Financial Planning

What You Can Learn from the Big Game

January 30, 2024

Sometimes a Good Defense is the Best Offense

The San Francisco 49ers face off against the Kansas City Chiefs in the Big Game on February 11th in Las Vegas, Nevada, and defensive strategies will play a critical role in determining the winner.

Defensive strategies are also essential for your wealth plan and keeping your ‘home team’ protected. Here are some examples:

Trusts. Trusts are important tools in most estate plans. A revocable trust (also known as a living trust), for example, is a way to keep your assets out of probate, which can be expensive and time consuming for your heirs, as well as, keeping your estate matters private. Funded irrevocable trusts can remove assets from your taxable estate and protect assets from creditors, even in professional malpractice suits. Irrevocable, special needs, and insurance trusts meet different types of needs. We’ll work with you and your legal advisor to help craft a plan that’s appropriate for your family’s situation.

Retirement Savings Accounts. For 2024, individuals may contribute up to $23,000 ($30,500 for those age 50 years old and up) into a 401(k), and $7,000 (if you are age 50 or older, you may contribute an additional $1,000 for a total contribution limit of $8,000) in an IRA or Roth IRA, (please keep in mind there are IRA income limitations)i. Assets in a 401(k) or IRA are protected by anti-alienation rules, meaning they are safe from lawsuits or claims or creditors. IRA’s have many different tax implications like when making contributions and taking distributions, so please reach out to discuss your personal situation. If, over the years, you find yourself with multiple IRA’s (such as 401(k) rollovers from previous employers) it’s possible the number of retirement accounts you accumulate can become cumbersome. An IRA rollover is a way to consolidate your assets for a better view and greater control of your overall asset allocation.

Insurance. Insurance is an important part of any wealth plan; you need the right types of coverage in the appropriate amounts to protect your income stream, home, and other assets. For example, many high-net-worth individuals sleep easier under an umbrella policy because it protects them against a significant judgment, such as a personal injury or other serious lawsuit. And owners of high-value items, such as jewelry, art, and collectibles, can protect these assets through a ‘floater’ policy. Life, disability, and long-term care insurance also can prevent depletion of emergency and earmarked assets if an unexpected crisis arises. Life changes will impact your insurance needs, so it’s important to readjust your coverage periodically. While Washington Trust does not offer insurance products, we are happy to partner with you and your insurance professional to ensure you are appropriately protected.

Looking to up your game? Your Washington Trust Wealth Advisor would be happy to speak with you about these and other risk management strategies that can help protect you and your loved ones, your wealth, and your goals.

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This document is intended as a broad overview of some of the services provided to certain types of Washington Trust Wealth Management clients. This material is presented solely for informational purposes, and nothing herein constitutes investment, legal, accounting, actuarial or tax advice. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Please consult with a financial counselor, an attorney or tax professional regarding your specific financial, legal or tax situation. No recommendation or advice is being given in this presentation as to whether any investment or fund is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described were, or will be, profitable.

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