Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Dec 8

    There is a success principle that applies to every one of us. No one is exempt and each of us should practice this fundamental way of thinking. No matter what your current level of success is; no matter how difficult your life is today. We should all apply this in our lives each and every day. The amazing thing is that it doesn’t cost us anything.

    What is this critical success strategy? It’s an attitude of gratitude. Each of us has countless reasons to be grateful. We all have hundreds of reasons to be thankful. We live in a great and beautiful country with infinite possibilities. We have families, friends, community, clients, and customers. We have tremendous opportunities to learn and grow. We can start a new business with nothing more than a great idea.

    We are all very fortunate, and we all have a cornucopia of reasons for feeling and expressing our Thanksgiving on a daily basis. I know it’s easy to become consumed with everything around us but an appreciation of what we have. It’s easy to pass through the daily grind and become swallowed up by “stuff.” The attitude with which we face these challenges is significant. A conscientious effort must be made to step back, take a deep breath, and look at our own personal reality in an appreciative manner.

    Developing and expressing an attitude of gratitude is one of the most important things that you can do to maintain a healthy balance in your life. One simple strategy to help maintain this balance is to develop a “gratitude list.” This is simply a list of the top 10, 20, or 30 things you are truly grateful for in your life. Some are easy to come up with – spouse, kids, health, friends, business, wealth, etc. Other things might take a little longer to think about to come up with. But you know that if you do not have them in your life, you would not be whole.

    Keep your gratitude list close at all times and when you’re faced with challenges in situations that seem hard to handle, pull out your gratitude list and count your blessings. It’s important to realize that each of us is really just here for an instant and we ought to be thankful for all that we have. Have a wonderful and happy Thanksgiving.

  • Nov 10

    I know in polite company and business communications you’re not supposed to talk politics and religion, but I am SO tired of talking to business owners whose religion is…

    Price.

    At least that’s what some of you believe. Based on your actions – the only way you ever talk about your product or service is that you are the cheapest provider in the city/area/community/street/block — you believe you SHOULD BE and CAN BE the low price leader in your category. Don’t you know you are worshiping at the altar of shortsightedness?

    Yes, there is a place for the lowest cost provider, but that place is fraught with peril. The margins there are razor thin; you must be ever vigilant to honor the gods of cost cutting and pray that someone more committed (or with deeper pockets) than you doesn’t step into your marketplace and undercut your price by a penny.

    Remember a few years ago when Apple® released their newest (at the time) iPhones, the iPhone 6 and iPhone 6 Plus. To say there was a lot of hoopla would be an understatement, right? Apple® released the new and improved phones on Friday, September 19th and by Monday they had sold 10 million units, one million more than the first week of the 5s and 5c the year before.

    Despite the “bad” economy. Despite losing its visionary co-founder and CEO, Steve Jobs. Despite my belief that 10 million people can’t NEED a new Apple® phone. Despite that Apple® products are rarely, if ever, cheaper than the competition.

    Apple® has achieved what every business owner dreams of: the ability to charge premium prices and still attract business. Apple® has successfully refused to bow at the altar of low price—and your business can too. Here are four ways Apple® has accomplished this…

    Can you apply these principles to your business?

    1. POWERFUL BRANDING. Thanks to a well executed branding campaign, Apple® has built a brand that is trendy, cool, and technologically advanced. The iPhone, in particular, has become a status symbol for many.
    2. STRATEGIC MARKETING. Every time a new product is launched, customers line up for hours (if not days) outside Apple® retail locations. And every time, a product shortage prompts anxiety and even desperation from customers who were unable to get their hands on the product. The result is a palpable feeling of scarcity and value—customers feel privileged to fork over $200-300 for the latest model or closer to $650-750 if their plan isn’t eligible for an upgrade! While Apple® won’t admit that they intentionally create product shortages in order to create a buzz, it’s hard to imagine that they wouldn’t be able to meet everyone’s demand on day one if they wanted to.
    3. EXCELLENT CUSTOMER SERVICE. Apple Care, the company’s warranty and customer care program, provides a level of service that is unparalleled in the electronics industry. The peace of mind that comes from knowing that expert help is a phone call away is a big part of the value Apple® provides.
    4. THE PRODUCT THAT DOESN’T DISAPPOINT. Branding, marketing, and customer service don’t mean anything if the product is disappointing. Apple® doesn’t cut corners and doesn’t make promises that its products can’t keep—resulting in customers that are consistently thrilled with their purchase. At the end of the day, if a product can’t live up to the expectations set by its marketing; it won’t be successful in the long-term.

    Apple® doesn’t compete on price—and your business doesn’t have to, either. Apply these lessons… and you’ll find that you have the ability to charge premium prices and still win the business!

  • Oct 27

    Business people seem quite willing to throw lots of money at the newest, unproven tactic for acquiring new customers/clients/patients when they would be better off plugging the holes in their existing processes that are leaking profits…

    Often right into their competitors’ pockets.

    Here are a couple of areas where you could quickly seal the holes and perhaps, double your profits.

    Probably the biggest area of opportunity for most people is following up with non-buyers. Often there is none. No systematized, automated strategy to follow up with prospects to turn them into customers.

    Of course, you have to capture the prospect’s information first and that’s another possible leak. But, if you’ve done something to capture their name and address or email, then you have the ability to stay in touch and perhaps move them from simply interested to paying customer. The higher the cost of your product or service, the more important this is.

    Capturing prospect’s information is an absolute must! It can be done online or offline, in-person, or by phone. Even though it’s easier than ever, many make no attempt whatsoever and it’s costing them thousands and thousands of dollars.

    Most business owners, when asked where their best leads come from, invariably say it’s a referral from an existing or past customer/client/patient. Yet most stumble across these referrals by chance. Almost none have a systematic approach to generating a steady stream of referrals.

    What if you weekly, monthly, or even just quarterly provided your referral sources with the tools they needed to refer others to you, such as useful reports, newsletters, emails, and instructions on your ideal customer and how to introduce others to you. You could create an “unpaid sales army.” By the way, your best referral sources might not ever have been customers. There are others who might champion your product or service. It’s not about who you know, it’s about how well you know them. If you’re curious, look up BNI.com

    Plugging holes in your leaky profit bucket is often all you need to do to provide for all the growth you can handle. It just takes a commitment on your part.

  • Sep 15

    In his book: How Rich People Think, Steve Siebold (http://www.amazon.com/Rich-People-Think-Steve-Siebold/dp/1608102793), explores the thoughts, habits, and philosophies among the rich, as opposed to the middle class, when it comes to wealth:

    • Rich people focus on earning, not saving;
    • They understand that leverage creates wealth, not hard work;
    • See that they are in control of their wealth, not luck or fate;
    • Know that money is earned from focused thought, not hard labor;
    • Don’t see money with emotion, but with logic;
    • Are Action-Takers (as opposed to having a lottery mindset).

    So why do I emphasize that last one? Simple — I’m suggesting you take an action now, which could make a big difference on your 2017 bottom line...

    You know how good coaches are usually famous for making adjustments during the halftime of big games? Well, here I am — acting as your financial coach in matters tax-related, and we’ve hit the halftime mark for 2017.

    You have six months of financial info to use for some quick math about your year as a whole, and to prepare for a pleasant upcoming tax season.

    To begin, all you have to do is take your cash flow for the first half of the year, and multiply by two. Add up your wages, dividends, interest, and any other income, and then–if this represents approximately what you’re expecting for the second half of the year — double the sum.

    Once you have your estimated 2017 income, you can give us a call: 251-633-4070 (or send me an email), and we’ll help you determine the appropriate tax rate and deductions to apply. Because once you’re armed with this info, we can help you determine the amount of taxes you might expect to owe for 2017.

    By then comparing this against your projected withholding, you can adjust the withholding on your paycheck in advance as needed, and ensure a happy visit to our office in the winter.

    This can also be a good time to organize your financial papers and/or get started with some financial software. Getting organized now can make gathering a report of all those deductions a breeze, come tax time.

    We’ve been promised tax changes by the Trump administration. That makes it all the more important to review Uncle Sam’s highest-impact tax breaks, such as donations of appreciated assets, tax-free exchanges and capital-loss harvesting.

    Unlike obvious moves, such as contributing to an Individual Retirement Account or a 401(k) plan, these strategies require a higher degree of awareness and active planning.

    Not all high-impact breaks are for the wealthy. Any homeowner can benefit from a provision allowing taxpayers to pocket tax-free income from renting a residence for as long as two weeks, and low-bracket taxpayers can pay zero tax on long-term capital gains.

    Other important moves can help minimize estate, gift, and inheritance taxes. Really, there are a variety of moves we can make to help you with your planning for the year … but you have to let us help you. It is, after all, why we are here.

    “My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time.” – Steve Jobs

  • Sep 1

    What is a champion? By definition, it’s someone who excels above all others. Generally, it refers to a world class athlete, but it could just as easily apply to a top businessperson. Nancy Holland Morgan, a two time Olympic skier, has identified seven traits that can help us understand how we too can get to the top of our game and become champions.

    You have to really like what you are doing. If you don’t have a love of the activity, an enthusiasm that turns into a burning, white-hot desire, then it may be time to sit down and reassess your life’s interest. Without it, you will not have the passion necessary to sustain the drive. Without passion, none of the other traits will even matter.

    Achieving success invariably means having to learn new techniques, master new skills, develop new strengths, or obtain new knowledge. But more often than not, as we learn new skills and techniques, we don’t get it right the first time. We have to practice. Repetition, practice, review, effort, feedback, all go into learning the fundamentals. Commitment to learning is an absolute necessity for improvement in any activity.

    Combine your desire with commitment to training, and you begin to formulate a thoughtful plan to improve your performance. But, all the desire and commitment in the world won’t do you any good unless you have a goal. Champions set goals based on their strengths and weaknesses. Their plans revolve around reaching new thresholds based on increasing their strengths and overcoming their weaknesses. Champions know that to compete seriously for their personal best, they must surrender themselves to the goal.

    The first three traits prepare us for the fourth: tenacity. Life is a series of tests; we have to pass each one to go on to the next. As we move higher up the mastery scale, we take the chance of falling harder and longer. The falls are always painful. But, we must learn to get up after each fall and continue onward.

    No one today makes it to the top alone. All champions surround themselves with a support team. The strength of others is crucial to achieving the goal of championship status. Your support team may be only your closest family members, it may be a friendship circle, or it may consist of a paid staff of advisors. Your team’s job is to keep you in the right attitude as you gain altitude.

    Do something every day that scares you just a little — not something life threatening, but something that causes you enough discomfort that you will become accustomed to pushing the envelope of your performance. Get to love your zone of discomfort. It means that we are in an awkward phase of learning a new skill or strategy to help us achieve a higher level of performance. Some people seem to move in and out of the discomfort zone more easily. This is generally either because they have more experience living in the zone of discomfort or they have learned to fake it better than others!

    People like to be around those who have an aura of self-confidence and positive self-esteem. Self-confidence means you believe in the potential of achieving your goals. High self-esteem means you are satisfied with your talents and are able to recognize and appreciate the talents of others. This is not about being arrogant, but rather a more humble expression that you are comfortable with yourself, your accomplishments, and your talents.

    Being a champion starts and ends from within. To achieve success, you must start with a strong desire and end with the courage to maintain positive self-esteem and confidence in your ability. But in between is where the real work takes place. Championship status takes every bit of inner strength and external leveraging you can muster. With hard work, the rewards will be those of a champion.

  • Aug 3

    In the flurry of launching a new business, filing your taxes may well be one of the last things on your mind. But, you don’t want to wait until the last minute to figure things out. At best, you could leave money on the table – at worst, suffer penalties or other legal ramifications.

    Avoiding these common startup bloopers can ensure your new business is on the right track to handling its tax obligations properly.

    1. Not keeping track of all of your expenses
    From the moment you launch a business, you can deduct “all ordinary and necessary” business expenses such as office supplies, professional fees, and business mileage. Your biggest mistake is not keeping track of these expenses throughout the year, and trying to gather every receipt when it’s time to file. The bottom line is you can’t deduct what you can’t document, and failing to record as you go most likely means you’re forgetting expenses and leaving money on the table.

    Find a method for documenting expenses that works for you. An accounting program, such as QuickBooks®, will let you record and manage revenue and expenses. In addition, there are dedicated apps such as Expensify for tracking expenses, MileBug for recording mileage, or Shoeboxed for capturing paper receipts. The best method is whichever one you will consistently use.

    2. Mixing personal and business
    New startups and small business owners often invest so much of themselves, their time and their money, into their new company that it’s hard to separate them. But separate them you must! The mixing of business and personal funds makes it extremely difficult to make sure you deduct all of your business expenses and only your business expenses. At the very least, you must have separate business and personal checking accounts. Just imagine the look on an IRS auditor’s face when she finds out you can’t tell your business and personal expenses apart.

    3. Choosing the wrong legal entity
    Your business’ legal structure affects how you report your taxes and how much you pay, so it’s important to choose the right entity. For example, many start out as a sole proprietor or partnership because it’s easiest, but soon find themselves paying way too much in self-employment taxes. Creating a corporation can help lower their tax bill significantly.

    4. Mixing equipment and supplies
    Both first-time and experienced business owners get tripped up by what is considered equipment versus supplies. Equipment are often higher value items that will typically last longer than one year, while supplies are generally things that you use up during the year.

    When it comes to equipment, there are a couple of approaches: 1) You can recover a portion of the cost each year, or 2) you may qualify to write-off the full amount in the year of purchase. There are, naturally, some restrictions on the ability to deduct the full amount. Be sure you talk to us first to find out if you qualify.

    If you mistakenly deduct your equipment or other capital item as an operating expense such as supplies, the IRS could determine that you’re not entitled to any deduction.

    5. Not sending Forms 1099
    When you pay any freelancer, contractor, attorney or other non-corporate entity $600 or more for services over the course of the year, you’re required to issue Form 1099-MISC and send copies to both the entity (business, contractor, individual, etc.) and the IRS. If you fail to do so on time the penalty can be as high as $520 per occurrence.

    6. Deducting too much for gifts
    Maybe you sent some of your best clients a holiday present, or sent them a closing gift after a large purchase, or sent a colleague a thank you gift for an especially nice referral. Great! Business gifts are deductible, but there’s a big catch. You can only deduct $25 per gift. So, if you send Paula a $150 fruit basket, you only get to deduct $25 for it.

    Documentation is going to be important. If you report $2,500 in business gifts, you need to be able to have documentation that shows you gave gifts to 100 different people.

    7. Not making estimated tax payments
    If your business is any legal form other than a C corporation you are personally going to be liable for paying taxes on the profits you earn. Business owners are required to pay in sufficient taxes to cover their expected tax obligations. Those payments can be in the form of payroll withholding – if you or someone in your household qualifies – or through quarterly estimated tax payments. Even if it wasn’t required, it is generally easier to make smaller payments on a quarterly basis than to have to pay the entire bill at year end.

    The best way to stay on top of your estimated tax payments is to get into the habit of setting aside a percentage of your revenue on a regular basis. Then, on a quarterly basis, review your revenue and expenses, calculate your tax liability, and make the appropriate payments.

  • Jul 21

    Many Americans appear to be living one big expense away from disaster. A 2014 Federal Reserve poll discovered the startling fact that almost half of all U.S. households could not come up with $400 to cover an emergency expense. They would need to sell something, or borrow cash, to do so.

    If you find yourself belonging to that category, then I have some ideas (11 of them, in fact) I think will help. In my experience, if you want to get out of a hole, you study the behavior of those who have already made it out. And you do everything you can to copy that behavior.

    Yes, some people have been fortunate enough to inherit wealth, etc. But many, MANY more of those who have wealth came about it in a different way.

    Now, so that YOU do not find yourself in the unfortunate place of not being able to scrape up $400 in an emergency … read this now.

    Becoming a household that will be able to ride through instability and uncertainty is only going to become MORE important in future years, not less. So, that being the case, here is a portrait of those who are able to achieve this status.

    You’ll notice that these are just as significantly about your mindset as you relate to your finances, as about your behaviors.

    Here’s what the Financially Secure look like …

    1) He always spends less than he earns. In fact, his mantra is that over the long run, you’re better off if you strive to be anonymously rich rather than deceptively poor.

    2) She knows that patience is truth. The odds are you won’t become a millionaire overnight. If you’re like her, your security will be accumulated gradually by diligently saving your money over multiple decades.

    3) He pays off his credit cards in full every month. He’s smart enough to understand that if he can’t afford to pay cash for something, then he can’t afford it.

    4) She realized early on that money does not buy happiness. If you’re looking for financial joy, you need to focus on attaining financial freedom.

    5) He understands that money is like a toddler; it is incapable of managing itself. After all, you can’t expect your money to grow and mature as it should without some form of credible money management.

    6) She’s a big believer in paying yourself first. It’s an essential tenet of personal finance and a great way to build your savings and instill financial discipline.

    7) She also knows that the few millionaires that reached that milestone without a plan got there only because of dumb luck. It’s not enough to simply “declare” to the universe that you want to be financially free. This is not a “Secret”.

    8) When it came time to set his savings goals, he wasn’t afraid to think big. Financial success demands that you have a vision that is significantly larger than you can currently deliver upon.

    9) He realizes that stuff happens, and that’s why you’re a fool if you don’t insure yourself against risk. Remember that the potential for bankruptcy is always just around the corner, and can be triggered from multiple sources: the death of the family’s key breadwinner, divorce, or disability that leads to a loss of work.

    10) She understands that time is an ally of the young. She was fortunate (and smart) enough to begin saving in her twenties, so she could take maximum advantage of the power of compounding interest on her nest egg.

    11) He’s not impressed that you drive an over-priced luxury car and live in a McMansion that’s two sizes too big for your family of four. Little about external “signals” of wealth actually matter to him.

    And a little bonus, if you will: She doesn’t pay taxes which could have been avoided with a simple phone call to her tax professional. She plans ahead, before tax time.

    “You cannot control what happens to you, but you can control your attitude toward what happens to you, and in that, you will be mastering change rather than allowing it to master you.” – Brian Tracy

  • May 24

    They played baseball together for ten years, and it happened so often, Franklin P. Adams, a New York Evening Mail columnist, wrote an eight-line poem about it. Originally published under the title “That Double Play Again,” it is better known as “Baseball’s Sad Lexicon,” or simply as “Tinkers to Evers to Chance.”

    These are the saddest of all possible words:
    “Tinkers to Evers to Chance.”
    Trio of bear cubs, and fleeter than birds,
    Tinker and Evers and Chance.
    Ruthlessly picking our gonfalon bubble,
    Making a Giant hit into a double—
    Words that are heavy with nothing but trouble:
    “Tinkers to Evers to Chance.”

    A little background: Back when the Chicago Cubs were a dynasty they won the National League pennants in 1906, ’07, ’08, and ’10 and the World Series in 1907 and ’08. Anchoring their infield were shortstop Joe Tinker, second baseman Johnny Evers, and first baseman Frank Chance -the best
    double play combination of the day.

    Adams considered the poem a throwaway when he wrote it. He simply wanted to get out to the ballpark and watch the game. But those three may still be the best known Cubs of all time.

    But, it didn’t happen by chance. (Did you see what I did there?) It happened by teamwork. It happened because they practiced. It happened because Tinkers and Evers and Chance developed a special relationship with one another unlike most others. The same is true if you’re trying to grow your business by word-of-mouth. You can’t expect people to shout your praises and send you referrals just because you showed up at the ballpark. It takes a relationship to make it work. Referral relationships work just like other relationships work.

    Think about the relationships you have with your neighbors. How willing would they be to help you out if your car broke down? Depending on your relationship, they might each respond differently. One might outright refuse to help. Another might share the name of his favorite mechanic. Another might be willing to take you or pick you up at the garage. Still another might insist on fixing it for you at no cost. Each of your neighbors may display a different willingness to help. And naturally, your willingness to help them would probably differ as well. Even your requests for help would be dependent on your history with each of them.

    Great referrals don’t happen just because you ask. At some level of consciousness, people who are good salespeople know this. Yes, sometimes, just asking for referrals will work, but more often, asking someone with whom you haven’t yet developed a relationship, may sour them forever.

    Like a great double play combination, it may look easy, but it takes a lot of work behind the scenes to make it happen. Getting ideal referrals with strong introductions from influential people involves planning, preparation, and practice. It involves developing that special relationship.

  • Apr 27

    In business, doing what others don’t do can often give you an edge. It can position you head and shoulders above your competition. It helps you stand out in a positive way, and when you do, people are attracted to you and your business, and your success grows stronger, deeper, and more durable.

    Asking for feedback is a simple way to gather information for improving our businesses, but many of us never take the time to ask. We get so wrapped up in the day-to-day running of the business that we fail to pause and ask people, “How are we doing?” Others are simply intimidated by the process – and afraid of what they’ll hear.

    According to the book The 29% Solution by Ivan Misner and Michelle R. Donovan there are five main reasons why we don’t ask for feedback: (1) we’re afraid the response will be negative; (2) we don’t know who to ask; (3) we don’t know when to ask; (4) we don’t know how to ask; (5) we don’t want to take up other people’s time. With all these objections, the thought of asking for feedback can give us heartburn, but it’s worth the pain; the potential for growth can be tremendous.

    Whether positive or negative, feedback should be considered constructive, because it helps our business develop new products, improve existing services, and sometimes adopt a whole new approach.

    Fear of a negative response may be what keeps many of us from asking for feedback. Nobody is eager to be criticized. But, as difficult as it to receive, negative feedback is actually a gift. It’s a reality check; it reminds us that no matter how good we are, we can always improve. It’s also a reminder that we can never make everyone happy. If you’re willing to ask for feedback, you’re going to get some negative feedback along the way. It’s your attitude toward it that will turn that negative feedback into an opportunity. Don’t ask for feedback unless you’re ready to hear it – and respond to it constructively.

    Whom should you ask for feedback? One answer is everybody. Ask your coworkers, supervisors, subordinates, partners, customers.

    When is the best time to ask for feedback? That depends. A professional development trainer might ask for feedback several times. During a session, so it can be tailored, the end of a session, and three or four months afterwards. She’ll ask different questions at different times. Someone selling a product might need to give the customer time to use it, or might not. Someone selling professional services might want to ask shortly after the services have been delivered.

    What if you don’t know how to ask for feedback? The easiest, and most logical, way is make it part of your sales process. Many companies use a questionnaire; some hand it out upon completion of the assignment, some e-mail it afterward, and some mail it as a follow-up in a few weeks. How you choose to do it depends on your customer base.

    The last reservation that a lot of us have is that we are reluctant to take someone else’s time by asking for feedback. What a cop-out. Adults have the option of saying no. It’s our responsibility to ask. Increase the likelihood that you’ll get useful feedback by making the request simple and timely. If it’s too complicated, or if you set a hurry-up deadline, your requests may end up in the circular file. Make the deadline too far off, and people will set it aside and forget it.

    I dare you – do something few others do. Stand out from the crowd. Ask for feedback. And be ready to turn it into opportunities for your business.

  • Jan 6

    A thoughtful estate plan can make your heirs lives easier. But it is your parents’ estate planning that will make your life easier.

    Not every family has fostered the ability to speak openly in love. But if you have begun that process, here is an outline of what grown children need to know about their parents’ business. In fact, adults of any age should update their estate plan every year.

    And, as a parent, if you are willing to share some of this information with your children—especially if one of them is also the executor of the estate— they’ll appreciate having the facts and be more prepared emotionally when the time comes. They will know your wishes ultimately anyway, and good communication will lessen any surprises ahead of time. They will benefit from knowing the answers to the following questions:

    Do you have enough saved for a comfortable retirement? Many financial planners use a safe withdrawal rate by age to make sure the clients will still have enough money toward the end of their retirement. But, this isn’t always the case, and is worth looking into. If your spending is under this withdrawal rate, you have more than enough and probably can leave a legacy to your heirs. But, if you are over this rate, you may run out of money and have to compromise your standard of living abruptly. It may be uncomfortable, even embarrassing, for parents to share their finances with their children, but grown children often want to know how their parents are doing.

    Where are the important documents? The five documents your children should be able to retrieve quickly are: a will; a living will; a power of attorney; a directory of basic information; and the latest end-of-year financial statements.

    The directory of information should list the assets of your estate, along with the account or policy numbers and contact phone numbers. It also helps to indicate your intentions for the distribution of each asset, which will help confirm you have the correct titling and beneficiary designations on every portion of your estate.

    You may have structured your will to divide your estate equally among your children. But, if you have tried to make it easy for one child to access your bank accounts by adding his or her name, you have overridden your estate plan and left that child joint tenancy with complete rights of survivorship. This can be a problem.

    Titling and beneficiary designations are legal estate planning actions. It’s best to review them with your legal advisor. Various types of assets are best designated differently in the estate plan. This is not the occasion for do-it-yourself thrift. It is a rare family that has compiled and reviewed a complete list of estate assets: bank accounts, investment accounts, retirement accounts, real estate holding, life insurance, health savings accounts, and so on.

    Are there any special bequeaths? Any promises you have made should be documented. Your good intentions won’t matter if you aren’t around to implement them. If you have promised money to a charity, and want that obligation kept, document it. If you have promised to loan a child money, document it. If you have promised to help fund your grandchildren’s college education, document it. Without documentation, none of these promises can be kept if you aren’t around to make the decisions.

    Are there plans to remarry? If parents have remarried, intergenerational estate planning is even more critical. Prenuptial agreements and careful estate planning are required in the case of second marriages, to avoid disinherited children or grandchildren from the first marriage. The default is rarely a good option.

    Do you have any prepaid funeral arrangements? Do you want to be buried or cremated? Do you have any preferences for a memorial service? Although it may seem macabre to plan your own funeral, a memorial service takes time and thought. It will be that much more special and comforting to your family when it is filled with your favorite music and readings. Encourage your children’s interest in your estate planning. Most of the time, their intentions are honorable. They may simply want to understand your values and therefore your wishes.