Estate Planning Tips for All Ages, Part One; Younger Adults

 Posted on March 06, 2018 in Estate Planning

It is never too soon to start planning for your future. At every age, there is an opportunity to make estate planning decisions and preparations that will benefit you and your family in the future. The most financially successful individuals among us will tell you that it did not happen by accident. It is important to be aware of your financial situation and to be intentional about the way your plan for the future. At every stage of life, there are some estate planning steps that you should take in order to minimize complications or expense in the future.

Over the next few weeks, we will discuss how you can consider the future, no matter how old you are right now.

In Your 20s

If you have just graduated college or have just entered the workforce, you may think that there is no point in making any financial plans for your future. After all, you may not even have a spouse or children to worry about providing for at this point in your life. However, those who learn to budget their money and effectively manage income and expenses while they are young gain a skill which will last a lifetime.

Experts suggest that young people start the road to a successful financial future by making a keeping a budget which lists income and expenses. Secondly, if your employer offers a 401(k), 403(b), or similar retirement account with an employer matching program, do everything possible to take advantage of this program. Some employers match the financial contributions employees make to their accounts; take advantage of this “free money.”

In Your 30s

Experts suggest creating a living will and assigning a power of attorney and healthcare proxy as soon as possible. Although people in their 30s are relatively young, it is always smart to be prepared for the worst case scenario. If you change jobs, make sure to take your 401(k) or 403(b) money with you. If you cannot roll the funds over to an account with your new employer, you also have the choice of moving the money into an individual retirement account (IRA).

It is important to note that whenever you have a major life change, you should adjust your estate plans to reflect this. For example, when getting married you will want to update your beneficiaries to include your new spouse. Likewise, you will want to account for any children you have in your estate plans as well. At this point in your life, save as much as possible in both your employer-sponsored retirement account as well as in your own Roth IRA or traditional IRA. Your future self will thank you.

Contact Our Office for Estate Planning Assistance

If you have further questions about the estate planning process, an experienced Lombard estate planning attorney can help. Call 630-426-0196 to schedule a confidential consultation at A. Traub & Associates today.

Source:

https://www.forbes.com/sites/laurashin/2014/04/30/your-financial-checklist-for-every-stage-of-life/4/