Estate planning and retirement planning are essential for ensuring financial stability for you and your loved ones late in life. While both are equally important, they are quite different from one another.
Retirement planning is setting up funds and goals to achieve a steady income after retiring from the workforce. There could be 30 years of living after you stop working, and you want to be able to have enough money saved to provide a comfortable life during those golden years.
Estate planning is choosing beneficiaries and defining what you would like done with your assets after you pass away or become incapacitated. While estate planning will include taking care of your spouse or adult children through the years, it does not require planning for your living years.
First Steps to Retirement Planning
Retirement planning starts from the first paycheck you get as a full-time employee. When you set aside a little bit of money each month, you can have a good nugget of money for after you retire. Some federal employers and large corporations will match the amount you put away for retirement each month.
If you have yet to plan for retirement, it’s never too late. Even a few years of savings will get you on the path to be financially independent after retirement. If you reach retirement with no plan for an income, you may become a burden to your children and family. Start now to set up your retirement plan so that you and your family can have a comfortable future.
Start by calculating healthcare and the cost of living for your desired retirement lifestyle. Then you can have a reasonable estimate of how much you will need to save.
First Steps to Estate Planning
A well-prepared estate plan will include a will that names all beneficiaries of your assets. It will also include a living trust, which will prevent your estate from entering probate at the time of your death.
You can also appoint a financial power of attorney and medical power of attorney in your estate plan. These people will be responsible for vital decisions regarding your wealth and health.
The purpose of estate planning is to prepare for the unexpected. Even if you are in good health, you never know what may happen that could leave you unable to make financial and medical decisions.
Do you have a plan in place to protect your family and everything you’ve worked hard for? Shoup Legal is here to help. Contact us at (951) 445-4114 or email us at [email protected].