A new study conducted by Financial Engines determined that only one third of U.S. employees with annual incomes between $35,000 and $100,000 have a comprehensive and tailored financial plan. This is compared to approximately half of all employees who earn $100,000 or more every single year.
Wealthier American employees do tend to have more comprehensive financial plans than their middle income counterparts but it is important to remember that estate planning is something that can benefit every different demographic. Plans for middle income workers are much less likely to address several crucial issues like purchasing disability or life insurance or thinking ahead about saving for a child’s college education.
Both upper income and middle income plans, according to the study, tend not to address critical topics such as strategies to maximize benefits received from social security and the adequacy of a savings rate. Taking advantage of working with an experienced estate planning attorney can open your eyes to all of the various avenues and strategies available to someone considering estate planning. Those individuals who did have a comprehensive plan also tended to save more towards their retirement.
Aside from saving more money and having a clear picture of your own future, putting together your estate planning documents now gives your loved ones peace of mind so that there are less disputes and conflicts if you were to pass away suddenly.
