Financial planners tell you to begin saving for retirement when you’re still in your 20s. Start as early as possible and save as much as you can, they advise. Estate planning attorneys tell you to create your first will, power of attorney, and advance directive when you’re in your 20s. Update those documents as your life circumstances change, they counsel.
A financial plan and an estate plan are two essential components of a retirement plan, but they aren’t the only ones. Aging raises questions that estate plans and nest eggs don’t solve, such as:
- How can I make sure that I’m not forced to move into a nursing home when my health fails?
- How can I make sure I don’t lose assets to uncovered health care and long-term care costs?
- How can I make sure that I don’t become a burden to my family as I age?
The answers to these questions won’t be found in your estate plan or your financial portfolio.
How do you plan for housing when your health fails? How do you plan to pay for long-term care when the bill can run $10,000 or more each month? How do you plan to avoid recruiting family members into service as your unpaid caregivers? How do you plan to make sure that your agents manage your affairs the way you prefer?
LifePlanning answers these questions, but it only works if you start in time.
So, how early is early enough?
Elder law attorney Rajiv Nagaich suggests that the best time to create a LifePlan is when you have ten more years of good health left. Short of a crystal ball, how do you determine that? One option is to look at the life span of your parents and other older relatives. Find out how old were they when their health failed, and then do the math.
It’s an inexact science. Guesswork is required.
For most of us, starting on a LifePlan for retirement between ages 50 and 60 will be soon enough.
If you’re older, don’t wait. The time is now.
Are you ready to create a retirement plan that answers ALL the questions?
