Estate planning sounds sophisticated and “heavy”, if not downright dour. But it’s an essential element of any retirement plan. You’re dealing with the inevitability of age here, your own mortality…your very humanity. No matter how invincible you feel today, that’s not something you’ll ever outrun, outwit, out-earn – or even outlive. While you may not have much of a legacy to leave behind yet, you still need to protect your interests now.
- Your documentation might be as basic as a simple will bequeathing your modest belongings to the people that matter the most.
- Create a living will to name your power of attorney and health care proxy, should you ever need someone to make financial or medical decisions on your behalf.
- When it comes to monetary retirement savings, you will need to name your beneficiaries for pension plans and other investments that you own.
- If you’re a parent, establish guardianship for your children.
The extent to which you’ll need to plan your estate will change as you take on more financial responsibility, like home ownership; get married and co-mingle your finances; and start a family.
Seek professional advice to implement the right estate planning parameters for you, and learn more about estate planning here.