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Save Money Now, And Plan For Retirement Later

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Social Security is set to run out in 2035.  The gig economy accounts for a greater and greater share of jobs.  Will hepatitis or monkeypox be the next pandemic, or will it be something even scarier?  Will we even be alive when millennials reach the current age of today’s Baby Boomers?  How do you plan for a retirement that may or may not ever happen?  Even if you are not sure when you will retire, if ever, it is important to start saving and planning for your old age when you are in your 30s.  You do not need to be materialistic to benefit from the services of a Washington DC estate planning lawyer; you just have to be forward-thinking.

Build Up Your Savings One Day at a Time

Saving for retirement sounds like a luxury in these uncertain times; if you have a 401(K) or similar retirement fund connected to your job, you are rich.  If you even have a job that pays you a predictable salary, you have little to complain about.  According to Amy Richardson of Kiplinger, everyone needs an emergency fund, including and especially those who earn their living in the gig economy.

Especially now that emergencies seem much more likely than your retirement date ever arriving, contributing to your emergency fund makes sense.  As it grows, think of ways you can use it for future emergencies, instead of just for emergencies that might happen soon.  You can withdraw money from it for emergencies, or even for splurges, but resist the urge to spend it on risky investments.  Think of it as a “waiting for better days” fund.

There Is More to Retirement Than Money

Even if saving for retirement sounds like as practical a use of your money as buying a bridle for the polo pony you will never be able to afford, there are other estate planning moves you should make, even if and even while you are broke.  For example, if there is anyone in the world that you care about at all, you should write a will.  You do not want to leave it to your loved ones to figure out how much property you own, even if it isn’t much, and you certainly don’t want them to have to guess whether you wanted to have your body buried or cremated.

Likewise, the younger you are when you buy long-term care insurance, the better, because you can buy it at a lower cost.  No matter how much money you accumulate in your “waiting for better days” fund, a serious illness that requires prolonged inpatient treatment can clean out the fund quickly.

Reach Out to Us Today

An estate planning lawyer can help you work on the parts of your estate plan that cannot wait, even if you are of modest means and are many years away from being in a position to consider retirement.  Contact Tobin, O’Connor & Ewing for help.

Source:

kiplinger.com/personal-finance/604750/millennials-want-a-different-kind-of-retirement

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