On a scale of one to ten, how high would you rate your retirement angst? If you are a woman, you’re likely to rate your worry higher than men rate theirs, according to this new study by MIT AgeLab. This begs the question; are women just more inclined to worry, or are their fears justified?

The answer to that question would seem to be the latter. According to Dr. Joseph Coughlin, a woman is “likely to outlive her male counterpart, remain active longer, and be responsible for caring for him and others.” What Dr. Coughlin seems to be saying is that women aren’t just worried about retirement, what they fear is actually a myriad of issues having to do with finances, health, caretaking, and social concerns, none of which can be separated from the others.

What this means is that there won’t be one simple solution for women to their retirement fears. Any “solution” will have to consist not only of a simple financial solution, but also of a plan to address issues such as:

• How to make up for a retirement income that is, on average, 58% of men’s.
• How to adjust if you end up caring for a family member in declining health.
• How to weather future inflation and changes in health care coverage.
• And what to do if your spouse passes away.

Women know that fear can be productive and motivate us to find solutions. Hopefully by naming this fear women will be inspired to take action to protect their futures. Men can take action to help protect their wives and mothers as well. It’s no exaggeration that women will live longer than men, and are likely to take on the burden of caring for aging family members. Planning for these eventualities when you’re young, and planning with your spouse and family can ease the burden later on.

If women out-worry men on the subject of retirement, let their planning reflect that. Nothing eases anxiety like preparation. Don’t let your fears paralyze you, let them motivate you instead.

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When it comes to retirement plans there is no one-size-fits-all situation. And not all plans are created equal. A traditional family will need a different plan than a blended family with stepchildren; a divorced man will need to plan differently than one who has never been married. How can you know which plan is right for you?

The New York Business Wire has published an article with a series of tips to help you plan for your unique retirement situation. The article caters specifically to non-traditional circumstances—such as blended families or single women—and the distinct challenges they face.

One of the article’s recommendations is to establish a trust to protect your estate from ex-spouses and keep it safe for your children. As a firm that has helped a number of families set up trusts to keep their retirement intact for the benefit of their children, we know what a crucial step this can be.

If you’re wondering whether or not a trust is really going to have what you need to achieve your goals, you should know that there are as many types of trusts to protect your retirement as there are families who need protection. Some families may want a full-blown Retirement Trust; others may be satisfied with the protections offered by the basic Revocable Living Trust. Whatever your intention, a trust can help you attain it.

Whether your situation is traditional or not, each family’s needs are unique. Talk to your attorney and financial advisor about your plans for retirement. Make sure your future is protected—for yourself and for your loved ones.

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There are some people who might question the patriotism of those who would try to arrange their affairs to pay a lower amount of taxes. But how much truth is there in that?

Is it unpatriotic to want to work within the limits of the law to reduce the amount of taxes you pay?

Everyone will have their own opinion about this, and we welcome you to join the conversation by leaving a comment. To begin the discussion we give you the opinions of two distinguished American jurists:

“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands: Taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant. “

— Honorable Learned Hand, U.S. Appeals Court Judge, Helvering v. Gregory, 69 F.2d 809 (1934).

“I live in Alexandria, Virginia. Near the Supreme Court chamber is a toll bridge across the Potomac. When in a rush I pay the dollar toll and get home early. However, I usually drive a free bridge outside the down- town section of the city, and cross the Potomac on a free bridge. The bridge was placed outside the downtown Washington D.C. area to serve a useful social service: getting drivers to drive the extra mile to help alleviate congestion during rush hour. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. If, however, I drive the extra mile and drive outside the city of Washington, I am using a legitimate, logical and suitable method of tax avoidance, and I am performing a useful social service by doing so. For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists.”

— U.S. Supreme Court Justice Louis D. Brandeis

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Celebrity divorces can hardly be considered news anymore, they happen so often, but the recently finalized divorce between Bill Murray and ex-wife Jennifer Butler Murray is news because of something they did before the wedding: They signed a prenuptial agreement.

And it worked. At least it seems to have worked so far according to the Associated Press.

Preventing painful, drawn out court battles and protecting your individual property is exactly what a prenuptial agreement is designed to do. And prenups are not just for celebrities or millionaires anymore. If you have property, or a business, or even a burgeoning career, a prenuptial agreement is worth looking into.

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Are you planning to pass an inheritance on to your children? Ron Lieber, author of this article in the New York Times, writes that leaving a financial legacy may be more difficult than you think. “With each passing year” Lieber writes, “the pressures on the nest eggs of older people will only grow.”

Lieber outlines in his article 8 possible reasons you may not end up leaving the inheritance your children will expect, but the last one is the most interesting; “the transfer of wealth will increasingly happen while the older generations are still alive.” This is because more and more people are realizing the benefits of giving tax free gifts during their lifetimes, instead of waiting to leave an inheritance.

Giving a gift during your lifetime that is within the annual exclusion amount (currently $12,000 per gift) means that you can not only have the satisfaction of seeing the recipient enjoy the gift during your lifetime, you also have the added benefit of reducing your taxable estate.

And just because you decide to give your financial gifts before your death doesn’t mean you have to give up the protection of giving your gift in trust. A trust can be created and used during your lifetime; a fact which can be especially helpful if one of your beneficiaries has special needs.

Most estate planning attorneys will tell you that if you want to spend your last dime on the day you die—so much the better! But it shouldn’t stop you from thinking about the future right now. Whether you plan to leave gifts to your children and grandchildren before or after your death, let someone in the know help you find the most efficient way to leave the legacy you want.

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If you’re wondering exactly how much you’ll have to put in the bank to live comfortably when you retire, you’re not alone. But it just got a little bit easier. You now have the recently updated retirement calculator and guide, “Taking the Mystery Out of Retirement Planning”, provided by Uncle Sam himself, to help you figure it all out. And according to The Wall Street Journal, it’s “one of the best resources available.”

We would all like to have the security of knowing that we have enough to live on when we retire. Unfortunately, we have no crystal ball that can tell us with absolute certainty how much will be “enough”. Even the above-mentioned guide from the Employee Benefits Security Administration—although updated, improved, and easy to understand—can only give you a best guess.

The best way to ensure you have enough on which to retire is simply to stay informed and be prepared. This is where your advisors can help.

Your financial planner and estate planning attorney work hand in hand to make sure you can retire in comfort. Your financial planner can help you navigate the murky waters of investing, answering questions such as “How much should I be investing? Where? For how long?” Your estate planning attorney can give you the tools to protect those investments for yourself, your spouse, and your children or grandchildren.

Don’t let fear or lack of education paralyze you. Get the help and advice you need to take your future into your own hands.

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There are times when everybody needs a little motivation to plan for the future, but when you live in a situation that is outside the norm it’s even more important to think ahead. A little motivation to plan for retirement is exactly what many same-sex couples need, according to this study published in Cornell News, at Cornell University.

When Cornell researchers Steven Mock, Catherine Taylor, and Ritch Savin-Williams analyzed data from interviews with men and women in same-sex relationships they found that gay and lesbian couples have a slightly greater tendency than straight couples to put off planning for retirement, and that the amount of retirement planning a couple will do is directly proportional to how happy they are in their relationship.

It’s not surprising that the more satisfied a couple is the more willing they are to look to the future, but the fact is that same-sex couples will have challenges enough in their futures, and can’t afford not to plan. The authors of the Cornell study note that “Nearly all state and federal legislation assumes gay and lesbian life partners to be individuals and not economically interdependent as married couples are assumed to be. This lack of recognition of same-sex couples has repercussions in terms of retirement and financial planning.”

This means that same-sex couples not only have to be diligent about their individual financial and retirement planning, but also about planning together. Because same-sex couples will not have the same tax status, or options for transfer of property upon death as traditionally married couples, it is essential that they make provisions for their partner with their estate and retirement plans.

“It would be a tragedy of immense proportions if same-sex couples who have been together for decades discover at the end of their life that they have few resources to enjoy their retirement and their last years of life,” notes Ritch Savin-Williams in the article mentioned above. But it is a tragedy that can be easily averted. With a little research, and with help from a savvy attorney and financial planner, same-sex couples can enjoy their golden years in style; healthy, wealthy, wise—and together.

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“DIS; 33.60; up; 0.30; 0.90%”

Learning about investing is like learning another language—a language of numbers and symbols and percentages. Although everybody wants to grow their money, not everybody has the time to learn this new language.

Luckily, there are an abundance of people who have learned the language of investing, and whose job it is to share that knowledge with the rest of us. But finding a professional to help can be a whole new challenge. Do you need a Financial Planner or a CFP? Will you benefit from a Stockbroker or a CFA?

Terry Savage’s article, How to Choose a Financial Planner, in TheStreet.com attempts to answer those very questions. According to Savage, the kind of advice—and advisor—you will need depends on a number of factors; what are your goals? With what level of risk are you comfortable? Do you just want advice or do you want follow-through as well?

Savage does a great job of explaining the differences between each different kind of financial expert, and the reasons for using (or not using) each. She also expresses the importance of finding a financial advisor who has some knowledge of estate planning and is willing to work with your estate planning attorney to best protect your assets for the future.

Estate planning attorneys often work closely with financial advisors, and can help you find one who is knowledgeable and trustworthy. If you’re ready to start planning for the future and getting a return on your money, don’t hesitate, call our office and let us help you.

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Your grandson’s birthday is coming up, and once again you’re stumped for ideas. You may wonder, is there something other than video games I can give him; something with a lasting value?

How about an education?

Give your grandchildren the most useful gift of their lives, and benefit yourself as well; contribute to their education with a 529 plan.

If you don’t know what a 529 plan is, The College Savings Plans Network describes it as “a tax-advantaged investment plan designed to encourage saving for the future higher education expenses of a designated beneficiary.” How does it work? According to SavingForCollege.com once you decide which state’s 529 plan is right for you and make the investment, “your investment grows tax-deferred, and distributions to pay for the beneficiary’s college costs come out federally tax-free.”

From an estate planning perspective, a 529 plan is an excellent tool for grandparents because any contributions you make to the plan are considered complete gifts, excluded from your taxable estate, and will pass to your grandchildren free of estate taxes.

Contributions to a 529 plan are attractive on a personal level as well because even though it’s out of your taxable estate you still retain control over it. The money you’ve put into a 529 plan doesn’t go to the beneficiary’s education until you say so. You can collect a refund at any time. The amount you originally contributed comes back to you tax free, with only the earnings taxed as ordinary income.

There are some potential drawbacks to a 529 plan, such as medicaid concerns and administrative expenses, so you’ll want to talk to your financial planner before you jump right in. But if you’re looking for a unique gift that will last a lifetime, and benefit yourself as well, a 529 plan might be just what you’re looking for.

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All of us know about saving for retirement, but how much do any of us know about spending during retirement? With fewer people receiving pensions, and more and more retirees using a combination of IRAs, 401(k)s, stock investments and real estate, your retirement income can begin to look like something even an economics PhD would have trouble with.

“The mathematics of this are beyond what most people could really be sophisticated at,” said Roger Ibbotson, a professor at the Yale School of Management, to New York Times writer Robert Hertzberg, in his article Making Your Money Last As Long As You Live.

Complicated mathematics means that it is unlikely most retirees (or near-retirees) have the correct equation to withdraw the amounts necessary to live month-to-month as well as continue to save for the future. There is help, however. Hertzberg’s article explains how two of the biggest fund companies, Fidelity and Mutual, “have introduced mutual funds intended to make it easy for retirees to make systematic monthly withdrawals.”

These particular funds won’t be right for everybody, but with all the different savings and retirement options available today it is definitely worth mentioning to your CFP (Certified Financial Planner) and Estate Planning Attorney.

Why your Estate Planning Attorney?

While investments and retirement accounts may seem like they rest firmly in the camp of your financial planner, the truth is that EP attorneys and CFPs often work hand-in-hand to ensure that your investments are held and protected in a way that will best serve you and your family. If your CFP can help you manage your savings, your EP attorney will work with you to make sure that your hard-earned money goes efficiently to your children and grandchildren upon your death, rather than being siphoned off by taxes or costly probate expenses.

It is never too early to start thinking about the future. Talk to your Financial Planner and Estate Planning Attorney today.

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