The very essence of saving for retirement is to accumulate a nest egg sufficiently large enough to replace the retiree’s employment income and sustain a stable standard of living throughout retirement. If the prospective retiree doesn’t have enough saved up to maintain his/her lifestyle for the next several decades, it’s not yet time to retire.
Yet a growing volume of research studying the actual spending habits of retirees is revealing that this traditional approach may not be entirely appropriate after all. Because as it turns out, retirees don’t actually maintain a stable lifestyle in retirement; instead, spending levels tend to decline (in real terms), as the retiree goes from the “Go-Go” early years of retirement, to the “Slow-Go” years, and eventually the “No-Go” years.
In addition, not only does retirement spending slow in the later years, but the underlying composition of the retirement spending begins to shift as well as clients cross through these “age bands”, as spending on housing and entertainment activities fall significantly in the later years, while health care expenses are rising. Still, though, discretionary spending tends to fall by more than health care expenses rise – leading to an overall decrease in retiree spending as retirees proceed through the age bands…
Estate planning focuses on three key areas: Documenting your wishes, Stewardship Goals and Tax Efficiency.
At Capital Planning, our experts can work with an attorney to help you document your wishes and protect your family. We can guide you on the benefits of a Will, Power of Attorney, Advanced Health Care Directives (Living Wills) and Trusts.
Stewardship planning can help you protect your heirs from potential risks such as creditors, divorce, or poor money management skills. Stewardship can also help you meet your goals for charitable giving and life’s passions.
Tax efficiency planning can save your family upwards of 50%+ in taxes when combining estate tax, inheritance tax, and capital gains tax planning strategies.
If you would value advice on any of the above, book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.
Many people are curious to understand the potential tax benefits available to them. Questions such as “Is a 529 plan right for me and my goals?” are common, and at Capital Planning, we’ll be happy to guide you on this and any other questions you have.
We can work with you to conduct an analysis of funding needs, and provide recommendations as to investment allocation, ultimately helping you to select the right investments for your goals.
Book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.