Three Tips to Maintain Your Savings in Retirement

Approaching retirement means thinking about your finances and your working life differently. For plenty of soon-to-be American retirees, it’s just as important for them to protect their savings as it is to have a good plan for spending it during their retirement years.

There are many different risks that can impact retirement plans today, most particularly, their impact of long-term care expenses. Three tips can help retirees be more mindful of the balance inside their retirement savings accounts and how best to protect it. The first of these is to look for a fiduciary or a financial advisor who will put your best interests ahead.

There are many different financial professionals who are targeting the retiree market for those who are high net worth. It’s a good idea to work with someone who has a fiduciary responsibility and will help you understand where you are at now and where you hope to be in retirement. The second step is to make sure that you have an advanced wealth planning strategy and a relationship with an estate planning lawyer.

An estate planning lawyer could help you see some of the different ways that your retirement plan could be affected, not only to support you in your older years but to leave gifts behind for your loved ones. Finally, think about the big picture.

Maintaining wealth goes beyond income and investment returns. Look for advice from a variety of professionals that can help you better understand things like health care planning and taxes. For more information about drafting a retirement plan that aligns with your estate planning goals, schedule a consultation with an estate planning lawyer in Virginia Beach today.

 

 

Three Changes to Retirement Savings That Might Impact You in 2021

The CARES Act or the Coronavirus Aid Relief and Economic Security Act gave some significant benefits to retirement savers in 2020. However, the disappearance of these in 2021 means you may need to consider alternative planning options. The first major change has to do with required minimum distributions. In 2020, the CARES Act enabled savers to skip required minimum distributions. However, these will need to be restarted in 2021. The second change relates to retirement plan withdrawals.

Under the CARES Act individuals younger than age 59 and a half are eligible to remove up to $100,000 from their retirement accounts without being subjected to the typical 10% penalty. The early withdrawal penalty, however, is back in effect in 2021 so don’t make any sudden changes or removals to your retirement plan anticipating that you may be able to leverage this now expired benefit.

The third issue relates to retirement plan loans. Savers with particular 401(k) plans were eligible to borrow as much as $100,000 from their accounts and to defer payments on those loans for a year. Although that change has been expanded into 2021, you’ll need to be with your financial professional to determine if you meet the qualified disaster requirements to do so.

The amount you are eligible to contribute to retirement plans in 2021 hasn’t changed. IRA investors can set aside up to $6,000 and those who are older than age 50 can set aside another $1,000 for a total annual contribution of $7,000. For more information about how this might affect your estate plan, set up a consultation with a lawyer in Virginia Beach.    

 

What Questions Should You Ask Yourself for a Purpose Driven Retirement?

Anyone who is approaching retirement has likely had a sense of purpose their entire life. This makes it all the more important to view this transition as yet another opportunity to open this new chapter in your life with a good sense of purpose. Looking ahead to retirement is not always just about exiting the workforce.

Do you know what you want your retirement to look like? And have you created all the tools and plans to make that happen? To accomplish your goals and help make this transition easier, be thoughtful about the process.

In fact, you might want to think about how you’ll navigate this transition by asking a couple of key questions that will help you prepare for a purpose driven retirement. These include:

  • Which goals do you have and how will you prioritize them with your new time? Do you want to pick up a new hobby, start a new business, or volunteer somewhere?
  • Can I still afford to enter retirement at the age I originally planned to? Recent events and changes in your own investment portfolio might prompt you to step back and look at whether or not now is the right time to retire or whether you may need to adjust your plans.
  • How will I incorporate giving and philanthropy into my overall financial and retirement strategy?
  • Do my estate planning documents still align with what I intend to happen during my older years and after I pass away?

Now could be a great opportunity to engage the services of professionals who can help you navigate this new transition and ensure that you have thought about it from all different perspectives. Schedule a consultation with a trusted estate planning lawyer to learn more about this.

 

Is it Time to Revisit Your Financial Plan?

Deciding to retire brings with it a variety of different logistical decisions that need to be made but also plenty of emotions about making this transition in your life. Concerns about your financial future and excitement for the new freedom you might face are both common feelings and many people have these at the same time.

By reviewing or executing a financial plan for your retirement, which incorporates your estate plan and how you intend to take care of yourself in older age and pass on assets to your children will give you peace of mind so that you have something to build and adapt from.

A comprehensive financial plan needs to include many different components, looking at each aspect of your individual retirement. This includes spending habits, the design of your current portfolio, account balances, personal retirement plans like gifting, estate planning and travel, and insurance planning.

Each of these plays at least one small part in your overall retirement playbook. It’s a good idea to look at things from the data that can give you a good idea of what you need to have saved and some of the challenges that you might experience if you don’t adapt your savings plan now.

Plenty of people are nervous about having enough set aside for health care expenses, for example, so you might want to discuss with your elder lawyer whether or not the long term care plans you have in place will be enough. Schedule a consultation today with an elder lawyer in Virginia Beach to learn more.

Study Shows the Pandemic Has Influenced Retirement Plans

Retirement and estate planning are inextricably linked. This means that you can’t consider one without properly considering the other, and world events can certainly have an impact on your overall level of confidence in your estate planning.

A recent study by the TransAmerica Center for Retirement Studies found that one out of five millennials say that their confidence in their own ability to comfortably retire in the future has declined because of the pandemic. That decline increases based on the survey respondent’s age.

A total of 32% of Baby Boomers feel like they have lost confidence in their ability to retire comfortably with one quarter of GenX expressing the same concept. Every generation certainly faces challenges with their retirement strategy, these three generations have a lot at stake.

Those three groups are most important for the purposes of this research project because they are the most prominent groups in the workplace today. Many in each generation already had plenty of work to do when it came to saving for retirement. Even though millennials have the longest period of time to build up their savings and the weather some storms in the stock market and beyond, they also have the most significant student debt that’s hanging over them.

Boomers were already hit hard by the great recession and the pandemic might only increase those challenges and GenX has already been noted in numerous studies as behind in their retirement savings and also crippled by credit card debt. This is a good opportunity to reevaluate your prospects and goals. Scheduling a consultation with an estate planning attorney in Virginia Beach could be the first step.

 

 

Retirement Planning Beyond the Basics

There’s no doubt that the workforce is changing and as more baby boomers are reaching retirement age, this is also raising questions about how retirement is different. Traditional retirement planning might not cut it anymore, particularly if you’re not using comprehensive estate planning tools to target your goals. What is important to consider is making a written retirement plan for your financial and non-financial aspects of your life.

Establishing habits now before retirement makes things easier. While money is certainly a crucial component of your overall retirement plan, you shouldn’t be afraid to use some of the savings you’ve established to create a better life now instead of waiting until later. For example, investing in relationships and in better health can pay off in spades and cut down your overall costs in retirement.

Retirement is ranked 10th out of 43 total stressful events. Some people feel disoriented or overwhelmed in the first couple of years of retirement. There’s no doubt that you’ll be concerned about your life savings being gone before you are, and this is why traditional retirement planning largely focuses on the money.

However, don’t forget about non-financial retirement issues. Living longer makes many people confused because they don’t know what to do about it. Some people fear that living longer just means they are less capable for longer periods of time due to incapacitating events or cognitive issues.

Long-term care planning, brain health considerations, and life insurance are all important. Putting together a written non-financial estate plan should begin by looking at things like family beliefs, values, and traditions. This makes it a lot easier to identify the legacy that you intend to pass on to future generations with ease. Schedule a consultation with an experienced estate planning attorney in Virginia to learn more.

Where Should Wealthy Clients Consider Retiring?

If you are currently amassing a great deal of wealth and are concerned about long term planning for your tax bill, you are better off retiring in Michigan, according to a new study. The study completed by online finance tool company SmartAsset ranked eligible states by the total amount of taxes that you might pay, including your property, state, federal income and estate taxes.
Some of the more expensive parts of the country included Oregon, Rhode Island and Vermont. These had the highest tax burden and therefore ended up at the bottom of the list whereas others like Florida broke the top ten as some of the best places to retire.
States located in the middle of the U.S. faired relatively well for people who had amassed wealth for retirement, excluding states like Wisconsin, Illinois, Tennessee, Nevada and Florida. The study looked specifically at state and federal income taxes for the top 1% of earners. The reported level of estate taxes in 2016 was more than $18.3 billion, according to data collected and presented by the IRS.
The most number of estate tax returns filed during 2015 came from California, followed by Florida and New York. More than 5,000 households filed estate taxes across the country. If you are curious about protecting yourself and the wealth you’ve worked so hard to build, schedule a consultation with an experienced estate planning lawyer today.
 

What’s Next on Your Retirement Planning List?

You’ve probably been intending to retire your entire life, but have you really considered your day-to-day actions and how they can contribute towards your overall retirement plan and goals?
The support of an experienced estate planning lawyer is instrumental as you get closer to retirement because it is likely you will have numerous different questions and issues that must be addressed in line with your retirement. Thankfully, there are ample tips that you can implement into your daily life to ensure that you are ready for retirement when it comes.
As you get closer to seeing retirement into your own view, sharpen your focus on your retirement goals. It’s a good opportunity to revisit your retirement plan and to figure out where you stand. If you’ve gotten off track in recent years, take action to get back on it, whether this is contributing more to your savings, tighter budgeting, or a combination of both.
Catch-up contributions can be powerful for boosting your retirement savings BlueCross they allow you to contribute additional money to your 401k or your Roth IRA. Adjust asset allocation to changing circumstances. You might need to evaluate asset allocation on a periodic basis whenever you achieve a milestone in your life such as the birth of a new child or getting married.
Make sure that you have a Social Security and retirement date strategy. You cannot afford to overlook these opportunities because how you adjust your estate planning and retirement planning date with Social Security can have significant impact on your future and can make things much easier for you when you have the full picture of how your life will be affected.
Retirement doesn’t have to be difficult- but you do have to plan for it. Bringing in the right team of professionals will help you target all your top retirement goals and ensure you stay on track.
The support of an estate planning lawyer is helpful in this situation because many people overlook the various aspects of how their estate plan and their retirement plan do indeed work together. Schedule a consultation with an experienced estate planning attorney today to learn more.
 

Don't Have Children? Here Are Five Tips for a Better Retirement

Looking ahead into your retirement years while not having children might give you some peace of mind because you may be able to better support yourself and your health needs. However, you could still end up an elder orphan. Roughly one third of people between the ages of 45 to 63 are currently single and most of those people never married or were divorced at the time that the study was completed. This study was published in The Gerontologist.
The study also found that less women are having children, so this means that baby boomers might have a smaller network than they anticipated to help with basic assistance, guidance and care which is often required by people as they get older. Furthermore, childless retirees could face additional obstacles or even some advantages in their retirement years, all of which are worth considering. Without children or a spouse, the odds of becoming isolated, either socially or physically, can increase dramatically.
Much of the care for today’s elders is provided by family. Those isolated older people who do not have a solid support system are more likely to have trouble completing activities of daily living. These same people are also tied to a higher rate of mental decline and a reduced ability to fight infections.
Did you know that rules surrounding Medicaid are state-specific? Your concerns about Medicaid should always be addressed directly by a lawyer who has experience in this area and one who can keep you informed about the best way to plan in advance and how to put together your application if and when the time comes. Overlooking Medicaid planning opportunities could compromise your retirement.
Getting appropriate support and considering your options in advance is extremely valuable. Since it is estimated that nearly 70% of people will require long term care but less than half of those people think that they need it, it’s good to look ahead into the future and consider tools such as long-term care insurance or advance Medicaid planning provided by an committed and understanding VA attorney to help accomplish all your goals.
 
 

Be Prepared for Changes in Retirement

Retirement brings about many different questions, particularly what you are going to do with your time. It’s also still a good idea to think about what will happen going forward as you approach your individual relationship with your spouse and your family members.
Having conversations about financial matters or how you will divide up your time may initially seem difficult but it can also be a great way to broach these issues well in advance. This is especially important because a recent retirement study conducted by Fidelity Investments identified that one out of every three couples were not on the same page when each person was asked to describe their anticipated lifestyle in retirement.
Shared visions of retirement as well as what you hope to accomplish with your estate planning goals can ensure that everyone is on the same page and minimize the challenges typically linked to the transition into retirement.
Far too many conflicts and problems with family members emerge after a loved one has passed away or gone through a difficult change in their life, such as incapacity, because of lack of communication. Including the communication process now greatly reduces the challenges linked to deciding how to move forward and ensures that both you and your spouse have a well thought out plan for what will happen when you do reach retirement age.
Your estate planning lawyer can be an excellent resource.