How Much Do You Have To Pass On?

Eventually you have to start thinking about what happens to your money when you die.

An article in Forbes says the three key estate planning issues are: how much can you give; who gets your assets; and when do they get them, now or after you die?

To get started on answering those questions you must figure out how much you have, how much you need to support your life and how much you can spend each year without diminishing the value of your portfolio.

Usually, the answer to that last question is 4 percent. Thus, if you need $100,000 a year to live comfortably, you need a portfolio of $2.5 million.

If your net worth is more than the portfolio you need to sustain your living needs, the excess is what you can give away in your lifetime.

If you have estate planning questions, feel free to call us for a consultation at (626) 696-3145.

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