John Ruskin (1819-1900), one
of the most influential English critics of the 19th Century,
once said: "In order that people may be happy in their work,
these three things are needed: They must be fit for it. They
must not do too much of it. And they must have a sense of success
in it." The same three things might be said of retirement.
You must be fit for it. Are
you ready to retire? Financially, that is? Remember, when you
retire your financial circumstances may change drastically. Instead
of working and gradually adding to your retirement nest egg,
you will have much more free time and numerous opportunities
to spend what you've saved. Will you be able to live within the
boundaries of your retirement budget and still maintain your
present lifestyle? And how will your retirement affect your investment
philosophy?
For example, many retirees reduce their investment
risk when their working days are over; they seek income rather
than growth from their portfolio. Still others give up managing
their investments altogether, relying instead on a revocable
living trust. Through such a flexible arrangement, you can designate
a trustee to take care of managing your assets while the trust
meets your other financial planning needs.
You must not do too much of it. Too
much of a good thing—either during your working career or
during retirement—can be hazardous to your health, especially
as you get older. No one likes to dwell on this fact but, as
you age, your chances for long-term disability increase. And,
though you may never experience a disability, you should be prepared
for it just in case.
You should know ahead of time who will manage your
assets, take care of your family's financial responsibilities,
and make sure that you get the long-term care you may need. You
can prepare your contingency plans with a revocable standby trust
which goes into effect only under certain circumstances. You
decide ahead of time how and when the trust will operate, and
if your predetermined circumstances actually occur, your trustee
will take over—immediately. You may even use such a trust
to manage your affairs while you're on vacation or simply unavailable
for any length of time. And, because the trust is revocable,
you can change or cancel it at any time.
You must have a sense of success in
it. Managing your assets during retirement should
not be a burden; after all, you've earned the right to relax
and enjoy your leisure. Your estate planning should not be
a burden either. Worrying endlessly about your estate plan
and about whether or not your spouse and family will be able
to manage your estate after you're gone will not change anything.
What you need to do is plan accordingly.
One easy way to ensure the success of your estate
planning is to alleviate your lifetime asset management concerns
and your estate planning worries by implementing a revocable
trust that becomes your estate plan when you die. Whatever assets
are not included in your trust can be "poured over" into the
trust under the terms of your will, the beneficiary designations
of your insurance policies, and the payout options of your retirement
plan. The result will be a unified estate–distributed and
administered according to the terms of your trust.
Are you ready to retire? Or are you already
retired and looking for help with your asset management or
with your estate planning? The revocable living trust is only
one of the many financial tools that can be used to help you
meet your retirement needs. A Security Mutual
Life Representative, working in conjunction with your other
professional advisors, can be instrumental in helping you plan
for the best financial future for your family. Please contact
us if you have any questions or are in need of planning
assistance. (Legal Notice)
Visit
Our Planning Library
R 01/07
|
