“We frequently talk about risk management in the context of the capital markets, but managing risk encompasses far more than your investment strategy,” said TIAA Wealth Planning Strategies Director Colleen Carcone, CFP®.
Carcone cites the coronavirus as an example of how quickly events outside of our control can impact our health, lifestyle and financial goals in ways we could not have imagined before. According to Carcone, the pandemic has led to a growing number of people reassessing their goals, values and priorities in recent months.
“I’ve spoken to a number of clients in recent weeks who have engaged in conversations with their estate planning attorneys and wealth advisors to review their legacy plans and goals, and think about ways to preserve wealth to help future generations who may face a similar crisis.”
Carcone points to another important aspect of risk management: making sure you have the right documents in place.
“The pandemic has brought discussions about who will act on your behalf if you’re incapacitated to the forefront of family discussions,” Carcone said. “Who has the legal authority to act on your behalf? Who is authorized to receive updates on your condition if you’re hospitalized? What are your wishes when it comes to palliative or end of life care? There may be some things out of your control right now, but your estate plan isn’t one of them.”
Having the right documents in place, beginning with a living will, durable powers of attorney and healthcare directives, provides legal authority to those you trust to act on your behalf, ensuring your wishes are met during your lifetime and your legacy is honored after you are gone.