FINANCIAL FOCUS

In today’s unpredictable markets, many investors want to protect what they’ve worked hard for—without missing out on growth. That’s where an annuity can help. When thoughtfully included as part of your overall financial plan, annuities can bring stability, guaranteed income, and long-term peace of mind. What Is an Annuity? An annuity is a contract with an insurance company designed to help you grow and protect your money. You can use it to build savings over time or to create a steady income stream in retirement. It’s not a one-size-fits-all product—there are different types designed for different goals. Here is an overview of them: Fixed & Indexed Annuities: Focused on Safety These options protect your principal and provide predictable growth. Fixed annuities pay a guaranteed interest rate for a set period. Fixed Indexed annuities link potential growth to a market index (like the S&P 500) but still protect your original investment from market losses. They’re ideal for investors who value stability and protection over chasing market highs. Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty. Variable Annuities: Growth with Optional Protection Variable annuities keep your money invested in the market through subaccounts, offering greater growth potential—but also more risk. You can customize them with optional riders (add-on benefits) for: Lifetime income (a steady paycheck for life) Enhanced death benefits for your loved ones Long-term care or income protection options These can be powerful tools for people who want market participation with a safety net . Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered. Why Do People Choose Annuities? Income you can’t outlive (this is for FA’s and FIA’s not Variable) Tax-deferred growth on your earnings Protection from market downturns (depending on type) Customization for your goals and time horizon However, annuities come with fees and rules around withdrawals—so it’s important to understand the details before you invest. Our Approach at Boyce & Associates We believe every annuity should have a clear purpose in your financial plan —never as a “catch-all” product. That’s why we partner with dozens of top-rated carriers , not just one, to find the best solution for your specific needs. If you already own an annuity, it’s worth reviewing. Newer products often include better benefits and lower costs , and a professional review ensures your annuity still aligns with your goals. Only a portion of your retirement savings should be used to purchase an annuity. You want most of your money growing inside your brokerage accounts. This is why we always demonstrate how this looks in your financial plan. The Bottom Line Annuities can offer balance, predictability, and lifetime income , but they’re most effective when used intentionally. Knowing what you own and why you own it can make all the difference. You want to design these so you can access your income at the right time. If you’d like to explore how an annuity might strengthen your retirement plan—or review one you already have— our team is here to help you make confident, informed decisions.

Life will always throw curveballs- it’s not a matter of if, but when. The question is, will you be prepared when financial storms come your way? Having a solid, secure financial plan is less about predicting the future and more about being ready for uncertainty and building a foundation that gives you confidence. Building a Confident Financial Plan A strong plan puts you in a position of strength. Preparation doesn’t stop the storm, but it helps you act with clarity instead of panic. Without one, people often find themselves dipping into savings, relying on credit, or feeling overwhelmed by stress. These are warning signs that your financial health may need attention and that you may be reacting instead of leading your financial life. Similarly, preparation today ensures that no matter what happens- rising inflation, interest rate hikes, or even geopolitical shocks- you are not caught off guard. When you’ve already thought through possible scenarios, you can respond wisely instead of scrambling for quick fixes. Steps to Get Started 1. Get Clarity on What You Want. Start by asking: Does my money reflect my priorities? Review your spending over the last three months without judgment. This exercise will reveal whether your dollars are working toward your goals or drifting elsewhere. 2. Define Your Goals. What do you truly want your life to look like? A confident plan aligns your finances with your dreams—whether that’s building wealth, securing retirement, funding education, or creating meaningful experiences with family. Hope is not a strategy; clear goals are. 3. Make Your Money Work for You. Once you know what matters most, position your money intentionally. That could mean saving systematically, investing for long-term growth, or using insurance to preserve what you’ve built and provide stability no matter what comes your way. Take Action Now Most people don’t fail because they made bad decisions—they fail because they made no decisions. Inaction comes at a cost, while small, purposeful steps build confidence and momentum over time. Your financial future doesn’t have to feel uncertain. By crafting a plan now, you create security, resilience, and the ability to face life’s storms with strength, knowing you’ve taken intentional steps to protect your future.

Investment management is the professional oversight of assets with the objective of meeting specific financial goals. It includes portfolio construction, risk management, and alignment with an individual’s financial plan . While portfolio growth is important, the primary purpose of investment management is to ensure that capital is allocated intentionally to support long-term financial confidence, rather than focusing on short-term market gains.  At Boyce & Associates Wealth Consulting , our philosophy centers on capital preservation and clear alignment with each client’s financial objectives. The sections below outline the definition, principles, and strategies that inform effective investment management, and clarify its primary goal. Investment Wealth Management Definition Investment wealth management is the process of managing a person’s financial assets that support their long-term goals. It involves making decisions about where to invest money, such as in stocks, bonds, or other assets, based on the client’s financial situation, risk tolerance, and objectives. At its core, investment wealth management combines portfolio oversight with a broader financial plan. This involves building and managing an investment strategy while also considering factors such as retirement timelines, tax implications, income needs, and estate planning. The goal is for every investment to support the client’s overall financial picture. Main Goal of Investment Management The goal of investment management is to grow and preserve wealth that supports an individual’s financial objectives. It is not about chasing the highest returns or reacting to market trends. Instead, it focuses on intentional growth within a disciplined and risk-managed strategy. At the center of this approach is principal protection , a priority for many individuals and families, especially retirees, business owners, and those with significant assets. Preserving the money you’ve already earned is often more important than trying to maximize gains. Effective investment management is part of creating a plan for the life you want . For example, someone nearing retirement may need to generate income from their investments while also ensuring their savings last. Their portfolio would likely include a mix of conservative investments, structured withdrawals, and tax-aware planning, all aimed at supporting a stable lifestyle rather than chasing aggressive market gains. Examples of Investment Goals Across Different Life Stages Early Career : Building savings for future goals, such as buying a home or starting a family. Mid-Life : Growing assets for retirement, funding children’s education, or investing in a business. Pre-Retirement : Reducing investment risk, increasing cash flow, and preparing for healthcare costs. Retirement : Generating reliable income, minimizing taxes, and preserving against outliving savings. Legacy Planning : Preserving wealth for future generations, supporting charitable giving, and managing estate transfer. Each of these goals requires a tailored investment approach that aligns with the client’s stage of life, priorities, and risk tolerance. Why Do People Go Into Investment Management Many people turn to investment managers when their financial situation becomes more complex or when they want help making informed, long-term decisions. Common reasons include: Lack of time or expertise Most individuals lack the time to research markets or manage risk independently. They want a professional to handle the details so they can focus on work, family, or personal priorities. Need for tax-efficient strategies As income and investments grow, so does the need to manage taxes. A thoughtful investment plan can help reduce tax impact and improve after-tax returns over time. Increased financial complexity Life events, such as retirement, divorce, inheritance, or selling a business, bring new financial challenges. Investment management provides structure and support during these transitions. Outgrowing DIY investing Many start by managing their own investments, but eventually seek expert guidance to preserve what they’ve built and ensure their portfolio aligns with long-term goals. Professional investment management brings clarity and coordination, especially when wealth, responsibilities, or financial risks increase. 4 Principles That Guide Successful Investment Management A successful investment management strategy is built on four core principles: Philosophy, Process, People, and Performance . These elements provide structure and consistency in managing wealth over time. 1. Philosophy Investment philosophy is the guiding belief behind how money is managed. It reflects the approach taken toward risk, returns, market behavior, and decision-making. A well-defined philosophy helps ensure that investment choices are made consistently, even during periods of market uncertainty. 2. Process Process refers to the step-by-step method used to design, implement, and monitor an investment strategy. This includes the selection of investments, the adjustment of portfolios over time, and the management of risks. A clear process supports disciplined decision-making and reduces the influence of emotion or short-term market noise. 3. People Investment management involves human judgment and relationships. The “people” principle highlights the importance of experienced professionals who understand the financial landscape and the client’s personal goals. Trust and effective communication are essential to building a long-term, effective advisory relationship. 4. Performance Performance measures how well an investment strategy meets its intended goals. It’s not just about returns, but about achieving outcomes in line with the client’s timeline, risk tolerance, and objectives. Long-term, goal-based performance is more meaningful than short-term market results. What Makes a Strategy Effective? Investment Goals and Examples An effective investment strategy should consider not only potential returns but also stability, flexibility, and alignment with personal objectives. Investment goals often vary based on life stage and responsibilities. Below are examples of common goals and the types of strategies that can help support them: Funding retirement by a certain age A long-term, diversified portfolio focused on stable growth and income can help ensure that assets are available to support lifestyle needs in retirement. Preserving wealth across generations A strategy that includes tax planning, risk management , and estate coordination can help ensure assets are transferred efficiently and remain preserved. Creating passive income streams Investments such as dividend-paying stocks, bonds, or real estate can be used to generate regular income without depleting the principal. Each of these goals requires a customized investment plan . There is no one-size-fits-all solution. A strategy is effective when it is realistic, carefully managed, and flexible enough to adjust to changing life circumstances. Investment Strategies for Wealth Management Below are four core strategies commonly employed in well-structured portfolios. Each strategy plays a distinct role in managing risk, enhancing returns, and keeping investments aligned with personal objectives. Asset allocation Asset allocation is the process of dividing investments among various asset categories, including stocks, bonds, and cash. The goal is to balance risk and return based on the investor’s timeline, financial goals, and level of risk tolerance. For example, a younger investor might hold more stocks for growth, while someone near retirement might shift toward bonds for stability and income. Diversification Diversification refers to spreading investments across a range of assets, industries, and regions. A stock that is spread out is better prepared to handle market fluctuations while still pursuing long-term growth. AA/Diversification Disclosure Neither Asset Allocation nor Diversification guarantees a profit or protects against a loss in a declining market. They are methods used to help manage investment risk. Tax-loss harvesting Tax-loss harvesting involves selling stocks to offset tax liabilities resulting from gains from other investments, thereby balancing out the value of these gains. This strategy helps reduce capital gains taxes and can improve after-tax returns. The proceeds from the sale are often reinvested, making similar, but not identical, purchases to keep the portfolio’s overall strategy. Rebalancing Rebalancing means adjusting the portfolio to bring it back in line with the original investment plan. Over time, some investments may grow faster than others, shifting the balance of the portfolio. Rebalancing Disclosure Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy. Frequently Asked Questions About Investment Management What is the 10 5 3 rule of investment? The 10-5-3 rule is a basic guideline that reflects average long-term returns for different types of investments: 10% return from stocks 5% return from bonds 3% return from cash or savings These are not guarantees but estimates based on historical performance. The rule helps set realistic expectations and shows how different investment types carry different levels of risk and reward. It's especially useful when planning long-term goals, such as retirement. What type of investment is best for beginners? For most beginners, the best investments are those that are easy to understand, low-cost, and widely diversified. Common starting points include: Index funds: These track the overall market and are simple, low-cost options. Target-date funds: These automatically adjust the investment mix based on your expected retirement year. Robo-advisors: These offer automated portfolio management with little setup. MF/ETF Disclosure: Mutual Funds and Exchange Traded Funds (ETF’s) are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. An investment in the Fund involves risk, including possible loss of principal. Your goals, risk, and other factors will help you make the best decision on how involved you want to be. Starting with a simple, balanced approach is often the most effective way to proceed. What is the safest investment with the highest returns? No investment is completely risk-free, but some are considered safer than others. Typically, U.S. Treasury bonds, high-yield savings accounts, and certificates of deposit (CDs) are among the safest options. However, safety often comes at the expense of lower returns. If you're seeking higher returns with limited risk, a diversified portfolio that combines stocks and bonds may offer a balanced solution. It’s essential to find the right balance based on your timeline and comfort level with risk, rather than prioritizing the highest return alone. Tax/Legal Disclosure Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult a professional regarding your individual circumstances. Blog Disclosure This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. (FirmName) does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

When business owners seek an accurate valuation of their enterprise, choosing a qualified professional is crucial. Among the credentials available in the valuation industry, the Certified Valuation Analyst (CVA) accreditation, granted by the National Association of Certified Valuators and Analysts (NACVA), stands out as one of the most respected and comprehensive. Here’s why employing a CVA-accredited expert is the best decision for any business owner looking to determine the true value of their business. First, CVAs undergo rigorous training and a demanding examination process that ensures they possess deep expertise in valuation principles, market analysis, and financial statement assessment. This specialized knowledge goes well beyond basic accounting or financial analysis. NACVA’s ongoing education requirements mean that CVAs stay current with evolving valuation standards, tax laws, legal precedents, and industry practices. Second, the credibility and professionalism of a CVA-accredited expert are recognized in various legal and financial settings. Courts, regulatory bodies, banks, and investors often demand valuations prepared by experts with certifications like the CVA, as these provide the added assurance of objectivity and methodological soundness. When selling a business, applying for a loan, addressing shareholder disputes, or complying with IRS requirements, a valuation report signed by a CVA can withstand intense scrutiny and enhance stakeholder confidence. Additionally, NACVA enforces a strict code of ethical conduct for its members. Business owners can trust that a CVA will maintain independence, confidentiality, and transparency throughout the valuation process. This professional integrity reduces the risk of conflicts of interest or biased results, ensuring that valuation conclusions are fair and impartial. Lastly, a CVA takes a holistic approach, considering not only historical financials, but also industry trends, economic conditions, intellectual property, and operational strengths and weaknesses. This comprehensive view results in a more accurate and defensible valuation— critical for strategic planning, mergers and acquisitions, succession planning, or litigation support. In summary, engaging a NACVA-accredited CVA provides unparalleled expertise, credibility, ethical assurance, and a robust valuation process. Your business is not only a source of income, but also your life’s work. It can be your most valuable personal asset. You’ll want to have an accurate understanding of its value, and a CVA can provide that.

Hiring someone to invest on your behalf is a decision with long-term implications for your financial confidence. It goes beyond seeking higher returns; it’s aligning your investment strategy with your specific goals, risk tolerance, and time horizon. Yet, many individuals enter this process with unclear expectations or an incomplete understanding of what a professional investor actually provides. According to research, such as The Women’s Guide to Successful Investing , clients often face challenges evaluating competence, navigating fees, and identifying real value. Without clear criteria, it’s easy to overpay or choose someone based on sales ability rather than fiduciary responsibility. This guide is designed to provide a practical framework for determining whether hiring a professional is the right choice for your situation. It will help you ask better questions, challenge common assumptions, and decide with confidence. 1. Know What a Professional Investor Actually Does Hiring a professional to invest your money doesn’t just mean handing it over to someone who picks stocks. A competent investment professional is responsible for managing your money in a manner that aligns with your financial goals, risk tolerance, and time horizon. Their job often includes: Building a diversified portfolio based on your personal situation Rebalancing investments when markets shift or your life changes Managing risk to help preserve your money in both good and bad markets Improving tax efficiency through strategies like asset location or tax-loss harvesting Providing guidance during market downturns to help you avoid emotional decisions In short, they’re helping you build a plan, not just a portfolio. If someone focuses only on beating the market without understanding your needs, that’s a red flag. Rebalancing Disclosure Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy. Diversification Disclosure Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. 2. Get Clear on Your Goals and Timeline Before You Talk to Anyone Before hiring someone to manage your investments, you need to be clear on what you’re trying to achieve. This involves defining your financial goals and establishing a timeline for achieving them. Ask yourself: When do I want to retire? Will I need to support children or aging parents? Do I want to buy property or start a business? How much risk am I willing to take to reach these goals? Goals give direction; timelines give structure. If you're unsure about either, focus on that aspect before seeking outside help. 3. Understand the “10/5/3 Rule” and What Returns You Can Reasonably Expect The “10/5/3 Rule” is a simple way to set realistic expectations for investment returns: 10% average return for stocks 5% for bonds 3% for cash or cash-equivalent assets These are long-term historical averages, not guarantees. Actual returns will vary year to year, sometimes widely. But the rule is helpful because it helps you frame what’s realistic over time. For example, if you have $2 million invested in a balanced portfolio and plan to withdraw 4% annually (or $80,000), the 10/5/3 rule suggests that this strategy could be sustainable, especially in a lower-cost area like Texas, where income stretches further. The key point: If your expectations are too high, you might take unnecessary risks. If they’re too low, you might miss opportunities. A good investment professional helps you find the right balance. 4. Evaluate Advisors Using the 3 C’s: Competence, Compensation, and Chemistry When selecting someone to manage your investments, consider three key factors: competence, compensation, and chemistry . Competence means they possess the necessary knowledge and experience to manage your finances effectively. Look for certifications like CFP® (Certified Financial Planner) or CFA® (Chartered Financial Analyst), and ask how they make investment decisions. Do they use a clear process? Have they worked with individuals in a similar situation before? Compensation reveals how they are compensated, and it influences the advice they provide. Fee-only managers get paid a flat fee or a percentage of your assets, while others earn commissions from selling financial products. Always ask for full transparency. A professional should explain their fees in plain language. Chemistry matters more than people think. You need to feel comfortable sharing your financial life and asking tough questions. If the advisor talks over you, avoids your questions, or seems more interested in selling than listening, move on. 5. Ignore the Noise: You Don’t Need Millions or a Finance Degree to Hire Smart Help Many people assume professional investment advice is only for the wealthy. That’s false. If you’re building savings, preparing for retirement , or facing major decisions like selling a business or receiving an inheritance, you may benefit from guidance, regardless of your net worth. You also don’t need to be a financial expert. A good advisor translates complex information into clear steps. What matters is that you’re willing to engage, ask questions, and follow through on a plan. In fact, some of the most successful long-term investors are people who knew when to delegate. Hiring help isn’t about giving up control; it’s about getting support where it matters. 6. Understand What You’re Paying For, And Whether It’s Worth It Professional investment help comes at a cost, but the value should outweigh the fee. Many advisors charge around 1% of the money they manage for you each year. On a $1 million portfolio, that’s $10,000 per year. While that may seem high, it’s important to ask: What do you get in return? A qualified advisor should help you: Stay invested when markets are volatile. Manage taxes where possible. Align your money with your long-term goals. Avoid costly mistakes, like withdrawing at the wrong time or taking too much risk. If they’re only picking investments and not offering broader support, the value may not be worth the cost. Ask for a breakdown of services. If the answers aren’t clear or specific, keep looking. 7. Know the Downsides: When Hiring a Professional May Not Be the Right Call Hiring a professional isn’t always the best option. In some cases, it may add cost without adding real value. Here are situations where hiring someone might not make sense: You have a simple portfolio (e.g., low-cost index funds) and prefer to manage it yourself. You’re financially literate by making your own investment decisions. The advisor doesn’t offer services beyond investment selection , like tax planning, retirement strategy, or estate coordination. Also, some advisors charge high fees but offer limited personalization. Others may sell financial products that benefit them more than you. If an advisor focuses heavily on sales or doesn’t take time to understand your whole situation, that’s a warning sign. In short, professional help should bring clarity, not confusion. If it doesn’t feel aligned with your needs, it’s okay to walk away. 8. The “7% Rule” and How Professionals Help You Make Smart Withdrawal Decisions The “7% rule” refers to how much income you might safely withdraw from your investment portfolio each year. Many experts consider a range of 4% to 7% to be a reasonable target, depending on your age, asset mix, and market conditions. For example: Withdrawing 4% annually from a $1 million portfolio equals $40,000 per year. A 7% withdrawal would result in $70,000, but with a higher risk of depleting funds too early. Professionals help you find the right number tailored to your specific needs. They consider: How long do you need the money to last Market volatility and inflation Tax consequences of withdrawals Other sources of income, like Social Security or rental property Without a plan, it’s easy to overspend in good years or panic in bad ones. A professional helps smooth those decisions, so your income is both reliable and sustainable. SSA Disclosure Not associated with or endorsed by the Social Security Administration, Medicare, or any other government agency. 9. Not All Professionals Are the Same: What You Need to Ask Before You Hire Not every advisor offers the same services, adheres to the same standards, or receives the same compensation. That’s why asking the right questions is essential before you make a commitment. Key questions to ask: Are you a fiduciary 100% of the time? (This means they are legally required to act in your best interest.) How are you paid? (Fee-only, commission, or a combination?) What services do you provide beyond investment management? Who will I be working with on an ongoing basis? Can you explain your investment philosophy in plain language? The answers should be specific, clear, and make sense to you. If you’re getting vague responses or feel pressured, that’s a sign to keep looking. Choosing an advisor isn’t about picking the “best” on paper; it’s about finding someone whose advice aligns with your goals and values. Conclusion: Make the Decision That’s Right for You Hiring someone to handle your investment management is a personal decision that depends on your goals, confidence, and the complexity of your needs. There’s no single right answer; only the one that best fits your situation. If you decide to work with a professional, make sure you understand what they do, how they’re paid, and whether their services match what you actually need. Look for someone who adds value beyond just picking investments, someone who helps you make smart decisions, stay on track, and adjust when life changes. If you choose to manage your investments yourself, that’s valid too, as long as you have a plan and stick to it. Either way, the goal is the same: to grow and preserve your wealth with intention. Clear thinking is what leads to better outcomes. Tax/Legal Disclosure Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult a professional regarding your individual circumstances. Blog Disclosure This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results .

On July 4th Donald Trump signed the One Big Beautiful Bill Act (OBBA), a law which extended many of the tax code changes made in the 2017 Tax Cuts and Jobs Act (TCJA) and added new provisions that will impact many of our clients. The bill totals a whopping 870+ pages so I’ll try to be as concise as possible.  Lets begin with the extension of tax breaks. The TCJA reduced federal tax bracket rates in 2017 and those lower rates were set to expire at the end of 2025. The OBBA made permanent the reduction in federal tax brackets. Below is a comparison of what rates would have been post TCJA without this permanent extension.

Retiring with $2 million is a milestone many Americans dream of reaching, but what that money actually provides depends heavily on where you live and the lifestyle you envision. In Texas, where the cost of living can vary significantly by region, $2 million can open up a range of retirement possibilities, from modest and stress-free to comfortably upscale. The cost of housing alone can make a significant difference in how far your nest egg stretches, whether you're pursuing upscale city living in Austin or a more relaxed, budget-friendly lifestyle in places like Amarillo. To illustrate this variation, here’s how median home prices and lifestyle considerations differ across several Texas cities:

Estate planning is one of the most foundational steps you can take to protect your legacy and loved ones. Unfortunately, many people make costly errors that create confusion, delay, and unintended consequences. Here are the ten most common estate planning mistakes to avoid: 1. Not Having a Plan Dying without a will or trust means state laws dictate who inherits your assets, often leading to outcomes you never intended. Do not let the courts decide. 2. Failing to Update Documents Life changes — like marriage, divorce, or the birth of a child — require updates. Outdated plans can send assets to the wrong people. You should update every 5 years at the minimum. 3. Not Planning for Incapacity Without a durable power of attorney or healthcare directive, your family may need court intervention to manage your affairs if you're incapacitated. This makes sure someone can pay your bills while you are not able to. 4. Choosing the Wrong People or too many people Naming an untrustworthy or incompetent executor, trustee, or agent can lead to mismanagement, delays, and legal disputes. Having multiple trustees or executors makes decision making difficult. 5. Ignoring Beneficiary Designations Retirement accounts and insurance policies bypass your will. If designations are outdated, assets may go to unintended recipients. I have heard of ex-spouses receiving tax-free insurance payout and not the current spouse. Check the beneficiaries every year. 6. Overlooking Tax Implications Failing to consider estate or gift taxes can shrink your legacy. Strategic gifting and trusts can minimize tax burdens. In 2025 the lifetime estate and gift exemption is $13.99 million per person. However, if Congress does not do anything, the exemption amount goes down $7 million on January 1, 2026. If your estate is more than the exemption it will be taxed at your tax rate. Example: If you pass in 2025 and your estate is $15 million, the taxable amount is $1.01 million. You would owe $404,000. In 2026, if nothing changes, your tax would be on $8 million. You would owe 40% on $8 million, $3.2 million in taxes. 7. Fund your Trust Trusts can avoid probate, ensure privacy, and manage inheritances over time. Without them, assets may be misused or delayed. Make sure you title what you can in your trust or put as beneficiaries if necessary. Consult your lawyer and make sure they walk you through how to retitle property and investments in the Trusts name. 8. Forgetting Digital Assets Without access to online accounts and passwords, heirs may lose valuable financial and sentimental property. Even if you are in the hospital incapacitated, who is going to keep paying the monthly bills. Have a plan! 9. Leaving Assets Directly to Minors Minors can't legally own property. Without trust, courts step in — and full control often transfer at age 18. If you have trust, you will have the trustee manage the assets for the minors. You have more control from the grave with a Trust. Feel free to put in there that they must be debt free other than a mortgage for a year or get an education. They must complete it before a trustee releases the funds. I do not want my 18-year-old getting a lot of money right away! 10. Going DIY Without Legal Help Online forms can’t replace personalized legal guidance. Mistakes here often cost far more than hiring an expert. Here is a real-life example, A man drafted his own will. He was divorced and had 6 kids. In the will he stated that his kids would each get 1/6% of the estate and his ex-wife would have the remainder. The kids collectively only got 1% (1/6*6), the ex-wife got 99%. All because of a percentage symbol. Just be careful. Spending the money now will save you in the long run. Avoiding these mistakes ensures your legacy is secure and your wishes are honored.