Making Financial Decisions When You Don’t Have Any Beneficiaries
By Anica Oaks
When most people think about financial planning, they’re looking at what they want to leave behind. Some people, though, aren’t looking to leave behind beneficiaries at all. If you’re planning an estate without worrying about beneficiaries, there are a few key steps you can make to maximize the efficacy of your financial plans.
Look at Your Goals
The first step in making sound financial decisions is always looking at your goals. While many with beneficiaries want to make sure that they leave behind something for their heirs when they pass, you have the options of defining your goals a bit more broadly. This doesn’t mean that you have to plan to leave nothing behind, but it does allow you to focus more on yourself when you’re putting together your initial plan.
Maximize Current Funds
Your next goal is to maximize your funds. Your goal is to stretch your money, of course, but you don’t have to worry about leaving behind emergency money. Looking into “sell my life insurance” programs (read “A Client’s Life Insurance Policy Can Help Pay for Their Care”)or programs that allow you to cash in on the equity in your home are both good ways to allow you to maximize the money with which you have to work.
Always remember that you need to hold some money back for yourself. You want to make sure that your financial plan keeps you as comfortable as possible for as long as possible. This does mean still looking at investing with an eye towards retirement, but you’ll be able to move forward knowing that you’re going to put the bulk of what you save towards your very specific goals. Financial planning for those without beneficiaries is still a process of making sure they are comfortable after their careers are done.
Leave a Legacy
Finally, remember that a lack of beneficiaries does not mean that you can’t plan to leave money or property behind. Research the causes and organizations that mean the most to you and figure out the structures that will allow you to leave the legacy that you desire. While those without beneficiaries may not feel quite as obligated to leave their wealth to someone else, they still have the option to leave a lasting financial contribution.
Planning for a future without beneficiaries is very similar to planning for a future that involves them. You’ll still want to make sure you have enough money to live after retirement, but you’ll have to worry less about burdening others if things go wrong. Best of all, though, you’ll have the freedom to decide more about your future without having to worry about taking care of others.