Did you know we’re living longer these days? As Americans, our average life expectancy has moved into the high 70s or low 80s.
People living longer also means more medical costs and more dependency on retirement investments and savings to sustain their lifestyles. In some cases, Americans are working further into their “retirement years” to meet new financial challenges. As a society, we may need to consider how to stretch the money we have to comfortably live out those golden years.
Rising Healthcare Cost
A problem is health spending continues to outpace basic inflation and economic growth, so the “new normal” we’ve adjusted to is not sustainable. Instead, we will need to be vigilant in exploring all our healthcare options, compare prices, and do more work on our end to make sure we can manage the cost. While thinking about your estate plan, you may need to include resources for an unexpected short or long term disability or major medical issue for you and your spouse.
Savings
How much do you have tucked away in your savings account right now? If it’s less than $500, you aren’t alone. Recent studies have shown that 6 out of 10 Americans do not have enough money saved up to handle a $500 emergency and its created a financial stress on many communities. Americans are facing new challenges and management of finances – and especially once they enter retirement and are living on a fixed income- are a valid concern for most Americans. It’s prudent to consider all your options now or in the early stages of adulthood to protect yourself against the unexpected. Setting up a trust or financial management tool can help ensure your spending stays on track and that you are adequately preparing for an enjoyable retirement.
Retirement
For most, starting your investment journey and learning how investments work is difficult—terminology can be frustrating, constant fluctuations in the stock market, mutual funds, and the economy is intimidating, and figuring out how much of your income to put towards retirement is hard. Of course, investments can be done through many avenues and a financial advisor can help connect the links as far as information and knowledge go. Even if investing is intimidating, starting sooner rather than later can be advantageous and even low-risk investments are better than none. An aging U.S. population will rely on those retirement funds more and more.
Plan Well
How does this impact your estate plan? Aside from draining your estate before there’s a chance to pass it down to the next generation, most Americans need to consider all their options and how best to set up their will to accommodate their lifestyle and provide the legacy they hope to pass on to future generations—you can change your family tree and a well drafted estate plan can help you achieve those goals.
At Weldy Law, we regularly engage with clients looking to create a solid estate plan, asset protection, or an established trust. Ready to set up a consultation? Contact Weldy Law, PLLC and we’ll discuss Texas estate laws, how our process works, and discuss questions you might have.
The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.