It can be a major mistake to wing your retirement planning and hope that things will work out for the best. Saving money for your retirement is certainly important but you also need to think about several careful issues as you
approach the process of estate and retirement planning. These include:
• Thinking about inflation and taxes. You might have been putting money in a 401(k) or an IRA and gained the benefit of deferring taxes. Unless the assets are inside a Roth IRA, however, when you begin to withdraw that money, the IRS wants a piece of it, too. Make sure you don’t think of all the funds inside your account as being yours.
• Think carefully about expenses and determine whether you have enough sources of income during retirement. For you, this could be rental income, social security or a pension. Then use this to evaluate the level of monthly income that you would need to support your expenses.
• Make sure you have an estate plan. One of the most important elements for individuals approaching retirement to have can help to avoid probate with the assets placed inside that trust as well as mitigating any estate taxes that your beneficiaries might pay.
If you have more questions about the estate planning process, contact an experienced New Jersey estate planning attorney today. The sooner you accomplish your estate planning, the better you’ll feel about retirement, too.