Seven Principle of Wealth - Number Six

Six, estate planning is very important when you think about generational wealth. Estate planning is not only about providing for your family when you die but it also includes retirement planning. You want to have assets/money available to you when you are no longer working. When you begin the estate planning process, you cover all of your financial arrangements for the present, future and beyond.

Actions Recommended: Again as mentioned in other principles, you want to begin saving at your job and taking full advantage of any matched savings program. Retirement assets should not be placed in risky ventures as you age and even when you are younger your risks should be well calculated.

Retirement benefits and estate planning

Whenever I learn something new, I just can not wait to share it with my readers. I attended a seminar this week and we discussed how one might leave their retirement plan to a loved one. The tax favored approach would be to to:
1. Leave it in Trust to a young individual. The life expectancy of that individual will be used to determine the payout period.
2. Leave your retirement benefits outright to your spouse. There are all kinds of benefits to the surviving spouse, one of which is the rollover into their own retirement account. This benefit is not available to other beneficiaries.
3. Leave it in Trust to a Charity

The least tax favored arrangement for retirement benefits would be
1. Leaving it to an older individual
2. Leaving in Trust for the spouse
3. Leaving it to your Estate

So you want to think about this very important asset when having your estate planning done.

Contact my office for a free consultation about this and other estate planning matters.