Podshare: Special Needs Advanced Planning- 6 Pillars of Special Needs Financial Planning

Hosts Meghan (Smallwood) and Patrick (Cadigan) had a BUSY few weeks planning for their local Transition Fair (and other stuff) 😏. In the meantime, Ms. Elizabeth Larson from Special Needs Advanced Planning graciously gave permission to share out one of her quick informational sessions.  Ms. Larson talks about the core elements needed when considering financial planning. You can find the original video post here and more discussions from the Special Needs Advanced Planning team here.

Thanks again to Ms. Larson for permission to share out her work! 

Transcript

Elizabeth Larson 0:00

Having loved ones with disabilities, you know how important it is to ensure their long-term financial security and well-being, as well as your own. Now, from managing day-to-day expenses to ensuring a stable future, we believe that there are six essential pillars to create a holistic special needs financial plan. Financial planning, asset management, tax management, protection planning, special needs planning, and legacy planning. Now, whether you are just starting out on your journey or you're looking to refine your current plan, we want to help you navigate the complexities that come with special needs financial planning. Hi, my name is Elizabeth. And for all the quality information on all things special needs planning, make sure that you hit that subscribe button and that notification bell to make sure that you're alerted every single time that I post new videos. Now, the first pillar of a comprehensive special needs financial plan is exactly that. It's financial planning. Now, financial planning is the foundation of any robust strategy, and it involves assessing your current situation and creating a roadmap for the future in the most efficient manner. We call this the bucket plan, which is a simplified approach to financial planning with three buckets of money. You're gonna have a now bucket, assume bucket, and a later bucket. But what your buckets look like are gonna be different some than somebody else's because it depends on where you are in your life and your circumstances. Each person's objectives are unique, but one thing that everyone can benefit from is a plan of how you're going to reach your goals. Now, pillar two is asset management. And I think that we can all recognize that we want our money to grow at the greatest rate possible that we can get, right? I've never heard somebody say, I want my investments to perform at a lower rate than you can get for your other clients. And while this goal of maximum growth is somewhat universal, everyone's goals and objectives are different, as well as their appetite for risk and volatility and how their assets are composed. Now, maybe your money is mostly in your 401k that you've accumulated it in, and possibly a business that you own or maybe real estate. But our goal is to maximize the coordination of growth for all of your assets to meet with the objectives of pillar one, your financial plan. And for families with special needs members, it's vital to have a strategy that balances both growth and stability, providing financial security over that long term. Now, pillar three is tax management, and this involves understanding and utilizing tax benefits and deductions available for special needs families. It's not what you make, it's what you get to keep. And quite frankly, taxes are one of the largest expenses, not only each year, but when you think about over your lifetime bill, it can be overwhelming. That's why we focus on how to proactively manage and mitigate yearly and lifetime taxes to reduce your overall burden. It's about being tactical all year long with how you position your assets and taking advantage of opportunities that can help you keep more of what you've built, ensuring more resources are available for your loved ones. Now, pillar four is protection planning. For this is for all the what-ifs and blind spots in life. So protection planning helps keep you one step ahead. This includes basic insurance coverage like term insurance, disability insurance, umbrella policies, as well as home, auto, and property and casualty insurance. It could also be in the form of asset protection like special needs trusts. Protection planning ensures that your loved ones needs will be met even if you face unexpected health issues or if you're no longer around to provide care. It's about creating a safety net that covers all eventualities. Now, pillar five is special needs planning. Special needs planning is tailored specifically to the unique requirements of the individuals with disabilities. And this involves setting up special needs trusts to protect eligibility for government benefits, discussing guardianship and whether or not that's necessary, creating a detailed letter of intent. These tools ensure that your loved ones' financial, legal, and personal care needs are comprehensively addressed. And then there's pillar six, which is legacy planning. And this topic can be as difficult to talk about as it is important to talk about. But legacy planning is critical to answering three simple questions. When I'm gone, where does my stuff go? Who is in charge? And what are the rules? There's a lot of complexity to this. And as your situation is one of a kind due to your money, your beneficiaries, and your wishes. Some people want to leave nothing behind and die with zero left, while others know they must leave a legacy for their child or children that may never be able to financially take care of themselves. By focusing on these six pillars: financial planning, asset management, tax management, protection planning, special needs planning, and legacy planning, you can create a holistic and robust financial plan for your family. Each pillar plays a crucial role in ensuring the long-term security and well-being of your loved one with special needs. Now, I hope that you found this information to be helpful. And while there, yes, there are some general basics when it comes to special needs planning, it's important to remember that every family situation is different. And you should speak to an advisor with specialized knowledge in special needs planning for your individualized approach. Now, if you liked this information today, make sure that you hit that subscribe button and that notification bell so that you're notified whenever I post new videos. And please make sure that you share this with a frict. Also, if you liked what you saw today, make sure that you click on that link below to become a client so that we can begin coordinating your overarching financial plan with your special needs plan. Thank you for watching, and please remember that planning for your loved ones' future today makes for a confident tomorrow.