Thorough Planning Extends Beyond Both Spouses

Excellent financial planning goes beyond accumulation, distribution and preservation to legacy continuation. Tools are available to perpetuate assets’ growth far beyond the life of the originator. Retirees can take satisfaction in creating a legacy for their family and community.

Despite the many threats to retirement assets – market volatility, emergencies and depletion, to name a few – retirees may not exhaust their nest egg. Thorough retirement planning includes “family transfer” and considerations that accommodate spouses, children, and charities.

The motivation for such provisions is usually a desire to take care of one’s spouse. But once accomplished, legacy planning can be impactful for generations to come. However, without discussion or guidance, the surviving spouse may be unaware of impacts to income, taxes and health insurance. Social Security – a cruise control component of monthly income by way of direct deposit – reduces at the first death. Adjusted gross income, the basis of taxes, can increase due to a lost personal exemption of the deceased partner. Ripple effects could increase Medicare cost, as premiums are means tested.

The economic leverage of life insurance and its potential tax advantages can multiple assets to targeted family beneficiaries and charities. In recent years, generational planning has evolved into four generations planning strategies based on ever-increasing longevity. If it is a reasonable expectation that seeing your great grandchildren could become a fact of life, then planning for 100 years may not be science fiction anymore.

An additional option is for the originator to make a conservative annuity allocation of several years’ duration that exceeds CD and money market rates and includes market upside potential and protection against loss.

While death is certain and generally occurs in retirement., it’s rarely ever known in advance. Accordingly, any retirement plan should not be considered complete until family transfer considerations are addressed or specified.

Syndicated financial columnist Steve Savant interviews top retirement specialists in their field of expertise. This segment features retirement specialist Chad Lewis. Right on the Money is a financial talk show distributed in daily video press releases to over 280 media outlets and social media networks.