Creating a retirement plan is one of the single best things that you can do in order to make sure that your golden years are filled with joy, rather than financial worries. The sooner you begin the process of creating a retirement plan, the more organized you can be about setting aside assets and structuring your accounts in a way that allows you to maximize your savings and protect your financial security.
Creating a retirement plan can be complicated, no matter what stage of your life you are in. Whether you are younger and just developing a plan for your future or whether you are in retirement and concerned about how long your nest egg is going to last you, you need to get qualified and experienced legal advice. An Essex Junction retirement planning lawyer at Unsworth LaPlante, PLLC can provide you with invaluable advice and assistance in making sure you have a solid plan for a retirement you will enjoy.
Key Issues That Can Affect Your Retirement Plan
Some of the key issues that will affect your retirement plan include:
- The amount you plan to save, or have saved, and the types of accounts you have. There are many different kinds of tax-advantaged retirement accounts, including 401(K)s, SEP-IRAs, traditional IRAs, Roth IRAs, and Simple IRAs. Different kinds of accounts have different rules. For example, with a traditional IRA, pre-tax money is invested whereas with a Roth IRA you invest with after-tax funds but money grows tax free. You’ll need to make a plan on how much to invest and in what types of accounts when you are younger. As you enter retirement, you need to know the rules for withdrawing from your accounts and paying taxes on money that is taken out.
- Plans for paying for long-term care. According to the Wall Street Journal, more than 70 percent of people in the United States who are 65 or older will end up needing long-term nursing home care at some point over the course of their lives. Once a person is at least 65, he has a 40 percent chance of entering a nursing home. For those who enter nursing facilities, there is a 20 percent chance of being in the care facility for at least five years. The cost of nursing home care is very high (often upwards of $100,000) and plans must be made for how to pay for this care. In some cases, the purchase of long-term care insurance is a viable option. In many other situations, strategic planning makes it possible to protect assets and qualify for Medicaid coverage of long-term nursing home care.
- Risks of health issues and plans for paying for healthcare. Healthcare is a serious concern for many seniors. While Medicare provides coverage to senior citizens, Medicare does not cover 100 percent of all medical bills that patients may incur. With patients required to pay 20 percent of the cost of hospital services and forced to pay some portion of prescription costs and other medical expenditures, the cost of healthcare can be very expensive even with Medicare. Supplementary insurance may help to protect financial stability during retirement to avoid dangers associated with high medical costs.
- Issues related to family finances. Seniors who enter into retirement may be divorced or may be entering into their golden years with a spouse by their side. Many retired seniors also still provide some assistance to children who may need ongoing financial support from parents. If you are divorced, you may have a portion of your pension funds being diverted to your ex-spouse. If you are married and your spouse gets sick and needs nursing home care, you could face the possibility of spending down assets unless Medicaid planning has been done in advance. It is important to consider how retirement is going to affect your ability to continue providing for your family. Many retirees opt to create trusts to ensure that when beneficiaries inherit money or property after death, the money is managed wisely.
- Your goals for retirement. How much do you plan to spend traveling, seeing the world, building your dream house and fulfilling other goals? How much can you actually afford to spend. Careful and informed budgeting is one of the keys to retirement planning.
How an Essex Junction Retirement Planning Lawyer Can Help You
Don’t leave your retirement plan up to chance- your future is too important. For help creating a plan, building your retirement assets, and protecting all that you have worked for, contact an Essex Junction retirement planning lawyer today. Unsworth LaPlante, PLLC provides personalized one-on-one service to clients at all phases of retirement planning. Contact us online or give us a call today to learn more about how we can help or download our free report to find out some retirement planning basics.