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Millennials Prefer Financial Coaching

Financial planner Joe Pitzl, 34, says Millennials like himself have a different way of absorbing information than their parents and grandparents, and as a result planners in that age group take a more collaborative approach.

As reported in a recent USA Today article, titled “For Millennials goal is financial freedom,” some financial planners are finding that Millennials prefer to work with those who understand their generation. They don’t respond to the same advice given to their parents, and they’re really looking for coaching on financial health as opposed to traditional financial strategies.

This is a group that’s probably going to have several jobs in their lifetime and is used to being able to get answers with the click of a button. Many Millennials also may have a ton of student debt and may have had trouble finding a job which means that the financial strategies that worked for their Baby Boomer or Gen X parents might not fit their circumstances.

The article quotes one financial planning firm that targets Millennials. That firm noted that traditionally financial firms have emphasized the management of assets; however, the average Millennial doesn’t have much in terms of assets and is just starting his or her career. To appeal to Millennials, this firm bills itself as a "personal trainer''—guiding clients to financial health. For young professionals, these experts say that financial freedom to chart their own course is a higher priority than saving money for retirement. Likewise, the article explains that purchasing a home is also not always a top priority to younger adults who may prefer urban living, or need to relocate to chase their professional goals.

Even with these less concrete plans, having a strategy for the future and a way to finance the dreams and ambitions of a Millennial are critical. Take the time to speak with Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney who can guide you to your other qualified professional “coaches” to help you chart your course in life.

Reference: USA Today (April 11, 2015) “For Millennials goal is financial freedom”

Retirement and Estate Planning: Unmarried Couples vs Married Couples

Although some couples remain unmarried to protect their estates, that strategy backfires if you end up paying estate taxes. If you choose not to marry, you and your partner need to educate yourselves on your estate planning and retirement options.

If you’re married, you’re able to inherit an unlimited amount of assets from your spouse—without paying any state or federal estate taxes. In addition, you’re permitted to give an unlimited amount of assets to your spouse while you’re alive without filing a gift-tax return.

This exemption doesn’t extend to unmarried couples. Estates of up to $5.43 million are exempt from federal estate taxes. Some states, however, have lower thresholds for their estate or inheritance taxes.

A recent article in Kiplinger’s Personal Finance, titled “Retirement: Estate planning for unmarried couples,” explains that the tax code is also kinder to married couples as far as inherited IRAs. A spouse who inherits an IRA is allowed to roll the account into his or her own IRA, and a surviving spouse can delay taking required minimum distributions until age 70½. As he or she waits to take the RMD, the account will continue to grow tax-deferred. A spouses can also roll an inherited Roth IRA into their own Roth, and they’re not required to take RMDs.

Not so for unmarried partners.

An unmarried partner who is named as an IRA beneficiary can roll the account into an inherited IRA and take distributions based on his or her life expectancy.

Questions about estate taxes can be answered thoroughly by an experienced estate planning attorney. Talk to Robert A. Gordon of Redkey Gordon Law Corp to devise the best strategy for your specific situation.

Reference: Kiplinger’s Personal Finance (April 12, 2015) “Retirement: Estate planning for unmarried couples”

Don’t Make These Two Estate Planning Mistakes!

"The costliest errors are ones we make ourselves, often without realizing how much damage we're doing."

"Estate planning is intertwined with the financial plan," a newsmax.com article explained, and it’s no secret that many individuals fail to prepare for retirement. When doing an estate plan, the article offers some sound advice:

• Make sure an estate planning attorney examines every major financial document;
• Sign a healthcare proxy, living will and power of attorney; and
• Discuss all estate issues with your family, even if it’s uncomfortable

Those that do plan on their own make some major mistakes, and here are two:

1. Skimping on savings. The article cites a recent retirement survey in which about 50% of the near-retirees who were asked what they could have done to better prepare for retirement said they should have saved more. The more and earlier you start saving, the more your money can grow.
2. Overpaying for investments. The more you pay in investment fees, the less you have to benefit from compounding.

"The costliest errors are ones we make ourselves, often without realizing how much damage we're doing," the author notes.

Don’t make any major or minor mistakes when it comes to your future. Talk to an experienced estate planning attorney Robert A. Gordon of Redkey Gordon Law Corp.

Reference: newsmax.com (April 10, 2015) “USA Today: Don't Neglect Estate Plan as Part of Retirement Strategy”

Baby Boomers Are Neglecting Their Estate Planning

"If you are looking at Baby Boomers, they are looking at what their cash flow will be in retirement," says Carol Kroch, managing director, wealth and philanthropic planning at Wilmington Trust in Wilmington, Del. "Can they do the things they want to do? Can they retire? Can they keep the house? They are not focused on death."

Failure to consider wills and estate planning is a frequent issue, and not just for Baby Boomers. People usually think that it’s something they can put off and deal with later.

USA Today recently published an article, titled “Big retirement mistake: Boomers with no estate plan,”that offers several tips for people who might be lagging behind in their retirement savings. The article emphasizes that there are three very important things to think about when you start your estate planning (this week!):

1. Your property and financial assets;
2. Your children (if they are not adults); and
3. Medical decisions.

“Just because you are doing good retirement planning doesn't mean you are doing good estate planning, unless you address all three areas,” the article cautions, and sets out some important things to remember when you create your estate plan:

• Work with an established estate planning attorney to help you protect the safety of your financial plan.
• Get comfortable with the laws in your state, as each state has its own probate laws. Again an estate planning attorney is your best bet here.
• Update all of your beneficiaries. Retirement plan and life insurance beneficiaries don’t pass through your will.  These are totally separate and will pass based on your beneficiary designation.

Talk with Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney to review these points and others as you create your strategy for the future.

Reference: USA Today (April 8, 2015) “Big retirement mistake: Boomers with no estate plan”

Seniors Often Make These Retirement Planning Mishaps

Here are a few of the most common mistakes we’ve seen seniors make in regards to their retirement planning.

Sometimes knowing what NOT to do is just as important as knowing what to do. So it is with retirement planning.

Physician’s Money Digest lists some of the most common mistakes that the authors have seen seniors make in a recent article titled “Top Mistakes Seniors Make”:

1.  Misinformation about Medicare.  Some seniors believe that once they qualify for Medicare, they are 100% covered without any gaps. Unfortunately, there may be issues, such as nursing homes and assisted living for long-term care. These are not covered under Medicare.

2.  Failing to consider mental incapacity. Many seniors don’t address how they want health care and property decisions handled in the event they are incapacitated. Remember, a will doesn’t take this scenario into account.

3.  Drawing from retirement accounts too soon. Withdrawing money from your retirement accounts too soon or too late can really affect your savings. Speak with an estate planning attorney about the retirement account rules to get the most from your assets.

4.  Mis-timing life insurance decisions. You should assess your life insurance needs and current premiums to determine what is appropriate in your circumstances.

5.  Relying on annuities. Whether an annuity is the right choice depends primarily on your specific financial situation. Conduct an in-depth assessment of the product and your overall financial plan with estate planning attorney.

As you can see, there are many issues that need to be addressed when it comes to retirement planning. Do not go it alone. Get appropriate professional counsel. Speak with Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney.

Reference: Physician’s Money Digest (April 8, 2015) “Top Mistakes Seniors Make”