How Proper Estate Planning Can Make Retiring a Breeze
Retirement is a chance to enjoy your life without constant work. Yet many who are close to retirement age worry about whether or not they can afford it. There are many myths which have sprung up about the retirement process which make things more confusing. Angermeier & Rogers, LLP Law Offices provides retirement planning for Wisconsin residents of all ages. Thanks to our experience, we have the answers to the retirement myths we frequently hear about from our clients:
- Myth: You Can’t Retire Until 62 (or 65, 66, or 70)
- Myth: You Can Retire Whenever You Want
- Myth: You’ll Spend 20%-30% Less After Retiring
- Myth: Medicaid and Medicare Will Cover All Post-Retirement Health Costs
- Myth: Social Security Will Cover All Living Expenses
- Myth: Your Pension, 401(k) or IRA Will Cover All Post-Retirement Living Expenses
- Myth: You Need a Part-Time Job after Retirement
- Myth: Taxes Will Be Easier After Retiring
- Myth: It’s Impossible to Retire Early and Leave an Inheritance for Your Children
- Myth: Retirement Planning Can Wait
- Myth: It’s Too Late to Start Saving for Retirement
The “official” retirement age has changed over the years. While some companies may start offering retirement pensions to workers past the age of 62, others may not have the option until later or at all. Social Security eligibility doesn’t begin until age 66, though some individuals may be able to receive certain benefits as early as 62. Careful retirement planning means being able to retire before or after these ages.
Many workers plan to work until at least their mid-60s in order to maximize 401(k), IRA, and Social Security retirement savings. Unfortunately, health issues and changing industries can often force people into early retirement. Someone who planned to work until 70 may need to stop at 60 for their own well-being. A comprehensive retirement plan will help you plan for these situations.
While some retirees assume they’ll have a more modest lifestyle after retiring, they often discover they have higher costs than before. Traveling and new hobbies can quickly add up for retirees. Medical costs are another major expense after retirement. The idea of only needing 70% of your income after retiring is a risk that leaves many retirees in financial danger.
Medicare is a federal program for US citizens with disabilities or over the age of 65 while Medicaid is designed to help low income individuals of any age or ability. Retirees may be eligible for both if they meet certain conditions, regardless of their age. Certain health procedures may not be fully covered by either program and some services may be capped. Dental, vision, and hearing are not covered. Angermeier & Rogers long-term care planning now will make it easier to address health issues after you retire.
Social Security is designed to act as a supplementary form of income for citizens. The maximum payment is under $3,000 a month. It is rarely enough for retirees to maintain their current lifestyles on Social Security payments alone.
Pensions and 401(k) employer-based savings plans have become less reliable as companies change. IRA (individual retirement account) is similar to a savings plan and independent from your place of employment. While some companies offer 401(k) matching and IRAs have advantageous tax benefits, when you start saving and how much you put in will determine if either is enough for your retirement plans.
Many retirees volunteer or take on part-time jobs in order to spend their time, not to fund their retirement. Proper retirement planning means you won’t have to scramble for another job right after retiring.
The first year after retirement will involve some very difficult taxes. In the state of Wisconsin, retirement income is taxable. This means all the money saved from a 401(k) or IRA is taxed. If you are married, your spouse’s income will still be taxable.
The right estate planning service can maximize your savings. This includes having enough leftover in a will or trust for your children, grandchildren, and closest friends. Angermeier & Rogers has estate planning services designed to work with your retirement plan.
Retirement is a chance for you to enjoy yourself after a lifetime of work. Putting off saving for retirement can really leave you in a lurch when you realize you won’t have enough. Planning early means not worrying later. After all, starting earlier in your career means you have more time to save.
There are many reasons you might have put off saving for retirement. It is vital you visit the retirement attorneys of Angermeier & Rogers as soon as possible to create a plan for your future.
Notice a common theme to these myths? Almost all of them revolve around proper retirement and estate planning! Angermeier & Rogers attorneys help countless retirees in Milwaukee, Waukesha, and Cedarburg plan for their perfect retirement. Whether you are just starting at out your first job or are weeks away from retiring, our attorneys are ready to help you prepare.