For residents of Texas and elsewhere, taking care of one's retirement years in advance is often a task that is put off until tomorrow. However, each tomorrow brings one closer to those years where he or she will start to relax more, and begin to progressively wind down the activity levels due to age, health and natural evolution. For the early-born baby boomers, they must now say hello to the beginning of an eighth decade of life. Being 70 may be a great eye-opener for estate planning purposes, as one looks back on all of the joys and battles and concludes with some deserving pride that indeed he or she can be rightly called a survivor.
It is not a time for fretting about old age -- indeed, statistics today give a person more than a 50 percent chance to reach 85, which is much better than their grandparents, who had only a 28 percent chance. Now, in fact, more than one in 10 boomers will reach age 95. Do not forget, furthermore, that that percentage may be substantially improved by scientific advances in the next several years.
It is important to experience the golden years with the proper financial foundation to assure that they may be enjoyed to the fullest. Some suggestions can be made here, but space is limited. Boomers will benefit greatly by consulting with their financial advisers and estate planning attorneys to keep abreast of all obligations and opportunities. For example, certain withdrawals must be made from 401(k) and other retirement vessels after age 70 ½. Otherwise, steep negative tax consequences could result.
Additionally, a durable power of attorney can be created by consulting with one's estate planning attorney. This will save substantial time and money if a person becomes mentally incapacitated. After all, sharing with beloved children and grandchildren is a great benefit generally of life in this country. However, that benefit can be squandered where preventative measures and advanced planning is not carried out. So, Happy New Year, and Happy 70th Birthday to the early boomers in Texas and everywhere else who have survived the tests of time and who look forward to many joyful years ahead.
Source: time.com, "Happy 70th Birthday, Baby Boomers!", Liz Weston, Dec. 28. 2015