Mattson Financial Services - January 2020

F I N A N C I A L S E R V I C E S , L L C


January 2020

The Most Important Thing You Can Pass to Your Heirs PLANNING FOR THE FUTURE

The greatest thing we pass on to our loved ones isn’t money or assets. It’s actually the

Another year has come to an end. Now, not only are we welcoming in a new year, but we’re also welcoming in a new decade: the 2020s! (Now, are we calling it the twenty-twenties or the two-thousand twenties?) But my real question is where are all the flying cars? While we might not have flying cars, it is remarkable to see how far technology has come in the last 10 years alone. It’s astonishing to see how computers have gotten so small that we can carry them around in our pockets. Who knows what the next 10 or 20 years will bring? But as we look to the future, the best piece of advice I can give you right now is that in January 2020, you need to assess where you want to be in January 2021. Have you thought about changing jobs? If you are retired, have you thought about changing addresses? Or maybe you don’t want anything to change at all. You want to keep living the retirement you planned for. Well, I can tell you that whether you want change or want to avoid it, you still must plan. If you want to keep everything the same as it was last year, you have to plan how you’re going to maintain that lifestyle for the next year, the next 10 years, or the next 20 years. If you don’t plan, things can change very rapidly and slip out of your control. The No. 1 fear of retirees is running out of money. You need to look at the continuity of your plan and be able to adapt it for the changing world around you. We recently met with a person who was interested in becoming a new client. During one of our initial conversations, we learned why they were so disappointed with their previous advisor. It had nothing to do with the rate of return or how they were invested, or even the investment strategies. It was the lack of cohesion with their plan. It wasn’t built for the future or set up to give money to heirs in the way they wanted — and with as little tax implication as possible.

knowledge of how money works (coupled with the philosophy of maintaining low taxes!). In any plan, you need to have some focus on how you pass on assets to the ones we love — and include the knowledge of how those assets can work for them.

What if you have an IRA with $250,000 getting a 5% average return, and you pass that on to your children or grandchildren, and they take required minimum distributions? Over three generations, that initial $250,000 account will supply a total of about $1.3 million. That is, of course, if they know how to maintain the account. If you just pass on $250,000 as is, it becomes little more than a blip on their financial radar. It may sound harsh, but in the grand scheme of things, it won’t necessarily leave a lasting impression. But, going back to the first example, if you pass on an account — and the knowledge of how to maintain the account — you potentially give your heirs income for the rest of their lives. Every time they receive a monthly deposit from that account, they think of their parents or grandparents who made this possible. They remember you. That’s creating a legacy. As we begin a new decade together, I want to thank you for being with us over the last 30 years, whether you’ve been with us since that first year or just became a client last year. And thank you all who shared in our 30th-anniversary celebration. We celebrate you all and everything you’ve accomplished in these last 30 years. Here’s to a wonderful new year and a wonderful new decade. –Gary Mattson

They wanted to work with someone who would help them develop a cohesive plan that worked today and could work tomorrow.

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