When we work with clients we like to present options and choices. Generally speaking, doing nothing is not one of our recommendations when it comes to planning matters.
When you’re talking about planning for your estate, your business, your charitable intentions, etc., doing nothing is typically not a great choice. It’s rare we’ve ever seen “doing nothing” work out well.
Over the past decade, we’ve seen a number of tax law changes. So many changes, it seems, some clients have chosen to throw up their hands and say “what’s the use? They’ll just change it again next year!” While it’s totally understandable to be frustrated by all these changes, choosing to do nothing will not help your situation.
Given all these tax law changes, many of which were not necessarily expected by those of us who closely follow Washington, a sensible and popular strategy is to take a “wait & see approach”.
What does that mean?
First off, it means doing something—not nothing. Without doing a deep dive here and getting technical, it means taking some planning steps now but leaving yourself some very attractive options should the tax law change again down the road. So you implement some key steps now, all while building in various escape hatches in the event the law doesn’t go the way you hope. And if it does, we’ve built in alternate paths we can pursue that still put you in a far better position than simply doing nothing.
Rare is the client we’ve met with, years after the first meeting, where they chose to do nothing and it worked out well for them. In planning circles, it is known that time is our enemy. It is limited, and it is finite. And it is foolish to think “well, I’ll get to that one day.” Sadly, we can recall clients who chose the do-nothing path only to see it end very badly for them. And worse, for their family left behind with a mess.
Doing nothing never works out well. Taking steps now is the right path. And for those unsure of the future, a “wait & see” approach might fit the bill perfectly.
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Mercury Financial Group does not provide tax or legal advice. All clients are urged to seek counsel on such matters.