Best estate planning moves for young adults

On Behalf of | Oct 22, 2020 | estate planning |

Estate planning is often considered the province of people in their fifties and beyond. In reality, the moves people make in their twenties and thirties are also critical. 

Smart actions can not only impact the quality of a person’s retirement years, they can also play a role in a person’s sense of security in their younger years. 

Begin with good financial habits 

An article by CNBC stresses the importance of good money habits at an early age. Best of all, incorporating these habits do not require rocket science or a large income. The following habits practiced by young adults more often than not lead to a secure financial future: 

  • Stick to a reasonable budget 
  • Pay down debt 
  • Save for retirement at an early age 
  • Maintain a high credit score 
  • Establish an appropriate emergency fund 

All of this falls into the category of developing solid money habits. This includes simple things such as avoiding fees and paying high interest rates that chip away at a person’s discretionary income. Shopping for good deals on financial products such as credit cards and loans can also free up money that can then go into a retirement account. 

Consider a few critical documents 

At some stage, a young person should consider the role of a few legal documents that help with estate planning. Forbes recommends a durable power of attorney document that allows an agent to make financial decisions for a client or manage finances under certain conditions such as medical incapacitation. A living will or health care proxy enables another person to make medical decisions on another person’s behalf. Every person’s situation is different, but young adults will benefit by looking at estate planning options early in their careers.