As a retiree with a substantial investment portfolio, you’re wise to consider your estate planning options. While a will and healthcare directive are essential, you may want to explore additional strategies to ensure your assets are distributed according to your wishes.
A revocable trust can provide control over how your assets are used after you pass away. However, if your estate is relatively straightforward and you’re comfortable with your two adult children inheriting your assets equally, you may not need a trust. Instead, consider adding your children as beneficiaries to your bank accounts, brokerage accounts, and life insurance policies to avoid probate.
Beyond estate planning, it’s crucial to prepare for potential long-term care costs. A long-term care policy can help alleviate the financial burden of nursing-home care, which can exceed $125,000 per year. The sooner you purchase a policy, the lower your premiums will be.
An elder-law attorney can help you navigate the complexities of estate planning and long-term care. They can assist in taking inventory of your assets, income, and expenses, and develop a plan tailored to your needs.
Other considerations include appointing a financial power of attorney, updating your beneficiaries, and reviewing your will to ensure it’s current. You may also want to diversify your investments, as the “100 minus your age” rule suggests allocating no more than 32% of your assets to the stock market at 68. Tax diversification is also essential, and you may want to explore Roth IRA contributions or conversions to minimize taxes.
By taking a holistic approach to your financial planning, you can ensure a secure and comfortable retirement, with or without a revocable trust.
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