If You Had 2 Months to Live, Are You Estate Planning Prepared?
What would go through your mind if you were suddenly told by your doctor that you had two months to live? Would you be prepared? What would you do? How would you choose to live the remaining time that you have?
This is news that was given to my father earlier this year. It’s difficult news – especially for your loved ones. Based on his parents’ longevity, he was planning on living for another thirty years. But after receiving such shocking news, my father decided to live his life just as he would have otherwise. Aside from when he was unable due to medical treatments and their side effects, he continued working, spending time with his loved ones and traveling when possible. He didn’t want to be treated differently by others, and he didn’t let his diagnosis get him down.
Was he in denial about his condition? Not at all. He knew what was likely ahead in his near future. And thankfully, because of that, the one change he did make was he immediately started planning. Although he’d had estate documents in place and periodically updated for years, the week after his diagnosis he had his estate plan reviewed and updated. He made sure everything was in line so the transition would be as easy as it could be for my mother, his executor and trustees. He also spent countless hours making sure that he had a flawless succession plan in line at work.
Through this difficult time, it became very clear to me how essential estate planning is. As a financial advisor, I have taken classes on risk management and estate planning, so I have known for a long time that it is important. But this made it much more real.
Many individuals put off estate planning because we don’t like thinking about our mortality. We would rather continue life as usual without having to deal with the hassle of tasks like creating estate documents or choosing guardians for minor children. Don’t make that mistake. None of us are promised tomorrow, so it was best to have a plan in place ahead of time to make the transition as easy as possible for his employees and his clients.
Benefits of Estate Planning
- Making the transition much easier on your dependents and loved ones
- Giving you control over your assets after death
- Assigning guardians and allocating assets for minor children
- Directing the distribution of your assets instead of having the state decide
- Assigning those who will control your assets after death
- Helping reduce estate taxes and probate costs
Estate Documents You Should Have in Place
- Last will and testament (also known as simply your “will”) – Allows you to direct the distribution of your assets at death instead of having state laws determine that for you
- Living will / Advanced medical directive – Expresses your last wishes regarding sustainment of life under certain circumstances
- Springing power of attorney – Allows an individual do act on your behalf in the event that you are unable to do so on your own
- Healthcare power of attorney – Establishes an individual to make health care decisions for you
Other Important Estate Updates
Another aspect of your estate that you should check on and update periodically are the beneficiaries listed on assets that pass outside of your will, like retirement accounts (IRAs, 401(k)s, pensions, etc.) and life insurance policies. When checking beneficiaries, make sure that you cover any beneficiaries’ potential name changes due to marriage or divorce and keep their addresses current. And you should consider whether you need to have a succession plan in place at your place of work.
If you do not already have one, establish an estate plan as soon as possible. If you already have an estate plan, review it annually to make sure that no changes are needed. And if changes are needed, do not wait to make the updates. In the event of an emergency, you and your loved ones will be so grateful that you did.
Having an estate plan in place is essential, whether you are young or old, married or single, wealthy or poor, healthy or unhealthy.
China's Push Toward Excellence Delivers a Global Robotics Investment Opportunity
Written by: Jeremie Capron
China is on a mission to change its reputation from a manufacturer of cheap, mass-produced goods to a world leader in high quality manufacturing. If that surprises you, you’re not the only one.
For decades, China has been synonymous with the word cheap. But times are changing, and much of that change is reliant on the adoption of robotics, automation, and artificial intelligence, or RAAI (pronounced “ray”). For investors, this shift is driving a major opportunity to capture growth and returns rooted in China’s rapidly increasing demand for RAAI technologies.
You may have heard of ‘Made in China 2025,’ the strategy announced in 2015 by the central government aimed at remaking its industrial sector into a global leader in high-technology products and advanced manufacturing techniques. Unlike some public relations announcements, this one is much more than just a marketing tagline. Heavily subsidized by the Chinese government, the program is focused on generating major investments in automated manufacturing processes, also referred to as Industry 4.0 technologies, in an effort to drive a massive transformation across every sector of manufacturing. The program aims to overhaul the infrastructure of China’s manufacturing industry by not only driving down costs, but also—and perhaps most importantly—by improving the quality of everything it manufactures, from textiles to automobiles to electronic components.
Already, China has become what is arguably the most exciting robotics market in the world. The numbers speak for themselves. In 2016 alone, more than 87,000 robots were sold in the country, representing a year-over-year increase of 27%, according to the International Federation of Robotics. Last month’s World Robot Conference 2017 in Beijing brought together nearly 300 artificial intelligence (AI) specialists and representatives of over 150 robotics enterprises, making it one of the world’s largest robotics-focused conference in the world to date. That’s quite a transition for a country that wasn’t even on the map in the area of robotics only a decade ago.
As impressive as that may be, what’s even more exciting for anyone with an eye on the robotics industry is the fact that this growth represents only a tiny fraction of the potential for robotics penetration across China’s manufacturing facilities—and for investors in the companies that are delivering or are poised to deliver on the promise of RAAI-driven manufacturing advancements.
Despite its commitment to leverage the power of robotics, automation and AI to meet its aggressive ‘Made in China 2025’ goals, at the moment China has only 1 robot in place for every 250 manufacturing workers. Compare that to countries like Germany and Japan, where manufacturers utilize an average of one robot for every 30 human workers. Even if China were simply trying to catch up to other countries’ use of robotics, those numbers would signal immense near-term growth. But China is on a mission to do much more than achieve the status quo. The result? According to a recent report by the International Federation of Robotics (IFR), in 2019 as much as 40% of the worldwide market volume of industrial robots could be sold in China alone.
To understand how the country can support such grand growth, just take a look at where and why robotics is being applied today. While the automotive sector has historically been the largest buyer of robots, China’s strategy reaches far and wide to include a wide variety of future-oriented manufacturing processes and industries.
Electronics is a key example. In fact, the electrical and electronics industry surpassed the automotive industry as the top buyer of robotics in 2016, with sales up 75% to almost 30,000 units. Assemblers such as Foxconn rely on thousands of workers to assemble today’s new iPhones. Until recently, the assembly of these highly delicate components required a level of human dexterity that robots simply could not match, as well as human vision to help ensure accuracy and quality. But recent advancements in robotics are changing all that. Industrial robots already have the ability to handle many of the miniature components in today’s smart phones. Very soon, these robots are expected to have the skills to bolster the human workforce, significantly increasing manufacturing capacity. Newer, more dexterous industrial robots are expected to significantly reduce human error during the assembly process of even the most fragile components, including the recently announced OLED (organic light-emitting diode) screens that Samsung and Apple introduced on their latest mobile devices including the iPhone X. Advancements in computer vision are transforming how critical quality checks are performed on these and many other electronic devices. All of these innovations are coming together at just the right time for a country that is striving to create the world’s most advanced manufacturing climate.
Clearly, China’s trajectory in the area of RAAI is in hyper drive. For investors who are seeking a tool to leverage this opportunity in an intelligent and perhaps unexpected way, the ROBO Global Robotics & Automation Index may help. The ROBO Index already offers a vast exposure to China’s potential growth due to the depth and breadth of the robotics and automation supply chain. As China continues to improve its manufacturing processes to meet its 2025 initiative, every supplier across China’s far-reaching supply chains will benefit. Wherever they are located, suppliers of RAAI-related components—reduction gears, sensors, linear motion systems, controllers, and so much more—are bracing for spikes in demand as China pushes to turn its dream into a reality.
Today, around 13% of the revenues generated by the ROBO Global Index members are driven by China’s investments in robotics and automation. Tomorrow? It’s hard to say. But one thing is for certain: China’s commitment to improving the quality and cost-efficiency of its manufacturing facilities is showing no signs of slowing down—and its reliance on robotics, automation, and artificial intelligence is vital to its success.
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