Retirement Planning

While a happy and comfortable retirement is the ultimate goal of most financial plans, sound financial advice can help you make the most of what you have worked so hard to achieve.

If you think of your financial plan as a pyramid, the foundation would be protection against life’s uncertainties using insurance, the middle layer would be growing your investment and the top layer would be retirement and estate planning.

Here are a few things to consider and discuss with a financial advisor:

·          Asset allocation-When you near or reach retirement age, the ground rules for investment may need to change.

An all-stock portfolio may not make sense as some retirees and near retirees have learned over the past few years. Determining the right mix for you depends on many different questions.

That’s why it’s a good idea to meet with a financial advisor who can help you navigate the process.

·          Annuities are a financial planning tool that can help you save and then provide you with a variety of payout options, including a secure and steady stream of income you cannot outlive.

·          Estate planning basics-A properly prepared estate plan lets you pass along what you own to whom you want to receive it, in the way you want them to receive it and when you want them to receive it. A great place to start is with a will.

·          Creating a will forces you to add up all of your assets-your home, your cars, your investments, your life insurance, etc. And then specify who gets what in your estate. If you have children, your will should also specify who their guardian will be if something happens to you and your spouse.

  An estate plan should also include:

·          A living will, also known as a heath care proxy, enables you to make medical decisions that you would not like as a burden to your family.

·          Durable power of attorney allows someone to act on your behalf when you cannot be present.

·          Gifting means transferring money to someone while you’re still living and is the simplest way to reduce your estate tax liability.

·          Life insurance does something that no other product can do-it can create an instant estate. Life insurance is also a great vehicle for paying estate taxes. Managing your retirement and estate can seem a daunting task. That’s why it’s recommended that you first confer with a financial advisor with estate planning experience. Some of the most knowledgeable and professional insurance and financial advisors are members of the National Association of Insurance and Financial Advisors.

 For more information or to find a NAIFA member in your area, visit www.naifa.org and click on Consumer Info.

Retirement Planning Links