It is difficult to think about planning for your retirement when you are saving for your children’s college and simply trying to pay for daily expenses, but it is important to do so. Of course, the priority of your retirement will vary depending on what stage of life you are in, but you must have a plan. Below are 5 phases of retirement planning:
- Retirement planning can begin as soon as you enter the workforce. You can start setting aside funds for your retirement by taking advantage of your employer’s 401k and/or pension plan. It may be necessary to start with small contributions and increase them over time, but it is vital that you get started as soon as possible. You can earn a significant amount of money by compounding your savings.
- When you are approximately 15 years away from when you want to retire, you should start investigating your options for the conversion of your employer retirement savings into an Individual Retirement Account (IRA). You should also begin educating yourself about Social Security and other benefits. It is also imperative that you update your estate planning documents, including verifying that your end of life decisions have been made.
- During the time between the day you retire until you are approximately 70 years old, you should assess your finances, your investments and your living situation. You should confer with a professional for a projection of your cash-flow in comparison to your needs to help insure that you will be adequately protected.
- By the time you are 70 years old, it is essential that you discuss what you want to happen when your health begins to decline. While this discussion can be difficult, it is important that your family understands your wishes and that you document them (if you haven’t already done so) in a healthcare directive.
- As you grow older and your health worsens, you can rest easy knowing that your planning has paid-off. Your estate plan will allow your loved ones to carry out your wishes and you can have the peace of mind that you have done everything possible to protect yourself and your loved ones.
If you are interested in learning more about retirement planning and estate planning, contact our office today to schedule your appointment.
The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.