Planned Giving Guide
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Being financially secure in retirement takes planning that begins early and never really ends. As you age, your situation and your financial and long-term goals change. The following checklists can help you with your planning-no matter what stage you're at in life.
Ages 40-49
- Take advantage of employer matches to 401(k) retirement plans.
- If you haven't already, create a will.
- Strike a balance between saving for your kids' college and saving money for retirement.
- Make sure your parents are managing their finances wisely. You'll have more to save for your retirement if your parents can be self-supporting in their later years.
- Aggressively save for retirement. Take advantage of so-called "catch-up" plans that allow you to increase contributions to retirement plans.
- Look at your current spending and estimate whether your retirement needs will be met by Social Security, savings or withdrawals from your retirement plan. "At this point, it's not too late to save more or plan to work longer," says Warren Ward, CFP, of Warren Ward Associates in Columbus, Ind.
- Shift to a more conservative investment strategy as retirement nears.
- Update your will if major life events occur, such as births, deaths, marriages, divorces or a move to another state.
- Consider long-term care insurance.
- Consult with a financial planner at least five years before you retire to make sure you are on a sound financial track.
- Make sure your will and estate planning documents reflect your current wishes.
- Live within your budget so you don't outlive your assets.
- Begin taking required withdrawals from your IRAs when you reach age 70½. If you don't need the income, consider taking advantage of recently extended legislation and make tax-free charitable gifts from your IRA until the end of 2009.
- Decide whether your current home will meet your needs as you grow older. Maybe it's time to consider a move to a retirement center or a single-story house. Your current home could still be the best choice, maybe with some modifications for health needs or physical limitations.
- Discuss finances and other issues with a trusted advisor.
- Inform close family members of your final wishes and where you keep vital papers.
- Update a health care power of attorney, which allows you to designate another person to make medical decisions if you are incapacitated, and a living will, which deals with end-of-life situations.
- Take pride in reaching age milestones. Enjoy your family and friends.
Copyright © The Stelter Company, All rights reserved.
The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to income tax apply to federal taxes only. Federal estate tax, state income/estate taxes or state law may impact your results.
