One of the main goals of retirement planning is to steward your assets in a way that lets you enjoy those years the way you want. Factors like reducing tax burdens and working to protect your resources from market volatility are all great for helping you achieve your dreams. But looking at retirement holistically means taking those steps with an eye toward leaving a legacy that also fulfills your wishes. Whether it's leaving assets or heirlooms to your loved ones or making gifts to causes and organizations you care about, you don't want uncertainty or a lack of clarity to tie up your estate in legal battles or bureaucratic red tape.
Missed parts one and two?
Insurance Considerations in Retirement
Insurance isn’t just a safety net, or a last-ditch resort; it can be a powerful strategic tool, a proactive defense against life's uncertainties. Think of it as your potential financial bodyguard, constantly vigilant, helping to protect you from unseen threats and potential financial catastrophes. But here are the crucial questions: are you using it correctly? Are you leveraging its full potential to safeguard your retirement?
Let’s dig into the often-misunderstood world of insurance in retirement. Many people mistakenly believe that once they stop working, their insurance needs diminish. The reality, however, is often the opposite. The risks don't disappear; they evolve, and require a different kind of protection.
Life insurance, for example, isn't just about providing a death benefit. Certain life insurance policies, like permanent life insurance, offer cash value accumulation, which can be used for supplemental retirement income, or to fund long-term care expenses.8 It’s about building a financial fortress, helping to ensure your loved ones are protected and your assets are preserved.
Another critical, and often overlooked, consideration is long-term care insurance. We must face the reality that as we age, the likelihood of needing long-term care increases.9 Medicare, unfortunately, does not cover the costs of long-term nursing home care,10 and Medicaid has strict eligibility requirements that limit your options and often restrict your choice of facilities. A well-structured long-term care policy can protect your assets from the potentially devastating costs of extended care, ensuring you receive quality assistance without depleting your retirement savings.
Imagine this scenario: You require long-term care, and without insurance, you're forced to deplete your assets to pay for it. Not only does this impact your own financial security, but it also affects your ability to leave a legacy for your children or grandchildren. A long-term care policy can help prevent this, giving you and your family peace of mind.
Our approach involves working closely with you to assess your specific insurance needs, including factors such as your age, health, family history, and financial situation. We'll develop a personalized strategy that not only helps to safeguard your financial security but can also provide you with invaluable peace of mind. We'll explain the different types of insurance policies, their benefits and drawbacks, and help you make informed decisions.
Estate Planning for Your Legacy
Can you trust that your assets will go where you want them to when you're gone? Bad terminology puns might make you chuckle, but without proper legacy planning, it could be lawyers, IRS agents and bankers getting the last laugh.
Your estate is far more than just a collection of assets; it's the culmination of your life's work, your legacy. But without a well-structured plan, that legacy could become a tangled legal battleground, a source of stress and division for your loved ones. We're here to show you how you can protect it, how you can ensure your wishes are honored, and how you can preserve your legacy for generations to come.
Are you truly confident that your estate will be distributed according to your precise wishes, and in a timely manner? Many people assume a simple will is sufficient, but do you understand its limitations? A will, while essential, primarily guides the probate court. And let's be clear: probate is something we want to help you avoid.
Probate is a legal process that can be lengthy, costly, and incredibly complicated.18 It's the court-supervised administration of your estate, and it can significantly delay the distribution of your assets to your beneficiaries. Imagine this: your family, already grieving your loss, is forced to navigate a maze of legal procedures, paperwork, and potential disputes if you only have a will. And it’s even more complex if you own property in multiple states, because your estate may have to go through probate in each one of those states,18 each with its own unique and often complex legal process. Sometimes it can help streamline things if you have all your estate documents filed in the state where you reside. In some cases, though, depending on the state, not doing so can lead to significant delays, added expenses, and unnecessary stress for your family.
Another way to simplify this process and ensure your assets are transferred efficiently and according to your wishes is by exploring beneficiary designations and trusts. Beneficiary designations allow you to directly transfer specific assets, like life insurance policies or retirement accounts, to named beneficiaries, bypassing probate altogether.19 Trusts, on the other hand, are powerful legal tools that allow you to control how and when your assets are distributed, even after your passing. They offer greater flexibility, privacy, and protection than a simple will.
For instance, you might want to ensure your grandchildren receive funds for their education, but you want to control when and how those funds are distributed. A trust allows you to specify these conditions, ensuring your wishes are followed precisely.
We understand that estate planning can seem daunting, but it doesn't have to be. We offer comprehensive estate planning services at a reasonable cost, using licensed attorneys covering all 50 states. Our team of experienced professionals will guide you through the process, helping you create a plan that aligns with your unique circumstances and goals.
Our ultimate goal is to help you create an estate plan that not only protects your legacy but also provides for your loved ones. It's about ensuring your hard-earned assets are passed on according to your wishes, minimizing taxes, and providing peace of mind for you and your family. Don't leave your legacy to chance.
You’re Not Alone
Chamberlin is here to help you navigate the options and create a plan tailored to your needs, goals and dreams. Visit our online Learning Center for more retirement resources, and If you're ready to take the next step, we invite you to schedule a call with one of our experienced retirement educators today to take the first step toward a confident financial future.
Remember, your retirement dreams are closer than you think. Don't wait to build the retirement you deserve – take action now!
References
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- Blanchett, D., Finke, M., & Pfau, W. (2017). Low bond yields and safe withdrawal rates. Journal of Financial Planning, 30(1), 50–59.
- Social Security Administration. (n.d.-a). Benefits Planner: Retirement. Retrieved from https://www.ssa.gov/planners/retire/
- Congressional Research Service. (2021). Social Security: What percentage of income do benefits replace? Retrieved from https://crsreports.congress.gov/product/pdf/R/R47055
- U.S. Bureau of Labor Statistics. (2023). National compensation survey: Employee benefits in the United States, March 2023. Retrieved from https://www.bls.gov/news.release/ebs2.nr0.htm
- Social Security Administration. (n.d.-b). Benefits Planner: Social Security's delayed retirement credits. Retrieved from https://www.ssa.gov/planners/retire/delayretire.html
- U.S. Department of Labor. (n.d.). Continuation of health coverage (COBRA). Retrieved from https://www.dol.gov/general/topic/health-plans/cobra
- Investopedia. (n.d.-a). Cash value life insurance. Retrieved from https://www.investopedia.com/terms/cashvalueinsurance.asp
- Administration on Aging. (2020). Long-term services and supports. Retrieved from https://acl.gov/ltc
- Genworth. (2023). Cost of care survey. Retrieved from https://www.genworth.com/aging-and-you/finances/cost-of-care.html
- Morningstar. (n.d.). Understanding the 2000-2009 Lost Decade. Retrieved from https://www.morningstar.com/insights/archive/understanding-2000-2009-lost-decade
- Tax Foundation. (n.d.). U.S. federal individual income tax rates history, 1913-2023. Retrieved from https://taxfoundation.org/historical-income-tax-rates/
- Tax Policy Center. (n.d.). Historical average federal income tax rates. Retrieved from https://www.taxpolicycenter.org/statistics/historical-average-federal-income-tax-rates
- Internal Revenue Service. (n.d.-a). Roth IRAs. Retrieved from https://www.irs.gov/retirement-plans/roth-iras
- Internal Revenue Service. (n.d.-b). Retirement topics - required minimum distributions (RMDs). Retrieved from https://www.irs.gov/retirement-plans/retirement-topics-required-minimum-distributions-rmds
- Social Security Administration. (n.d.-c). Benefits Planner: Income taxes and your Social Security benefit. Retrieved from https://www.ssa.gov/planners/taxes.html
- American Bar Association. (n.d.). What is probate? Retrieved from https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning_info_center/probate_the_basics/
- Nolo. (n.d.). What happens if you own property in more than one state? Retrieved from https://www.nolo.com/legal-encyclopedia/what-happens-if-you-own-property-more-one-state.html
- Investopedia. (n.d.-b). Beneficiary designation. Retrieved from https://www.investopedia.com/terms/beneficiary.asp
- Farrell Financial Freedom. (n.d.). Why Ronald Reagan only made two movies per year. Retrieved from https://farrellfinancialfreedom.com/why-ronald-reagan-only-made-two-movies-per-year/
- Internal Revenue Service. (2025, February 13). Federal income tax rates and brackets. Retrieved from https://www.irs.gov/filing/federal-income-tax-rates-and-brackets
