A retirement plan is about more than just setting aside money for your own individual future. It’s natural to focus on how much income you intend to set aside and generate during retirement, however, these are not the only issues you need to consider when looking towards exiting the workforce. The three main issues you need to consider are tax planning, health care planning and legacy planning. Tax planning is important because hitting those retirement income goals won’t benefit you as much if you’re handing over far too much of that to the federal government.
Tax planning into your overall retirement plan well in advance can increase the options available to you. Health care planning is also especially critical in light of the fact that so many people will need long term care assistance at some point during their life. Some of the health-related expenses you may be likely to incur during long term care are not covered by Medicare. The most expensive and biggest issue that is not covered by any part of Medicare is long term care.
Having insurance in place or other strategies can help you accomplish this. Finally, legacy planning is crucial because there’s a good chance that you intend to leave something behind for your family after you pass away. There are numerous different ways to set up an estate plan, depending on the level of complexity you need and the strategies you intend to use. Talking to an experienced estate planning attorney may help you identify what will work best for you.
