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Practical Planning Tip: Basics of Financial Planning - Beyond the Buckets

March 05, 2024

Today we will continue our discussion on the basics of financial planning by using the bucket approach. So, we already discussed all three buckets, the short, medium, and long-term. We will now discuss planning Beyond the Buckets: Remember, Not all financial planning fits within this three-bucket framework. Some additional important items that every family needs to discuss include life insurance, disability insurance, and long-term care insurance. Together, those can protect your bucket system should certain unfortunate circumstances arise by ensuring you don’t need to start liquidating your funds, which would derail you from achieving your goals.

There are also other tax advantaged accounts that should be explored, if relevant. This includes 529 college savings accounts to save for higher education and Health Savings Accounts (or HSAs) to save for healthcare expenses.

Finally, estate planning should be a part of every family’s strategy. This may come in the form of investing funds for beyond your lifetime to leave to loved ones or charity. However, it also comes into play with how you want your assets and affairs handled if you are no longer well or living. To ensure your wishes are properly carried out, every person should have a will, health care proxy, power of attorney, and advanced medical directive. There are also corresponding halachic documents for your estate plan. It’s worth speaking with an attorney who is familiar with both the legal and halachic aspects of these areas to ensure you plan appropriately.

For any viewer who made it through this series on financial planning, congratulations! You now know more about financial planning than the overwhelming majority of your friends and fellow countrymen! The next step is putting it into effect. Don’t procrastinate. Get it done today!

You can WATCH the full video here.