing a hefty estate tax bill without the liquid cash available to pay, leaving your loved ones with additional stress and financial burdens.


Creating a comprehensive estate plan, which includes a will, trusts, and life insurance, can provide peace of mind knowing that your assets will be distributed according to your wishes. Life insurance, in particular, can offer a financial safety net for your family, covering liabilities (including any potential estate tax liability), helping to fulfill your legacy wishes and equalize your inheritance, and providing for your loved ones’ future needs, irrespective of who holds office or what tax policies are in place. By addressing these matters early, you can ensure that your legacy is preserved and your family is protected.


Start That Planning Now


The constant change and somewhat crazy nature of modern times should not lead to you putting off your estate and financial planning.  Starting today allows you to take control of your financial future.


Planning now allows you to maintain control over your assets and shield them from external factors, allowing you to navigate the uncertainties of life with confidence and peace of mind.  Furthermore, the flexibility gained from early planning, coupled with the recognition that we are all aging and will eventually pass away, underscores the importance of taking these steps now. 


Don’t wait for the perfect moment to start your financial planning. The best time to begin is now. 


At Robin Glen, we use our expertise in income and estate tax, private capital, and insurance analysis and design to create unique solutions that deliver impactful results for our clients and advisor partners.


If you or your client have questions about the looming exemption sunset and how life insurance can play a role in planning, reach out.  We can help.

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