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As you near retirement, planning your estate becomes more important than ever. If you haven’t already invested in a full estate plan, it is essential that you do so now. Your financial situation is about to change dramatically and it’s important that you prepare for this major alteration and ensure that you will be able to live out your golden years in comfort and ease. And if you’re still a long way from retirement, it’s never too early to begin planning.
Planning for Retirement
Starting early is the best way to plan for retirement. In fact, only half of all Americans have calculated how much they need in order to retire comfortably. When it comes to planning, you’ll need to factor in an average of 20 years that you’ll spend in retirement. The first step towards planning your estate is to figure out your retirement needs. In order to live comfortably in retirement, you’ll probably need to maintain an income of at least 70 percent of what you made while you were working. In order to achieve this, investing in a retirement account, whether through your employer or on your own, is a great way to ensure this income. Looking into the social security benefits you will receive is also an important consideration. Finally, saving as much money as you can is essential to any retirement plan.
How to Approach Retirement
By the time you’ve reached retirement age, hopefully you’ll have adequately planned your estate so that you will have enough income to live comfortably. At this point, there will be several important considerations you’ll have to take into account when it comes to your estate plan. These include making sure that your estate planning documents—wills, trusts, health care forms—are completed and up-to-date and that you’ve listed your preferred beneficiaries on every document.
In addition, you’ll have to consider the specific ways in which your retirement accounts function. For example, most retirement accounts require that you withdraw at least a certain amount every year after you reach a certain age. Failure to make these required minimum distributions can result in a substantial penalty that can negatively impact your retirement plans. The age at which you must begin taking RMDs was recently raised to 73 and will go up to 75 in 2033.
Keeping Your Money
Retirement can be a complicated business, but it’s important to stay on top of it so that you can ensure that you’ll keep your money, live out your golden years in comfort, and send your assets on to your loved ones after you pass. Whether you’re just starting out as a young professional or are nearing retirement, meeting with an experienced estate planning attorney will allow you to get on top of your retirement plan.
Contact the Law Firm of Christopher W. Dumm
At the Law Firm of Christopher W. Dumm, we have many years of experience helping people plan for their retirements. Contact us today by calling 417-623-2062 or filling out the form below and get started protecting your future.