Retirement Savings and Income
While retirement may mean different things to different people, enjoying it requires planning. You will need to ensure that the wealth you built over the years can be sufficient for the retirement lifestyle you wish to have.
For this, it’s highly recommended to secure enough retirement income, such as through the savings strategies/sources listed below. Note that each links to an external resource:
- 401(k) plans
- 403(b) plans or Tax Sheltered Annuities
- Individual Retirement Arrangements (IRAs)
- Social Security
Consider consulting a financial expert to learn which strategy would suit you best.
Certain illnesses and other conditions may leave you incapacitated and unable to make decisions on how you wish to be treated, especially as you age. Advance directives provide a way to plan for these situations by allowing you to formally declare how you would like to be taken care of should you be incapable of making decisions yourself.
There are two types of advance directives:
- Living wills or advance health care directives
- Medical power of attorney
Living wills allow you to specify instructions for your health care, while a medical power of attorney lets you designate a person who will make decisions for you. Laws regarding advance directives vary by state, so it’s necessary to speak with an attorney in your area.
You can ensure that your assets are passed on to your beneficiaries as you wish them to be through successful estate planning. This process includes taking stock of your assets, discussing matters with your family members, and working with an attorney to draft the corresponding documents.
Similar to advance directives for health care, you can also designate a person to manage your estate when you are incapacitated through a durable power of attorney.
Retirement planning can be complex and require a lot of time and effort. However, evaluating your needs, consulting with professionals, and developing a plan will help you maximize your financial resources so you can meet your retirement goals.
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