Stories of interest from around the world for those planning at one point to retire. The following was written in
September by Nancy J. Brady, RN, Esq
Women have
made significant advances socially and economically. However, planning for
major life events and retirement has not generally kept up with those advances.
Well
established statistics show that most women outlive their spouses (80 percent).
Additionally, women often play a caretaker role for elderly parents, as well as
for grandchildren (“sandwich generation”). Divorce or widowhood may result in
second and sometimes third marriages with children from prior marriages to be
considered in estate planning.
Many women
continue to rely on the men in their lives to support them, and make financial
and planning decisions. It is important for women to become knowledgeable and
aware of their specific retirement and estate planning needs.
Planning for
the various stages and roles in a woman’s life will, naturally, be different
for every woman depending upon her particular circumstances. As outlined below,
there is basic planning that every woman needs to have in place at any age, as
well as specific more advanced planning for different circumstances.
• Twenties
and thirties: The basic estate planning documents need to be in place, which
include Health Care Proxy, Power of Attorney and a Last Will and Testament. If
total assets are in excess of $1 million, estate planning will involve planning
to minimize estate taxes for your beneficiaries. If you are a parent, even if
your estate is not quite that large, you should have provisions in your Last
Will and Testament for your children — such as the ages at which you would like
them to inherit, as well as your choice for guardian for the children. Aside
from legal planning, financial planning for college for the children and
retirement planning should be in place.
• Forties and
fifties: Review estate planning documents whenever there is a change in your
life circumstances (example: marriage/divorce/widowhood/inheritance). Make sure
your elderly parents have their basic estate planning documents in place so
that you may act on their behalf without delay if they become ill or otherwise
need assistance. Consider purchasing your own long-term care insurance from a
reputable broker who will structure a policy based on your individual (income
and assets) needs. If your estate has grown significantly make sure your legal
documents are structured to maximize estate tax savings for your family.
Continually review your progress (with your financial advisor) towards securing
your retirement needs, and your progress towards those goals. The meetings with
your financial advisor should include deciding when to begin collecting Social
Security benefits.
• Sixties and
seventies: If you have not already done so, make sure to have basic estate
planning documents in place (Health Care Proxy, Power of Attorney, Last Will
and Testament). Update and make changes (with the assistance of your attorney)
to any documents particularly if circumstances have changed since you completed
the documents. Establish and implement a plan (with your attorney) to finance
long-term care (home care, nursing home care, assisted living), whether you
have a long-term care policy in place or not.
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