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Most people preparing for retirement focus primarily on setting aside enough capital to leave the workforce. However, it is smart to take things a step further than that. People who plan to protect their retirement funds before transitioning to live on a fixed income can enjoy greater financial stability and the peace of mind that comes from knowing that their legacy is safe as well.
What are some of the most common tactics for protecting retirement resources?
Appropriate insurance coverage
There are many different types of insurance that can help cover long-term care costs. For example, long-term care insurance can potentially help cover the cost of a room in a nursing home. Medicare does not cover such expenses, and private insurance can be a smart choice in some cases.
Depending on someone’s age and overall health, acquiring long-term care coverage can be a smart move for those worried about medical costs later in life burning through their retirement resources. Other people could use life insurance as a means of covering costs to protect their resources from creditor claims after they die.
The creation of a trust
A trust is a viable means of protecting the resources that someone has earmarked for their financial stability during retirement. A trust changes the ownership of assets, ranging from financial resources to real property.
The assets held in a trust have protection from most aggressive forms of debt collection targeted at an individual. The decision to move certain assets to a trust could also potentially help someone qualify for benefits more easily later in life.
The establishment of beneficiary designations
Appropriate beneficiary designations can go a long way toward the protection of retirement resources. Paperwork filed with the company managing an account could allow a spouse or another beneficiary to promptly assume ownership and control over those assets after someone’s death.
There are numerous viable means of protecting retirement resources and better ensuring comfort during the retirement years. Exploring each option can help people establish the best estate planning protections given their unique circumstances. At the end of the day, retirement protection planning can be as important as basic estate planning for those concerned about high costs later in life. Contact today for a free and confidential consultation with Pennington Law, PLLC.
