40
PALM TREE
Planning for Today and your Legacy
Although talks about paying for senior care can be emotionally charged, they are necessary. It is important to understand what services you require and everything that is included. Understanding what financial options are available can help streamline the search.
Tax and Cost Considerations
Some people enter retirement with investments in both taxable and tax- advantaged accounts. Which accounts should you draw money from first or later in retirement? To answer this question, and other retirement pitfalls, a qualified financial professional would need to review your financial situation so they can better understand your goals and risk tolerance.
A few financial adjustments may help you manage your tax liabilities. The biggest mistake is having no strategy at all. Without a strategy, you may have no goals, leaving you no way of knowing how you’ll get there—and if you’ve even arrived.
Holistic Portfolio View
Just like a car needs routine maintenance, so do your investments. Without the help of a financial professional, retirement and estate planning is not impossible, but can be a very tough and long process. It is important to evaluate your investments to make sure they still align with your current risk tolerance, time horizon, and goals/objectives. Times change and so do investments, so making sure that capital preservation and risk tolerance are completely in line with your current attitude can save time and money for the future.
Succession
When you lose a spouse, partner, or parent, the grief can be overwhelming. In the midst of that grief, life goes on. There are arrangements to be made, things to be taken care of and important decisions to be made. Stay informed.
The estate laws have seen many changes over the years, so, what you thought you knew about them may no longer be correct. A great first step would be to gather documents, including but not exclusively, a will, a trust, or other estate documents. If none of these exist, you could face a longer legal process when settling the person’s estate. As well, notify creditors and credit card companies that were part of your loved one’s credit history.
Creditors may want to know when existing debts will be paid, either by you or your loved one’s estate. Investment and retirement plan accounts and insurance policies should have beneficiaries, so reach out to a trusted and reputable financial professional to effectively handle changes in ownership or liquidation.
A financial and law professional can help determine if the inheritance fits with your overall goals, time horizon, and risk tolerance. Talk with these professionals to learn about the possible tax implications from inheriting these assets.
40 ELDER LIVING GUIDE
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