In this era of information, where social media is in everyone’s grasp, you can find answers to any question- all a Google search away. However, despite having all this information sometimes, most of it is just useless or not even correct.
Keeping this in mind, coupled with the rising need for proper money-related guidance, we will discuss the 2 common pieces of advice that need to be ignored, as uncovered by financial planner, Malik S. Lee.
Revocable Living Trust
Revocable Living Trust is a document that is created by an individual dictating how their assets are to be divided following their death or incapacitation. It can be altered at any given time. The common idea is to make sure you have a Revocable Living Trust but the truth is, not every financial advice is good advice given the fact that everyone has different situations and circumstances.
This is most definitely not a ‘one-size-fits-all’ situation. The Revocable Living Trust can be great for a lot of people and it can help significantly with getting rid of the court filing fees and attorney fees. However, there is also a very likely chance that the cost of probate could be less expensive than setting up a trust.
If you are more concerned about protecting your finances, then you should invest in establishing a durable power of attorney, which can be far more benefitting than the trust.
Target Date Funds
Target date fund is an investment fund that has the ability to change the direction of your investment as you reach your retirement years, from high-risk and high reward to low-risk and low reward. Rather than leaving the money idle in your bank account, this is one of the ways you can put it to good use. Target date funds follow the ‘set-it-and-forget-it’ strategy.
These funds let you invest with regards to the age you want to access your money. If it’s 40 to 50 years from now, you are in the right position to create enough revenue to meet your needs. Surprisingly, most Americans are not prepared for retirement and haven’t even considered saving up for it either. If you’ve started late on saving up for the resting years, you would need to probably take more risks for higher returns to make up for the lost time and catch up before your retirement.
Many employer-sponsored plans have limited investment options because they’ve already narrowed down to the best plan for you. If you feel the need for extra support or guidance, you can always reach out to a professional financial planner.
