It is important for everyone, at all stages of life, to identify the right financial planning strategies. You need to make certain that you put your money to work for you so you do not end up without anything to show for all of the hard work that you put in over the course of your career. You also do not want to take a chance on being unable to support yourself during your old age. Having financial worries as a senior is incredibly stressful and you don’t want to face this fate when you cannot work.
Nirenstein, Horowitz & Associates, P.C. can provide you with the help that you need in identifying the right financial planning strategies to utilize. There are different strategies which are appropriate for people in different age groups and you will need to get knowledgeable advice in order to make sure you are taking the right steps based on your current phase of life.
Financial Planning Strategies When You Are Young
When you are young, you must make sure that you are preparing to set yourself up for financial security in the future. Investing when you are young can save you a lot of financial worry later since you will not have to invest as substantial an amount of money to amass a nest egg. You can begin investing for retirement as soon as you begin working, and by setting aside smaller amounts over time and taking advantage of compound interest, you can ensure that you build up a substantial amount of money by the time you are actually ready to retire.
When you are young, you may also have many other financial concerns in addition to retirement. If you have recently married or had a child, you need to make plans for protecting your family in case something happens to you. Even young people are not invincible and you must protect those you care about with appropriate insurance and asset protection strategies. You should also begin to consider investment and savings options so you can save for a family home, college, and emergencies that arise.
Financial Planning Strategies in Middle Age
The financial planning strategies you will use in middle age can vary depending upon whether you have made substantial financial investments already or not. If you have not become serious about saving for retirement by the time you reach middle age, now is the time. Look into tax-advantaged accounts like IRAs which can make it easier for you to save since the government gives you a generous tax break. You should also consider exploring what the rules are for catch-up contributions, which could allow you to set aside a larger amount of money pre-tax.
Financial Planning Strategies as you Become a Senior
When you become a senior, your financial planning focus generally shifts from investing and saving to making your nest egg last for the rest of your life. You need to be careful about how much of the balance of your investments you take out of your savings and investment accounts each year, as you want to leave enough money invested so the money can grow. You also want to ensure that you make smart and informed choices about investment options, since there are lots of people who target vulnerable seniors with financial scams because they are aware that seniors worry about their nest egg running out.
Seniors also begin to seriously consider legacy planning, if they haven’t already, and must make provisions in case of incapacity or in case of the need for nursing home care. An attorney can help you with Medicaid planning, which will allow you to protect assets and get Medicaid to pay for you to go into a nursing home if you need this type of care. An attorney can also help you to take steps aimed at avoiding probate, reducing or eliminating the amount of estate taxes due, and making sure that money is managed properly in the event that you become incapacitated.
Getting Help With Financial Planning Strategies
Nirenstein, Horowitz & Associates provides assistance with all aspects of financial planning for people of all age groups. No matter your age, or how much you are earning or have saved, our legal team can assist you in making smart and informed choices about your money. To find out more, download our free estate planning worksheet . You can also give us a call at 860-548-1000 or contact us online to speak with a financial planning lawyer who can help you.