How Can Retirement Planning Impact Your Estate Planning
While it is crucial to work with an experienced attorney to craft an estate plan to provide for your family after you are gone, retirement planning is also a key component to preparing for your future. Understanding the relationship between retirement and estate planning is key. Both retirement planning and estate planning are financial strategies that focus on the future and should be a priority for adults of any age.
Retirement planning refers to financial planning to prepare for your later years in life and to use retirement accounts, savings, investments, and other financial planning strategies to support both you and your family once you reach retirement age. Meanwhile, estate planning refers to planning for the period after you become incapacitated or pass away, often focusing on ensuring your family and loved ones are taken care of once you are gone. Thus, it may be helpful to consider retirement planning as a more-broad strategy, which includes a thorough estate plan.
Failing to pursue crafting both retirement and estate plans together risks leaving a gap in either plan that could lead to unintended consequences in the future. The sheer number of rules that apply to many retirement accounts makes it critical to crafting your retirement plan alongside your estate plan—for instance, understanding your retirement savings, funds, and investments and their tax consequences on your estate plan. Crafting both strategies together allows for your estate plan to adequately accommodate your retirement savings and accounts and to plan for their distribution after you pass away.
A skilled attorney like Mark Gullotta can work with you to advise how your savings and investment goals at each stage of your life may impact your future estate planning goals.
Why You Should Begin Planning for Retirement Early
The earlier you begin preparing for your retirement, the more options you will generally have for ensuring you and your loved ones will be in a financially sound and comfortable position. Many adults put off retirement planning for the same reasons they put off estate planning because they do not want to plan that far in the future, or they do not wish to consider their own mortality. Many young adults or couples may also believe they cannot yet afford to begin saving for retirement and instead focus on more immediate purchases or financial strategies. However, it is never too early to start planning for your future and ensuring you set yourself and your family up to be in the best possible financial situation.
Your retirement planning may include considering any employer-provided retirement accounts such as a 401(k) program or pension. Your attorney may often also walk you through organizing any potential investment opportunities or strategies.
By beginning your planning early, you may have more options, such as the ability to take risks in investing instead of relying on safe investments with low returns. Further, by starting to save for retirement, you reduce the amount of money you may need to save because you will have additional time to compound interest. Finally, beginning your retirement planning earlier may allow you to retire earlier by taking advantage of these financial benefits.
Overall, beginning your retirement planning supports your estate plan by ensuring you will have an inheritance to pass on to your loved ones after you are gone. As Americans continue to live longer, especially with medical advancements, planning for your retirement early becomes more critical than ever, especially if you intend to have a nest egg left to pass on. After walking you through your options to plan for your retirement, you should then work with your attorney to craft and include an estate plan within this broader retirement plan.
How Can Attorney Mark Gullotta Help You?
Retirement planning can be very complicated, especially as you consider accounts to invest in, other financial planning strategies, and look to allow your family to live comfortably when you are gone.
By hiring an experienced Burlingame estate planning attorney like Mark Gullotta, you can begin working to make sure your retirement goals align with your estate planning goals.
You should call the Law Office of Mark Gullotta as soon as possible to begin planning your and your family’s future. Mark can work with you to ensure your retirement complements your estate plan to benefit you in your later years while still leaving a nest egg to help support your loved ones after you are gone. Contact the Law Offices of Mark Gullotta today.