You’ve worked hard, and made a series of decisions throughout the years, that have helped you to accumulate adequate retirement assets to maintain your lifestyle for the next ten, twenty, or more years. Now, as you shift gears and ease into retirement, you should probably make some decisions on protecting those assets.
Yes, you might re-evaluate your risk tolerance after you retire, but we’re also talking about protecting your assets from medical and personal problems that often arise late in life. It’s not always a happy matter to confront, but the truth is that some of us will experience age-related memory or cognitive decline, and we could become our own worst enemies in terms of financial planning. It is usually impossible to predict who will be affected by dementia, illness, or accidental injuries that could leave us incapacitated.
That’s why we urge every retiree to create a Plan B, just in case of unexpected medical problems. Hopefully you will never need to put Plan B into action… But if you do, it could save you thousands or even millions of dollars.
At this time, meeting with an estate planning attorney can help you to review your options. One common solution is to establish a springing power of attorney, which “springs into effect” in the event that you are incapacitated. It’s a safety plan that will only be used in the event of dementia, debilitating illness, or serious injury.
If you take action now, you can choose your own power of attorney. Otherwise, a court could end up making this appointment on your behalf, and perhaps they might not choose the person whom you would have chosen yourself.
You can also appoint a healthcare power of attorney, who can make healthcare decisions for you. It is often wise to designate one person to make medical decisions, while the other handles financial affairs… But this is up to you. You can choose one person to fill both of these roles, if you prefer.
As you continue to plan your retirement, please stay in touch with us. We can help with all issues that impact your financial health, and help you anticipate these decisions well in advance.