Finance 9. Giving: craft a strategy. Or not. As we move through our golden years, our minds naturally shift from making more money to giving more of it away – to family, to causes which we care about, and to charities and organizations that have made a difference in our lives. While the topic of charitable giving is vast, at its most basic, it comes down to a crucial decision: whether we want to be reactive or proactive in our giving. Do we want to give as a response to immediate needs which we see, or do we want to establish a detailed strategy for our giving and donate in a structured, planned way. There are pros and cons to each of these approaches. The reactive approach is by far the simpler one, and it allows you to target specific causes that might need more help right now, as well as to adjust the amount which you give according to your personal circumstances. On the other hand, by taking a proactive approach, you can often take advantage of specific tax benefits and giving vehicles that can amplify the impact of your gift. More strategic giving can also provide the opportunity to make much more sizeable gifts and create foundations or endowments that can last for many years after you pass away. 11. Professional help: decide whether you need it Many snowbirds derive great satisfaction from managing their money: they take pride in their financial house being in order, in thinking about and enacting various financial strategies and in making profitable investment choices. But many more take no particular satisfaction in these things at all – in fact, they find the entire subject complex and arcane, and they’d much rather “outsource” some, or all of the difficult stuff to someone else and get on with their lives. As the last item on your priority list, ask yourself into which of these two groups you fall. If the former, then commit to the effort of developing your financial knowledge and your investment-picking acumen. If you belong to the latter group, then make it a priority to find a qualified financial professional who can help guide you through the challenges and opportunities of managing your money during retirement. 10. Estate planning: just get it done Of all the topics within financial planning, estate planning is probably the one that’s most often overlooked. This is partially because it’s complex, time-consuming and often costly. It’s also partially because it’s somewhat distasteful – who wants to think about their eventual demise? And it’s partially because it doesn’t really come with the same sense of gratification as picking a winning stock, for instance. Yet it remains one of the most important financial priorities of all, with grave consequences for not getting it done. If we don’t invest the time and effort in crafting a proper, professionally written will and estate plan, we risk losing family assets to the taxman, or causing unnecessary legal hassles, delays or family arguments. We have a responsibility to ensure that this doesn’t happen. All of which is to say: if you haven’t made it a priority yet, you need to adapt a “just do it” attitude and get it done now. If you haven’t written your will, write it. If you haven’t reviewed your will in several years, review it. If you haven’t told family about your intentions or what you’d like to do with your personal effects, start communicating. If you own a business and haven’t figured out a succession plan, put your mind to it. And, if you don’t know where to start with any of this, talk to a qualified estate professional and get the ball rolling. Ask yourself: are their family members, causes or organizations which you’d like to support? Make a rough estimate of how much, and when you’d like to give Think about whether you’re more of an “ad hoc” giver, or if you’d like to take a more structured approach If you’re planning a larger gift, seek out professional advice on the best way to accomplish it If you don’t have a will and/or power of attorney document, make creating these a priority If you do have a will, ensure that it’s accurate and reflects your current life situation Revise your will with a qualified professional and bring it up to date Schedule an estate review every two to three years If you own a business, formulate a succession plan Determine whether you enjoy looking after your finances, or if you'd rather ask a professional to do it for you Ask yourself whether you could benefit from a second opinion about financial matters and investments Shop around for reputable financial professionals who specialize in financial planning for retirees Seek out a referral from friends and family CSANews | WINTER 2023 | 33
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