With a little planning, retirement can be a time to enjoy the good things in life. Some retirement planning musts —
Take full advantage of retirement investment options. Make the most of everything your employer has to offer including pension contributions and matching dollar opportunities. Invest the maximum allowable amount in an IRA (per individual) and do it every year.
Be realistic about needs. Most people underestimate the cost of retirement. Remember it’s more likely you’ll live to 100 and on average you’ll need about 70% of current income to finance your retirement. Social Security generally covers less than 30%.
Start early. $2000 a year invested at age 25 in a tax-deferred account earning 10% average annual return will become $885,000 at age 65. Start at 35 and the nest egg would total only $329,000. The $20,000 not invested in those 10 years cost $556,000.
A will is one of the single most important documents you can prepare for the protection of your loved ones. It makes certain that your assets are handled according to your specific wishes. It allows you to formulate a strategy that preserves from taxes the greatest amount of your assets for your heirs. And, it determines who will be guardian of any minor
children. A lawyer and a CPA financial planer are critical team players in helping you formulate a will.