Do Your Retirement and Estate Plans Address These Four Risks?
There are a new set of challenges for retirement and estate planning. People are living longer, costs are rising and more. It is now more important than ever to have a comprehensive plan in place to address the issues that seniors are facing. An estate planning attorney can help you address the top four risks that can derail your plans:
Long Term Care and Health Care Expenses
With the average cost of a nursing home in Colorado now topping $70,000, it is now critical to address nursing home and long term care expenses early in the retirement and estate planning process. One process, known as Medicaid planning, helps position assets to preserve family wealth for seniors who may need to turn to this need-based program to help address care expenses, but planning needs to start early. Long term care insurance is another option.
Outliving Your Assets
According to a recent survey, the average person plans for less than 20 years of post retirement living. But in reality, the average person is living longer and looking for an earlier retirement. Your retirement plan will need to support you longer, and this should be a critical aspect of retirement planning.
A Rising Cost of Living
Inflation is a fact of life. While $80,000 annually may allow you a comfortable lifestyle today, what will it get you during retirement? If retirement is 20 years away, you may need as much as $130,000 annually for a similar lifestyle.
Lack of Contingency Planning
As they say, even the best laid plans….Both retirement and estate planning can change as you age and your life changes, but working with a professional can help you address the ‘what ifs’ that can derail your plans, such as incapacity, disability and more.
An estate planning attorney can help you avoid the risks that plague those who choose to turn to do it yourself planning, and these plans can address many of the situations that seniors are now facing.