When planning for retirement, there are several things to consider, not least what you will do with yourself. Too many people work and save hard all their life in preparation for their retirement. Yet they then get ill and die within a few years without ever having enjoyed the money they put aside or fulfilled the dreams they put off.
There is more to a retirement plan than saving
Putting aside sufficient money for retirement is vital. However, there is more to it than that. Here are some things to think about when planning for your future:
- How you will spend your time: Keeping physically and mentally active in retirement can significantly benefit your health and increase your lifespan. It can also save you money. The less you spend on health care, the more you have to enjoy or pass to your children.
- How you will access your money: Part of creating an effective estate plan is creating a realistic retirement budget. Ensure you use financial tools that allow you to access the funds you need to live. Make sure you do not tie up too much in an irrevocable trust or another thing that could prevent you from accessing extra money should you need it.
- Having too much can be as bad as having too little: If you die with too much wealth, the Internal Revenue Service (IRS) may take a large percentage of it when you die. There are many ways to reduce or eliminate taxes paid on the transfer of your assets. If you have plenty, consider giving some to charity. If you prefer to keep it in the family, use gift allowances or trusts.
You have probably spent your life looking forward to retirement. Don’t let a lack of planning spoil it.