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Navigating Estate Planning for Blended Families: 3 Key Considerations to Protect Your Legacy

Admin • July 17, 2023

Your financial journey can be just as thrilling as any other adventure you embark upon. Admittedly, there are challenges along the way. It can be difficult to confront poor financial habits or to make hard sacrifices as you strive to reach your goals.

Yet, it’s precisely these obstacles that make the attainment of our financial goals even more rewarding. Getting out of debt, buying a dream home, starting a business, or building your retirement nest egg are all exciting moments when it’s okay, and even encouraged, to pause and celebrate your achievements.

You might be tempted to think your financial journey has reached its destination once you have checked off a financial goal. There’s nothing left to do, right? Wrong.

The next part of the journey is often met with reluctance: estate planning.

This involves protecting the assets you’ve worked so hard to accumulate over the years and making decisions about their distribution after your passing. And while we can all probably agree on the importance of estate planning, it’s far from an effortless endeavor and is a commonly delayed or avoided part of the journey.

Some might fear facing the inevitable reality of what lies ahead, while others dread the hard “who gets what” conversations. This can be particularly true when adding an extra layer of intricacy— blended family dynamics.

Navigating Estate Planning for Blended Families: 3 Key Considerations

When navigating a blended family situation, the involvement of more individuals (including legal and non-legal relatives) calls for careful attention to how things are structured and adds a sense of urgency. If you’re in this situation without an estate plan, place this at the top of your “To-Do list” as you start thinking about these key considerations:

  1. Inheritance for biological/legal children and stepchildren.
  2. Inclusion of former partners/spouses.
  3. Seeking professional and specialized guidance

Let’s take a closer look into why each aspect is critically important within the context of a blended family.

Inheritance for Biological/Legal Children and Stepchildren

One of the distinctive challenges in blended families revolves around deciding if and how to divide an inheritance between biological/legal children and stepchildren. There is no definitive right or wrong approach, as it ultimately comes down to personal preferences. To help you start thinking through this, consider the following questions and scenarios:

What Is Your Relationship with Your Stepchildren?

Some individuals may have been actively present in their stepchildren’s lives from a young age, perceive them as their own children, and have a strong desire to continue providing for them. Others may have formed a connection with their stepchildren later in life, or even adulthood, and may not feel a desire or obligation to leave them an inheritance.

Will Your Stepchildren Receive an Inheritance from Your Partner/Spouse or Be Financially Secure without Your Support?

In some situations, when a couple enters a new relationship with children from previous relationships, they may mutually agree to independently provide financial support for their respective children without expecting the other partner to do so, both currently and in the future.

The assurance that each child will be provided for can bring a sense of peace. It may be reason enough to exclude stepchildren, particularly if there are limited assets involved and the primary goal is to protect the inheritance of one’s biological/legal children.

Every family is unique. These scenarios may not apply to you, but hopefully it gets you thinking about your family situation.

Tip: Your stepchildren don’t have legal rights to your assets unless they’ve been legally adopted. Consequently, if you pass away without an estate plan, they won’t be entitled to an inheritance like a biological or legally recognized child might be. If you intend to leave an inheritance for non-legally adopted stepchildren, you need a plan explicitly stating their inheritance rights.

Inclusion of Former Partners/Spouses

It’s not uncommon for individuals to want to leave an inheritance and provide ongoing financial support for a former partner or spouse. Especially when children are involved, or if they have maintained a positive relationship with their former partner or spouse. If this is you, here are some questions worth contemplating:

Are There Minor Children Involved for Whom You Are the Primary Financial Provider?

Consider the potential impact on the lives of any minor children and their long-term financial stability. If you’ve been the primary financial provider, you might want to leave an inheritance to a former partner or spouse to ensure ongoing support for the children.

Alternatively, suppose you leave the inheritance directly to the children to care for their specific needs. In that case, you may consider appointing your former partner or spouse to manage those assets on their behalf until the children reach the age of majority.

Are There Any Divorce Settlements or Prenuptial Agreements That Require You to Provide for a Former Partner or Spouse in the Event of Your Passing?

You may have legal documents containing provisions that require you to designate your former partner or spouse as a beneficiary to some of your assets, which leaves you with no choice but to include them in your estate plan.

Tip: If there are no legal obligations and you have no desire to maintain financial ties with a former partner or spouse, promptly remove them as a beneficiary from your accounts. It’s all too common to forget or delay updating your beneficiaries after entering a new relationship. Ultimately, this can lead to your assets falling into the hands of someone you no longer wish to leave an inheritance.

Seeking Professional and Specialized Guidance

You may have some flexibility and options in the previous two considerations, but this one not so much. Given the unique dynamics and legal complexities of estate planning for blended families, it should go without saying that this is not the time to attempt a DIY estate plan.

Consulting with an experienced estate planning attorney who specializes in working with blended families can help you navigate challenges, avoid blended family inheritance issues, and develop a plan tailored to your specific needs and goals.

Tip: Reach out to your employer to inquire about any available legal benefits. They may be able to connect you with an estate planning attorney in your state who can cater to your specific needs.

Reaching Your Estate Planning Goals with Financial Planning

You probably have big financial goals that will directly impact those you love, from providing for your family’s basic needs to creating a lasting legacy of generational wealth and everything in between.

While an estate planning attorney can assist in creating a plan for the future distribution of your assets, your present focus may be on building and managing those assets to ensure future provision for others.

That’s where our expertise comes into play —we can provide you with a financial roadmap that empowers you to confidently work towards your financial goals (with us guiding and rooting you on along the way!). We want to help you enjoy the fruits of your achievements in the present and ensure that future generations can reap the benefits too, if that is your goal.

If you’re ready to start or continue on your financial journey with a team who is on your side , give us a call at 877.333.1015 to schedule a meeting. We can’t wait to connect with you!

40 and Catching Up: Why This Decade Could Be Your Best for Building Wealth

July 18, 2025
Your 40s arrive with a unique mix of clarity and urgency. You've likely figured out what you want from life, but suddenly retirement no longer feels like a distant concept. If you're looking at your financial situation and feeling behind, you're not alone. Many people in their 40s experience this same wake-up call. The good news is that this decade offers some of the most powerful opportunities to accelerate your wealth-building journey. Think of your 40s as your financial prime time. You're earning more than you ever have, you understand money better than in your 20s and 30s, and you still have 20-25 years to let compound growth work its magic. Instead of dwelling on what you should have done differently, let's focus on what you can do right now to make this decade count. The Reality Check: Where You Stand vs. Where You Want to Be Before exploring strategies, let's acknowledge the elephant in the room. Many financial experts recommend saving three times your annual salary by age 40. If you're reading this and thinking, "I'm nowhere near that," take a deep breath. Life happens. Maybe you started your career later, switched fields, dealt with medical expenses, helped family members, or simply prioritized other goals during your 30s. The key is to start from where you are today, not where you think you should be. Your 40s bring unique advantages: higher earning potential, greater financial discipline, and often more stable life circumstances. Many successful investors didn't hit their stride until their 40s or later. You're not behind; you're just getting started on a more intentional path. Retirement Savings Strategies That Work in Your 40s Your retirement savings strategy in your 40s should differ from someone in their 20s or 30s. You have less time but more resources, which means you need to be both aggressive and smart about your approach. First, maximize your employer's 401(k) match if you haven't already. This is free money, and missing out on it is like leaving cash on the table. Additionally, consider increasing your contribution rate by 1-2% each year, or whenever you receive a raise. This gradual approach makes the adjustment less painful while significantly boosting your long-term savings. Roth conversions become particularly powerful in your 40s. If you expect to be in a higher tax bracket in retirement or if you want to leave tax-free money to heirs, converting some traditional IRA or 401(k) funds to Roth accounts can be a smart move. The key is to do this strategically, perhaps in years when your income is temporarily lower or when you can manage the tax impact. Don't overlook the power of diversification beyond your 401(k). A taxable investment account gives you flexibility and access to your money before age 59½ without penalties. This can be crucial for achieving early retirement goals or covering major expenses that may arise before the traditional retirement age. Catch-Up Retirement Contributions: Start the Habit Now Once you reach 50, you can make catch-up contributions to your retirement accounts, which significantly increases your savings potential. For 2025, this means an additional $7,500 in 401(k) contributions (bringing your total to $31,000). However, you don't have to wait until 50 to think like someone making catch-up contributions. Start now by treating your savings rate as if you're already eligible for these higher limits. If you can save an extra $600 per month ($7,200 annually) starting at 45, you'll have built the habit by the time you're actually eligible for catch-up contributions. Retirement Milestones by Age 40: A New Perspective Traditional retirement milestones can be discouraging if you're starting later or if life hasn’t gone as planned. Instead of focusing on arbitrary multiples of your salary, consider these more practical benchmarks for your 40s: The Emergency Fund Foundation : Before aggressively pursuing retirement savings, ensure you have a solid emergency fund in place. This prevents you from having to tap retirement accounts during tough times. Aim for 3-6 months of expenses, adjusted for your specific situation. The Debt Freedom Focus : High-interest debt can quickly derail retirement plans. If you're carrying credit card debt or other high-interest obligations, addressing these might be more valuable than maximizing retirement contributions beyond your employer match. The Income Replacement Goal : Rather than focusing on net worth multiples, think about what percentage of your current income you're on track to replace in retirement. A good target is 70-80% of your pre-retirement income, but this depends on your lifestyle and retirement plans. The Flexibility Buffer : Your 40s are a great time to build financial flexibility. This means having investments outside of retirement accounts that you can access without penalties, creating multiple income streams, and maintaining career skills that keep you marketable. Insurance: Life and disability insurance coverage should reflect your current income and family needs. Estate Planning : A basic will, power of attorney, and healthcare directive should be in place. Making Your Peak Earning Years Count Your 40s often represent your peak earning years, and how you manage this increased income will significantly impact your financial future. The temptation to inflate your lifestyle with every raise is real, but this decade calls for more strategic thinking. Consider implementing a "pay yourself first" approach where you immediately redirect any income increases to savings and investments. If you get a $5,000 raise, automatically increase your 401(k) contribution by $3,000 and your taxable investment account by $2,000. You'll barely notice the difference in your take-home pay, but you will thank yourself in the future. This is also the time to think seriously about additional income streams. Whether it's consulting in your field, starting a side business, or investing in rental real estate, diversifying your income sources provides security and potential for acceleration. Building Wealth Beyond Retirement Accounts While retirement accounts are crucial, they shouldn't be your only wealth-building tool. Your 40s are an excellent time to diversify your investment approach and build wealth that's accessible before traditional retirement age. Consider opening a taxable investment account if you haven't already done so. This provides flexibility and liquidity while still offering growth potential. Focus on tax-efficient investments, such as index funds, and consider holding dividend-paying stocks or REITs for their income potential. Real estate can be particularly powerful in your 40s. Whether it's paying off your primary residence early, investing in rental properties, or exploring REITs, real estate adds diversification and potential inflation protection to your portfolio. Don’t Forget the “You” Factor We’d be remiss not to mention this: life in your 40s is busy. You might be managing aging parents, teenagers, or a toddler (or all three). You may be helping your partner through a career change or navigating one yourself. It’s a lot. Which is precisely why intentional financial planning matters now more than ever. You don’t need to do it perfectly. You just need a plan that’s rooted in your real life — your values, your vision, and your goals. A good financial advisor can help you prioritize, simplify, and clarify the next best steps, even if you feel like you’ve fallen behind. Ready to Create Your Personal Financial Strategy? Feeling overwhelmed by all the options and strategies available? You don't have to navigate this journey alone. At Five Pine Wealth Management , we specialize in helping individuals and families in their 40s and beyond create comprehensive financial plans that align with their goals and circumstances. Whether you're looking to maximize your retirement savings, explore catch-up strategies, or build a diversified investment portfolio, our team can help you develop a personalized approach tailored to your situation. We work with clients at various stages of their financial journey, from those just getting serious about retirement planning to those with substantial assets seeking to optimize their strategies. Don't let another year pass wondering if you're on the right track. Schedule a conversation with our team to discuss your financial goals and explore how we can help you make the most of your financial prime time.

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.