When you think about your retirement plan, what do you focus on? If you’re like most, you think about your retirement accounts and your investment portfolio. Why? Because those plans hold many assets designed to help you live the life you want when you’re no longer working. While your retirement accounts are certainly important, they’re not the only factor you should keep in mind when building a comprehensive retirement plan. You’ll also want to be mindful of your estate and incorporate an estate plan into your retirement planning efforts. Here’s what your Illinois estate planning attorney wants you to understand about how estate planning impacts your retirement plan.
What Is a Retirement Plan?
A retirement plan is a clear outline of what you want your finances to look like when you retire. It looks at your income, your investments, your expenses, and more, and provides you with a detailed plan for how you’ll manage your money and how you’ll keep income coming in.
The Difference Between Retirement and Estate Plans
Estate planning, on the other hand, refers to what happens to your entire estate if you pass away or are unable to make decisions on your own. Most estate plans incorporate retirement plans into the process and provide clear direction on how your retirement savings, investments, assets, and income are to be managed and distributed if you pass away.
Think of retirement plans as a component of your estate plan. You’ll need both if you want to live the life you dream of during retirement but still want to ensure that your assets are handled in the way you want them to be when you’re no longer around.
How Estate Planning Impacts Your Retirement Planning Efforts
Without an estate plan, your retirement plan may not be as complete as you think, especially if you have people you want to support or a legacy you want to leave behind. Your estate plan determines who receives the income you’re relying on during retirement and outlines the beneficiaries you designate for your retirement accounts.
Without an estate plan, a lot is left up to the state. Your assets, including the funds in your retirement accounts, savings accounts, and investment accounts, will be distributed. But they may not go to the people you want them to.
How to Integrate Your Estate Plan and Retirement Plan
Incorporating your retirement plan into your estate plan is a great way to ensure that the two are fully integrated and that you’re providing clear direction for your loved ones if you pass away. The best way to integrate these plans is to work with an experienced estate planning attorney. They’ll be able to examine your accounts, identify your beneficiaries, and create a legally binding document that provides the state with direction so nothing will languish in probate.
Estate plans can and should be updated regularly, so be sure you’re reviewing your current assets, your beneficiaries, and other similar factors at least once each year. If anything changes, you’ll want to update your plan to reflect those changes as soon as possible.
Work With an Experienced Illinois Estate Planning Attorney
If you’re worried about your retirement plan and estate planning efforts, don’t try to course-correct on your own. Instead, get help from an experienced Illinois estate planning attorney. They’ll be able to make sure your retirement plan fits into your estate plan in a way that works for your goals and benefits your beneficiaries.
Let Legacy and Life Help
If you’re looking for an Illinois estate planning attorney to help you evaluate where you stand, don’t wait. Contact Legacy & Life today to schedule a free consultation. Our experienced attorneys can help you create an estate plan that clearly outlines your wishes and helps you lay the groundwork for a legacy you can be proud of.