When it comes to estate planning, many people in Texas want to leave a legacy for future generations by passing down any assets they may have accrued during life. But what some people don’t realize is that there is a lot of other planning that needs to be made before you pass away.
We’re talking of course about retirement planning and it may be surprising for some people to hear that estate planning and retirement planning tend to coincide more often than people think.
Let’s take for example your financial assets. People who want to leave behind a large sum of money to their inhabitants may have to realize that when they retire, their income may not be as large as they are used to. Keeping this in mind could greatly change when you retire and how much you end of leaving to your beneficiaries in the end.
It’s also important to think about any medical expenses that you may accrue. In a majority of cases, people don’t want to leave their loved ones with a mountain of bills. This not only lessen the amount they will receive from your inheritance but could cause considerable headache to the person in charge of your estate after your passing.
Making your intentions clear and in writing is probably the single most important piece of information that a person can hold onto when going into estate and retirement planning processes. If you don’t make your wishes known, the state could make many of the decisions for you which may make things harder on your loved ones in the process.
Whether you’re just beginning your career or a few years from retirement, it’s always a good idea to think about how your estate plans will affect your retirement, not to mention how your plans could be changed the other way around.
Source: CBS Money Watch, “Retirement planning: Get non-financial help,” Steve Vernon, March 6, 2013