Retirement planning is not just for seniors anymore. Honestly, the goal is to have a plan in place way before you reach retirement age. In fact, it’s really never too early to begin planning for your retirement!
At 23 Legal, we believe: the sooner, the better. Whether you’re in your mid 20’s or early 50’s (or somewhere in between), retirement planning is the best way to secure your future, protect your interests, and have a plan for any situation that may arise.
Wouldn’t your future self (and even your family) be relieved to know you’ve planned accordingly? Retirement planning means securing your future for a comfortable lifestyle in your golden years. Many Americans now consider saving and investing for retirement; yet still 33% of American workers don’t have a retirement plan in place (yikes).
Our real estate attorney, Ben Weaver, is here with some expert tips to help plan your estate proactively…
What is Retirement Planning? Why is it Important?
Retirement planning begins with a number in mind. You decide your retirement income and lifestyle goals, then work on achieving them.
No one can overstate the importance of estate and retirement planning. Here are a few reasons why you’ll benefit from proper retirement planning:
- Financial Security: A retirement plan ensures that you can live comfortably during your retirement. You can maintain your desired lifestyle without having to worry about dissaving. Thinking about establishing a trust?
- Peace of Mind: With a retirement plan, you can be at ease about your future. With your investment and income secured, there will be no anxiety about an uncertain future.
- Tax Efficiency: A proper retirement plan is not just financial security for the future – it is also a financial instrument to help you minimize your tax liabilities. It saves more funds for your retirement.
- Legacy Planning: Retirement planning also means planning your estate. You can dictate how to split your assets after your demise. Estate plans also enable you to care for your loved ones’ after you’re gone.
- Healthcare Preparedness: Healthcare needs to change as you grow older. You need more medical help and may even require a healthcare proxy. Having a retirement and estate plan ensures your medical needs can be taken care of through your trust or a power of attorney.
23 Legal’s Expert Retirement Planning Hacks
While retirement planning may sound daunting and difficult, you don’t have to do it alone. Illinois’ leading real estate attorney Ben Weaver has some tips that will help guide the way…
- Start Early: This one is quite obvious. The earlier you start, the more you can save through your compounding investments.
- Get the Right Professionals: To get the most out of your estate plan, find the right professionals to help you. Hire a real estate attorney and a financial advisor to manage your assets effectively.
- Establish a Living Trust: A living trust is a financial instrument. It allows you to manage and get profit off your assets in your lifetime and distribute them according to your wishes. A living trust helps you maintain privacy by avoiding probate.
- Get Your Legal Documents in Order: When you have an estate plan, it is essential to have all your documents up-to-date. If you want to make any changes, do so and ensure that you have the latest documents at all times. If you’ve been divorced, make sure you update your plan!
- Safeguard Your Finances: Retirement goals can change over time as do the market conditions. Hence, it is important to keep revising your investments and portfolios to align with your retirement goals. This will also help manage your finances and investment returns better.
- Protect Your Healthcare Rights with POA or Proxy: You can secure your healthcare choices by assigning a healthcare power of attorney (POA). A POA has the authority to make decisions on your behalf when you are incapable of doing so. Having a healthcare POA helps you maintain the same level of healthcare that you did earlier.
- Minimize Debt: To have a worry-free retirement, reduce high-interest debt such as credit card debt before you retire. This will reduce your financial burden during retirement. Think about selling your home in this next phase.
- Create a Budget: Estimate a retirement budget by listing all potential expenses during retirement. This will help you get an idea of how much you need to save and will influence your retirement plan.
How to Start Retirement Planning Properly
If you’re unsure about how to start retirement planning, we’re here to lead the process smoothly. Here’s a step-by-step guide to get on the right track.
- Assess Your Financial Situation: To start your retirement plan, you must consider your current income, expenses, savings, and investments.
- Define Your Goals: Next, you need to set your retirement goals. What you want to do and how you want to live during retirement will help you set your goals.
- Seek Professional Assistance: Consult with an estate planning expert such as Ben Weaver. They can help you make plans that suit your needs and financial situation.
- Save and Invest Regularly: To accomplish your retirement goals, you must start saving today. Start saving a portion of your investment in accounts like 401(k)s and IRAs.
- Review and Adjust Your Plan: An estate plan isn’t made once and fixed. You should update it as your financial situation or lifestyle changes.
Do you have questions? Click here for answers to the most common questions our clients ask!
Preparing for a Joyful Retirement with 23 Legal
Estate planning and retirement planning can be complex. Not only does it involve financial complexity, but also legal requirements that can be hard to navigate if you are not an expert. That’s why countless Illinois homeowners put their trust in the 23 Legal to take care of all their real estate legal and estate planning needs.
Ben Weaver can help you establish your goals, create a customized estate plan, appoint Powers of Attorney (POA), and so much more. With us by your side, you can sort your estate and retirement plans with ease knowing you have trustworthy professionals guiding you. Connect with us today and let’s start working towards your bright future!