Page 21 - BusinessWest June 13, 2022

Being Proactive
Take Steps Now to Avoid Potential Problems Down the Road
By Michael Matty
Summertime. Our thoughts turn to qual- ity time: time at the beach with family, picnics, weddings, graduations, and get-
togethers. Lots of quality family time. The time together is irreplaceable. But is there some- thing more you can do to help your family beyond spending time for get-togethers?
We think the answer to this question is almost
ing these important steps. But all too often, we see mistakes being made that we’d like to help address.
What types of mistakes do we see?
One of the most frequent involves the client making the emotional promise to help a family member without finding out whether or not they can afford it first. We get it, the kids are asking
could you have done instead?
Tell the kids you’d love to help, but will have
to see what you can afford first. Call your finan- cial advisor before you make the commitment
to them. Advisors can help calculate what level
of assistance you can provide without derailing your own situation. In addition to how much you can afford, they may be able to help you struc- ture the best manner to provide it — for example, as a loan, a one-time gift, a gift over time, or as a co-owner.
Finally, when it comes time to raise the funds, advisors will try to find the most tax efficient manner for you to accomplish the goal-and the more lead time we have, the more likely it is that we can find a better solution for you and your family.
Another mistake that we see is the aging fam- ily member who fails to get their financial affairs properly organized. If you have ever had to serve as caretaker for an elderly relative, or as execu- tor for an estate, you know how absolutely over- whelming this job can be.
What can you do to help ease the burden on your spouse or children? As it turns out, quite a bit. First, assemble your team: a financial plan-
“Tell the kids you’d love to help, but will have to see what you can afford first. Call your financial advisor before you make the commitment to them.”
for help in buying their first house.
Over a beer and burger at the family picnic, they asked if you might be able to help with the down pay- ment. In the warmth of the sun on the patio, it sounded like a great idea and you promised — but now the pressure is on because the perfect place “just came on the market and is going to
certainly a resounding yes.
As financial planners, we often get intimately
involved in family matters. Some are joyful, such as weddings, assisting with home purchases
for children, and tuition funding for grandchil- dren. Others are less joyful, involving advanced medical care and estate planning. Either way, we are honored with the trust placed in us regard-
sell fast.” You don’t want to disappoint the kids, need the cash now, and want to do whatever you need to help.
Maybe you pull some money out of your IRA, or liquidate some stocks ... either way, this ‘assis- tance’ may have just cost you a sizeable tax bill. In addition, you may have just diminished your own chances for a secure retirement. So what
To see how we can help your
Mistakes
business, call 860.265.3920. Continued on page 45
Commercial Lending Term Loans n Lines of Credit n Commercial Real Estate Loans n Letters of Credit n SBA Loans
Having a vision for your business is great.
Adding our insight?
You don’t just want a loan. You want solid advice from an experienced business banker. You want a fair rate, flexible terms, and local decisions by a bank that’s invested in your community and your success. That, plus a whole lot more, is what you can expect from Westfield Bank. That’s better.
How can we help your business? Call 860.265.3920.
What better banking’s all aboutsm.
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