One of the key services that an elder law attorney can provide to you is assistance creating a retirement plan. Many people do not realize the invaluable advice that a retirement planning attorney can provide as you think ahead for your future. Getting help with your retirement plan is vital because so many people have too little savings in the United States, and you don’t want to end up not being able to do what you want in your golden years because of a lack of money. By reaching out to an attorney as soon as you can in your career, you can get the advice you need to take advantage of tax breaks and save a generous nest egg for your retirement.
Mark S. Eghrari & Associates, PLLC assists people with the retirement planning process throughout their lives. We can help you when you are younger to discover the rules for investing in IRAs and other tax-advantaged retirement accounts so retirement savings is easier. We can also provide help as you are nearing retirement and trying to decide what age it makes sense for you to retire. Give us a call today to find out more about the personalized help we can provide with important decisions about when you will leave the workforce.
Tips for Deciding When to Retire
When you are deicing when to retire, here are a few key things that you need to think about:
- What is your full retirement age for Social Security? You will receive your standard benefit you retire at full retirement age (FRA). FRA is based on your birth year. For those born after 1960, FRA is 67. If you retire before then, you experience a benefits reduction of 5/9 of 1% for the first 36 months early and an additional 5/12 of 1% per month if you retire more than 36 months early. Retiring before FRA reduces your monthly benefit significantly, while if you wait until after FRA, you can earn delayed retirement credits up until you turn 70 and get a much bigger benefit.
- Have you worked at least 35 years? When your Social Security benefits are calculated, a formula is used that takes into account your highest 35 years of earnings. If you have not worked that long when you retire, there will be years of $0 earnings factored in, which can reduce total benefits you obtain.
- How much savings do you have and will your savings last? Most experts believe you should follow the 4% rule, which means you take 4% out of retirement savings the first year you retire and then adjust this amount upwards for inflation each year. However, with lower projected rates of return and low interest rates, you may want to err more conservatively than the 4% rule. It’s important to have some plan for how much you will withdraw, though, so you don’t run out of money.
- What will you do about healthcare? If you aren’t old enough to qualify for Medicare, you need to make some plans for healthcare when you leave the workforce. Even if you’re 65 or older and get Medicare, Medicare doesn’t cover everything you need- including long-term care if you need it. Work with an attorney to explore options for making sure you can get Medicaid coverage if you need to get care Medicare won’t pay for so you don’t end up going broke spending on healthcare services.
There are likely other considerations that are specific to your situation. Elder law attorneys at Mark S. Eghrari & Associates, PLLC can help you to decide when is the right time to retire and can work with you to ensure you have the money you need to retire when you are ready.
Getting Help from Elder Law Attorneys
You do not want to be stuck working for longer than you had planned due to having insufficient savings and too little money to live on as a senior. That is why it is so important for you to work with Mark S. Eghrari & Associates, PLLC when you are as young as possible to make a plan that involves investing in IRAs or other tax-advantaged retirement plans. Our legal team will work closely with you to understand your own unique situation, to determine what you hope to achieve in retirement and to create a plan that will allow your dreams to come to fruition.
To find out more about how elder law attorneys at our firm can help with the retirement planning process, join us for a free seminar. You can also give us a call at (631) 265-0599 or contact us online at any time to get your plans underway for a secure retirement.