Estate Planning for a Worry-Free Retirement
Estate planning for retirement is an essential so you can enjoy your Golden Years. Whether you’re new to estate planning for retirement or just want to refine your strategy, the professional estate planners at Craig Associates, PC can help you navigate through the process.
Interested in learning more about legal, effective estate tax strategies? Register for one of our free estate planning seminars to learn how to optimize your estate plan to preserve your wealth and ensure your loved ones are cared for. You can also call our office at (828) 258-2888 for an initial case evaluation.
- Why choose us?
- Glossary
Why choose us?
“We had done a fair amount of Will and Trust research before interviewing an estate attorney. Our goals were to organize our assets, avoid probate and reduce headaches for the survivors. We were considering a Trust, but had questions about complexity and asset transfer vs a Will. Chris answered our questions and provided additional information we had not considered… I would recommend Chris Craig for your estate planning needs.”
Phil R. | Asheville, NC
Here are terms you may come across on your estate planning for retirement journey.
Beneficiaries: The individuals or entities named in an estate plan who will receive the assets or wealth upon the death of the estate owner.
Heirs: Legal inheritors of the estate, usually by familial relation or legal document, after the retirement or death of the individual.
Retirement Planning: The process of determining retirement income goals and the actions necessary to achieve them, directly linked to estate planning for retirement.
Retirement Planners: Professionals who assist individuals in creating and implementing a plan for retirement, often integral in estate planning for retirement.
Roth IRA: A type of retirement account that features tax-free growth and tax-free withdrawals in retirement, affecting estate value.
Financial Advisor: A professional who advises clients on financial matters, often including retirement and estate planning for retirement.
Estate Taxes: Taxes imposed by the government on the transfer of the estate after the death of the owner.
Medical Decisions: Choices regarding healthcare and treatments, often guided by advanced directives in estate planning for retirement.
Life Insurance: A contract that pays out a sum of money upon the death of the insured, often included in estate planning for retirement.
Beneficiary Designations: The act of naming individuals or entities to receive benefits from financial accounts or insurance policies in an estate plan.
Financial Planning: The process of outlining how an individual’s financial resources will be allocated, related to and estate planning for retirement.
Retirement Plan: An arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment.
Retirement Accounts: A retirement account is a financial account such as 401(k) plans, IRAs, or Roth IRAs that are used to save and invest for retirement, often included in estate planning for retirement.
Real Estate: Physical property, including land and buildings, that may be included in an individual’s estate.
Inheritance Taxes: Taxes imposed on the beneficiaries of an estate, a key consideration in estate planning for retirement.
Internal Revenue Service (IRS): U.S. government agency responsible for tax collection and tax law enforcement, including estate and inheritance taxes.
Net Worth: The total assets minus total outside liabilities of an individual, crucial for determining the value of an estate.
Personal Finance: The management of an individual’s financial activities, which includes retirement and estate planning for retirement.
Traditional IRAs: Retirement accounts in which contributions may be tax-deductible, with withdrawals taxed in retirement.
Executor: The individual appointed to carry out the terms of a will in estate planning for retirement.
Roth Conversions: The process of changing a Traditional IRA or 401(k) into a Roth IRA, impacting taxes and estate planning for retirement.
Estate Planner: A professional who assists individuals in arranging their financial affairs to ensure the efficient transfer of assets after death.
Federal Income Tax: Tax levied by the federal government on annual income, affecting disposable income and potential estate value.
SEP-IRAs: Simplified Employee Pension Individual Retirement Accounts, a type of IRA for self-employed people and small-business owners.
Traditional IRA: A type of retirement account in which contributions may be tax-deductible but withdrawals are taxed as income.
Power of Attorney: Legal document giving one person (the agent) the power to act for another person (the principal), typically used in estate planning for medical or financial decisions.
Registered Investment Advisers (RIAs): Professionals registered with the SEC or state securities regulators, who provide advice about securities and other investment matters.
Estate-planning: The process of making a plan in advance to distribute an individual’s assets after their death, often coinciding with estate planning for retirement.
Federal Estate Tax: Tax on the transfer of a deceased person’s estate, levied by the federal government, affecting the net value of the estate.
Tax Bracket: The range of incomes taxed at a given rate, influencing financial aspects of estate planning for retirement.
Credit: The ability of an individual to borrow money or access goods or services with the understanding that they will repay later, which can impact personal finance and estate planning for retirement.
What is Estate Planning for Retirement?
Estate planning for retirement sets income goals for retirement and then helps determine the necessary steps to achieve these objectives. Many people picture their retirement as a time to enjoy their favorite hobbies, travel the world, and spend time with their friends and family—and all these activities require money, and post-retirement, your regular income sources might not be available or sufficient.
Importance of Estate Planning for Retirement
Proper estate planning for retirement ensures you have enough funds to maintain your lifestyle after you no longer have a regular paycheck and can afford healthcare and healthcare facilities for a secure, stable, peaceful, and independent retired life.
Subsidies like social security might not be sufficient for your retirement, so it is crucial for you to become self-sufficient by using sound estate planning for retirement strategies to have enough money to meet your retirement goals and manage your expenses along with unforeseen crises if any.
Key Concepts in Estate Planning for Retirement
Estate planning for retirement has several key concepts:
- Identify your retirement expenses. They typically include housing costs (rent/mortgage, maintenance), healthcare, taxes, daily life expenses, etc.
- Allocate your assets and risk management. A professional estate planning lawyer can help you make the most of your money now to ensure you have the desired retirement income.
- Use investment strategies. These can help you accumulate sufficient wealth for the post-retirement period.
- Account for social security and pension benefits. Estate planning for retirement considers your social security benefits and/or to assess how much of the retirement income you’ll receive.
- Evaluate tax implications. You’ll need to understand how tax laws apply to different retirement income streams—these can greatly impact net retirement income.
It’s never too early or late to start estate planning for retirement, and with the right plan, you can ensure financial independence in your retirement years.
Estate Planning for Retirement FAQs
1. What is a retirement income plan?
A retirement income plan is a strategic financial component of estate planning for retirement that identifies your income sources, determines size of your retirement fund, considers your desired retirement age, and accounts for your estimated living expenses to ensure you can make the most of your retirement years.
2. What are the potential sources of retirement income?
Estate planning for retirement can help you identify possible retirement income including, social security benefits, retirement savings accounts such as a 401(k) or IRA, pensions, annuities, investments, part-time jobs, and rental properties.
3. Is a retirement income plan the same as a retirement savings account?
No; a retirement savings account is a type of retirement income source, such as a 401(k) or IRA, which is typically a part of estate planning for retirement.
4. How does a retirement income plan accommodate medical care costs?
Estate planning for retirement factors in potential healthcare costs, which are likely to increase with age, and may include a health savings account, investing in long-term care insurance, or allocating a specific portion of savings for medical expenses.
5. How do I start estate planning for retirement?
Estate planning for retirement starts with partnering with an experienced estate planning who will help you assess your current financial situation, calculate possible expenses, manage income sources, strategize investments, all while considering factors like inflation and health expenses that may arise post-retirement.
Learn More Estate Planning for Retirement in Asheville
Making the most of your retirement requires a comprehensive estate plan—and our professional estate planners are here to help. Call Craig Associates, PC at (828) 258-2888, contact us using the form below, or register for one of our free estate planning seminars to start estate planning for retirement today!
