Five money things to do this summer
It’s officially summer — the traditional time to relax and play, vacation and travel. But while everyone else is ignoring the subject of money, this is the perfect time to tackle a financial project that you’ve been ignoring.
You might cringe at the idea of spending your summer sorting out your finances. But financial advisers, tax experts and estate planning attorneys also have some spare time during the summer, so they can pay more attention to your needs. In fact, it’s a perfect time to get started!
1. Update your estate plan. I’m assuming you already have some sort of estate plan — even if it’s a will that you made years ago. By now, your children are grown and so are your assets. It’s time to update your will — or better yet, start over with a revocable living trust. The costs are the same, but the revocable living trust gives more flexibility while you are alive, and it has no tax implications.
Watch the video explaining the differences between a will and RLT at TerrySavage.com. If you don’t know an estate planning attorney, ask the trust department at your local bank.
Oh, and while you’re at it, get a healthcare power of attorney for each adult in your family, giving specific permissions if you are unable to make medical decisions. Your doctor’s office or local hospital will have the blank forms. They might also ask if you want to sign a living will — giving end-of-life instructions.
2. Get a comprehensive and unbiased financial review. And get it from someone who is not trying to sell you something. You want a fee-only, fiduciary, certified financial planner. All three of those ingredients are essential — and should be put in writing before proceeding. The initial meeting should be free, so you can get an idea of their style.
And don’t be afraid to get a second opinion. You’d do that if it were a medical diagnosis or recommendation for surgery. Don’t let anyone perform surgery on your money without a second opinion!
Get matched with fee-only, fiduciary planners at Wealthramp.com, where Pam Krueger has used her skills to match people with qualified experts around the country, at no charge.
3. Review your life insurance policies. Have you named the correct beneficiary on your life insurance? If you have recently created a revocable living trust, perhaps that trust should receive the assets and distribute them per your wishes.
In fact, do you still need that life insurance policy? Don’t be in a hurry to sell it to a company that will continue to pay the premiums, hoping for your early passing! Make this insurance review part of your estate planning process.
And if you don’t have life insurance, ask yourself why not! How would your children pay for college or your spouse pay the mortgage if you meet an untimely death?
4. Evaluate your debt. Consumer credit card debt is at an all-time high. Paying just the minimums could stretch out the burden for 30 years, and cost you five times the amount you originally borrowed! You’re only fooling yourself if you’re paying 21+% interest on a vacation trip this summer. The memories will last a lifetime — and so will the payments!
Use this calm economic moment to transfer the balance to a zero-interest card, and start making double payments on it. Hide your old card, and don’t reload. Find that balance transfer opportunity at CreditCards.com.
5. Think ahead to your living plan in five years. Summertime is living-in-the-moment time. But if you’re nearing retirement or actually in retirement, think about where you want to be living in five or 10 years. Is it worth putting a new roof on the house, or buying a new lawnmower? Or is it time to consider an alternative lifestyle, where your responsibilities are reduced and your financial costs more predictable.
Surveys show that those who move into senior communities long before they consider themselves “seniors” will have the best adjustment, making the most use of the available facilities and creating new friendships. You made the jump to the suburbs or a condo earlier in your life. Now is the time to consider your exit plan — leaving a lot of the furnishings and memories behind.
OK, so NONE of those things were on your carefree summer plan! That’s the reason I’m pointing them out. At least these ideas might trigger a discussion, if not immediate action.
Nothing in life stays the same. And that’s The Savage Truth.
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(Terry Savage is a registered investment adviser and the author of four best-selling books, including “The Savage Truth on Money.” Terry responds to questions on her blog at TerrySavage.com.)
©2025 Terry Savage. Distributed by Tribune Content Agency, LLC.
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