Talk To Your Financial Power Of Attorney About Your Approach To Investing

Having your estate planning attorney draw up paperwork to name a financial power of attorney for you is about more than just selecting the right individual. You must also have a series of discussions with this trusted person — including several that also involve your attorney — so that he or she is acutely aware of the duties that will be necessary when you cannot make decisions about your financial matters. One area to discuss is your financial investments. You may continue to live for a long time after you cannot make your own decisions, so your power of attorney should understand your approach to investing. Here are some topics to cover.

Aggressiveness

Different investors take different approaches toward being aggressive. Some people shrug off heavy risk for the chance of making significant profits, while others take more of a conservative approach. Your financial power of attorney may be making investment decisions for you for months or even years, so he or she needs to know your mindset in this regard. The last thing that you want is a power of attorney being aggressive in the market when you've always taken a slow-and-steady mentality to investing.

Time Frames

The decisions that someone makes in investing frequently depend on when he or she will want to have access to this money. This can be a challenging topic to think about and discuss with your financial power of attorney, but it's a critical one. Regardless of your age, your financial power of attorney needs to assess your health issues and life expectancy when making decisions. For example, he or she won't want to lock in certain types of long-term investments when it may be evident that your life is approaching its end and your family will need access to this money.

Types Of Investments

You should also make it clear to your financial power of attorney what types of investments you favor. This may be a time to sit down with your power of attorney and your financial adviser, as he or she can provide additional insight — as well as establish a point of contact that can be valuable in the event of you not being able to manage your own investments. Different people favor all sorts of investments, including stocks, bonds, mutual funds, and even cryptocurrencies. You'll feel better knowing that your financial power of attorney can make decision on your behalf that are in alignment with how you've invested in the past.

Visit a site like https://www.linskylaw.com for more help.


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