Estate Planning Law

Four Important Retirement Questions to Ask Yourself at the Beginning of Your Estate Planning Process

Planning for retirement is never easy, especially in the digital age. With all of the options out there to save, invest, and even retire early, it’s difficult to know where to begin. There are many decisions to make when you start thinking about your future in retirement. 

One of the most important questions you’ll need to ask yourself is how much money will be enough for you in your time of need? Here are four important questions to ask yourself at the beginning of your estate planning process. You might be surprised by what you discover!

When Do You Plan to Retire?

It’s important to know what your goals are. If you want to retire early, you need to make plans for that now. If you want to retire at a certain age, you need to know what you need and when you need it. The earlier you plan, the more time you have for your investments to grow and produce more money.

It’s also important to know when you plan to retire so you can put the right amount of money into your retirement account. The more years until your retirement date, the more you should save. If your retirement date is less than ten years away, you should save 10% to 15% of your income each year. And if your retirement date is ten or more years away, you should save between 5% and 10% of your income each year.

Another reason to know when you plan to retire is so you can make the most of your savings. If your retirement date is less than ten years away, you should invest in stocks because there is a higher chance they will grow in value before your retirement date arrives. And if your retirement date is ten or more years away, you should invest in bonds because there is a lower chance that the price will change before then.

Where Do You Plan to Spend Your Retirement?

Where you plan to spend your retirement is an important factor in deciding how much you’ll need. For example, if you plan to spend your retirement traveling, your expenses might be higher than if you plan to stay home.

It’s important to think about how many hours you’ll work during your retirement and how much money will be coming in. You also need to consider the cost of healthcare and housing and what your monthly expenses will be.

You might choose to spend your retirement at home and pay for home maintenance. But if you plan on staying in a retirement community, it’s important to consider what the monthly fees for living there will be.

Another factor is the cost of healthcare during your retirement years. If you are planning on living in retirement communities or assisted living, the cost of healthcare is usually included in the monthly costs. But if you are planning on staying at home, it’s important to think about the cost of healthcare during your retirement years.

It’s estimated that healthcare costs will be about $269,000 for a couple between the ages of 65 and 67 with Medicare coverage, so it’s important for you to plan for that expense.

What Do You Truly Enjoy Doing?

One of the most important questions to ask yourself is what you will do with your time in retirement. After all, retirement is a time to focus on yourself and your personal needs.

If you’re not sure what you want to do, here are a few questions to ask yourself:

  • Do you want to take up a new hobby?
  • Do you want to start a new business?
  • Do you want to travel the world?
  • Do you want to volunteer?

When you think about it, those questions are not only important to consider as preparation for retirement, but as part of your life now. That’s because they help you enjoy life now and make the most of your free time to do what makes you happy.

So, as you’re preparing to enter retirement, ask yourself those questions. It will help you prepare for retirement and make the most of your time in the here and now.

What if Things Don’t Go According to Plan?

One of the most common concerns people have is what will happen if their future is different than they planned. A good rule of thumb is to estimate the amount of money you’ll need to live on after retirement and then save around 20% to 30% more than that. This is an important question because the future is unpredictable. And you’ll want to make sure you’re ready for anything.

Call Doane & Doane for Your Estate Planning and Retirement Needs

The answers to these questions will help you decide where to save, what types of investments to choose, and how much money you’ll need for your retirement.

Thinking about retirement can be intimidating. It’s never too soon to start the process of creating a plan for your future. Take the time to ask yourself these four important questions and find out if your current plan is in line with what you need. 

Your estate planning lawyer can assist you in these areas and provide guidance and direction moving forward. We invite you to call Doane & Doane for all of your estate planning needs in Southeast Florida. You can reach us at 561-656-0200. Or, you may fill out our online contact form to get started.

The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.