The passing of a loved one is never easy for friends and family, but 
it can be even more difficult if the survivors do not have the information they need to make decisions and take care of final arrangements.
Legal documents such as a will and powers of attorney are important, but a letter of instructions — which is not a legal document — could be just as advantageous for your heirs. It enables you to express your final wishes and provide guidance regarding the many personal and financial matters that your heirs may face after your passing.
A letter of instructions can convey any information that might help your loved ones. Here are some topics to consider addressing in the letter.
- People to contact, such as attorneys, financial professionals, insurance agents, and accountants.
- The location of important documents, including your will, insurance policies, birth certificate, marriage and/or divorce papers, Social Security and Medicare cards, tax returns, vehicle titles, and deeds to real property.
- Your wishes for final arrangements such as a memorial or funeral service and organ donation.
- Information on your bank and retirement accounts, including account numbers, PINs, and passwords.
- A list of creditors and the location of bills.
- A description of any important information to be found on your computer, including login IDs and passwords.
Store your letter in a safe, yet accessible place; tell your loved ones where they can find it; and give copies to the executor of your estate and other trusted individuals. Because some information in the letter may change over time, consider updating it regularly.
It may not be pleasant to think about what might happen after you’re gone, but leaving a clear letter of instructions could be a final act of gratitude for your heirs.
A recent study indicates that only 10% of investors aged 65 and older are willing to assume above-average or substantial investment risk, compared with 19% of investors aged 50 to 64 and 26% of those aged 35 to 49.1
A recent survey suggests that many couples are not communicating clearly about retirement goals and strategies, even as they approach retirement age. The couples surveyed were at least 46 years old with a minimum annual household income of $75,000 or at least $100,000 in investable assets.1
to do it later, too. In 2011, 20% of workers planned to postpone retirement. The poor economy and a change in employment situation were the most common reasons for workers to stay on the job.1
About two out of three American workers are saving for retirement, but less than half are confident that they will have enough money to live comfortably throughout their retirement years.1 However, even those who are confident may not have realistic expectations.
The next time you receive a pay increase, try to divert part or all of it toward your long-term financial goals. Recall the last time you received a raise and how quickly the extra money was absorbed by your spending. You might find it easier to save a raise if you don’t allow yourself to spend the extra money.
In a 2011 study by the National Institute on Retirement Security, 84% of respondents expressed concern that current economic conditions could affect their ability to retire comfortably, and 73% said stock market volatility makes it difficult to predict how much they could save by retirement.1 Clearly, uneven market performance has increased anxiety about having an adequate retirement income.
A variable annuity is a long-term investment vehicle designed for retirement purposes. There are contract limitations, fees, and charges associated with variable annuities, which can include mortality and expense risk charges, sales and surrender charges, investment management fees, administrative fees, and charges for optional benefits.
