Many people only focus on what’s happening inside their portfolio at this very minute. A recent Kiplinger article asks, “Is Your Retirement Plan Completely Backward?” According to the article, many investors have their tools, but not a plan.
That’s backward, because retirement planning is a process. Consider these steps:
Your financial strategy should help protect and preserve the assets you don’t draw from month to month. Your tax strategy should also legally keep more money for your family. Your health care strategy needs to address rising medical costs and look at long-term care options, in the event of a chronic illness.
Your legacy strategy must ensure that your money is passed on to your beneficiaries in the most tax-efficient way, and your estate doesn’t wind up in probate. Talk to an estate planning attorney about trusts and other protections to prevent your IRA from becoming fully taxable to your beneficiaries upon your death.
Reference: Kiplinger (June 26, 2018) “Is Your Retirement Plan Completely Backward?”
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