Anyone who has any assets, including money, insurance policies, or possessions, has an estate. If you want to make sure these things go to the people you want and in the proper amounts, it is important to have an estate plan in place.
What about money for retirement?
Many families can better organize their financial affairs when they know about the many solutions that are available to them. However, when is the best time to start saving for retirement?
The answer is simple: as soon as you can. Ideally, the best time to begin is when you begin earning a paycheck. The sooner you begin saving, the more time your money has to grow.
Tax-favored retirement accounts, such as individual retirement accounts (IRAs) and 401(k)’s are the best places to save for your retirement. Most plans allow you to defer taxes on the money you save and the returns you earn within the account.
Tax deferral means that the amount you contribute escapes income taxes until you start withdrawing the money years later. Another advantage is that many employers will match part of your contributions, especially in 401(k) plans.
How much money should you save?
The answer is: as much as you can. If you begin saving in your 20s, you should try to save between 10% and 15% of your income for your retirement. It’s a good idea to speak to a financial advisor or an experienced estate planning attorney who will help you establish a savings target – one that tells you about how much you should set aside over time to meet your retirement goals.
Creating an estate plan and planning for retirement is the responsible thing to do. It does not have to be complicated or expensive.
Don’t put off making an estate plan; contact us to discuss your options.