A common misconception about financial and estate planning is that it is only for professionals who are middle-aged and above. Many young adults assume that because they are healthy and just starting out with their careers, they do not need to meet with a financial or estate planner just yet. However, we know from our experience that this is not the case.
On a recent episode of our Wealth Matters radio show, Gaslowitz Frankel partners Craig Frankel and Robert Port discuss the importance of financial and estate planning for young adults with special guests Chloé A. Moore, CFP®, Principal & CCO of Financial Staples, Cherish de la Cruz, Esq, Partner at De la Cruz Law LLC, and Alicyn Mcleod, CPA / CFP® at Atlanta.Tax.
Here are some highlights from their discussion.
Why is Estate Planning Important for Young Professionals?
To start off this discussion, Cherish tells a story of one of her previous clients who had recently become unexpectedly widowed. Her husband, the breadwinner for their family, passed away without warning at just 32 years old. Prior to this tragedy, the family had not set up any type of financial or estate plan, leaving the wife to put all of the pieces together for herself and her two-year-old son — titling and locating assets, establishing guardianship and conservatorship, etc. Stories like these expose the uncertainty of life at any age, which is why setting up your estate planning documents sooner rather than later is essential.
“Plus, if they have a sudden death in the family, that is the most difficult time for the survivors to think rationally,” Craig adds. “You want them to use that time to grieve and take care of their loved ones.”
Why is Financial Planning Important for Young Professionals?
“A lot of people think and behave like they’re going to live forever and they have so much time on their hands,” explains Chloe. “Don’t wait to think about planning later on — the sooner the better.”
The point here is that many professionals middle-aged and above will tell you how much they wished they had started planning for retirement much sooner than they did. You are far less likely to regret planning for your financial future early on than you are to regret putting it off.
“What I’ve realized looking back is that time is on your side,” says Robert. “The value of accumulating money and allowing it to compound over time makes the world of a difference.”
What Role Do Taxes Play for Young Professionals?
Alicyn explains that taxes are actually the largest expense for anyone. “When you’re starting out in your 20s and 30s, if you can cut that down early on, the time horizon you have to invest and grow your wealth over time increases,” she says. “Whether you’re a C-level employee and you’re getting stock options from your company, or you’re starting a business and you want to know the best way to structure that from a tax perspective, getting those answers early on will set you up for success going forward.”
To learn more about the importance of financial and estate planning for young adults, watch the full episode of Wealth Matters here.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes representing individuals, executors, trustees, investors, shareholders, and corporate fiduciaries in complex fiduciary disputes involving wills, estates, trusts, guardianships, and businesses. If you are involved in a fiduciary dispute, contact us for a consultation.
