Let’s talk about the future for a moment. No, not the upcoming mid-term elections, worthwhile stock investments, or who will win next year’s Super Bowl. Let’s talk about your future and some of the things you need to consider as you move into retirement and the latter stages of your life.
Did you know we’re living longer these days? As Americans, our average life expectancy has blossomed into the high 70s or low 80s (depending on which study you read). Experts predict by 2050, one-fifth of the U.S. population will be 65 years or older. That’s double the numbers for 1950 and 2000 (8 percent and 12 percent, respectively).
So many people living longer also means more medical costs and more dependency on retirement investments and savings to sustain their lifestyles. In some cases, Americans are working further into their “retirement years” to meet new financial challenges. Unless we’re all willing to move in with our children or grandchildren, we need to consider how to stretch the money we have and comfortably live out those golden years.
Rising medical costs
According to PwC’s Health Research Institute, medical expenses will rise 6.5% in 2018 as compared to the previous year. This is a slight uptick of cost growth that has slowly lessened over the past decade. But the problem is health spending continues to outpace basic inflation and economic growth, so the “new normal” we’ve adjusted to is not sustainable. Instead, we will need to vigilant in exploring all our healthcare options, compare prices, and do more work on our end to make sure we can manage the cost. As you consider your estate plan, you may need to include resources for an unexpected disability or a major medical issue for you and your spouse.
How much do you have tucked away in your savings account right now? If it’s less than $500, you aren’t alone. Recent studies have shown that 6 out of 10 Americans don’t have enough saved up to handle a $500 emergency and its created a financial stress on many communities. With an ever-changing economy, it’s hard for most Americans to manage this aspect of their finances – and especially once they enter retirement and are living on a fixed income. Better to consider all your options now or in the early stages of adulthood to protect yourself against the unexpected. Setting up a trust or financial management tool can ensure your spending stays on track.
While use of traditional savings accounts may have fallen from 67 percent to 34 percent since 1978, use of retirement funds has increased. In the past 40 years, contributions to IRAs and 401(k) plans has jumped from 20 percent to 58 percent. Of course, a fluctuating stock market directly impacts most retirement accounts, but even low-risk investments are better than none. An aging U.S. population will rely on those retirement funds more and more.
How does this impact your estate plan? Aside from draining your estate before there’s a chance to pass it down to the next generation, most Americans need to consider all their options and how best to set up their will to accommodate their lifestyle. At Parvin Law Group, our team regularly engages with clients who need a solid estate plan, asset protection, or an established trust. We take the time to explore all your options and will work with your certified public accountant or wealth manager to find the right solution for your needs. We’re also willing to dust off the crystal ball and play a game of “What If?” to make sure you and your family are prepared for the future.
Ready to set up a FREE consultation? Give us a call at (214) 974-8940 or fill out that Contact Us form on the right-hand side of this webpage. We’ll discuss Texas estate laws, how our process works, and answer any questions you might have. Let our highly skilled team work for you!
ATTORNEY CHRIS PARVIN is Board Certified in Estate Planning & Probate Law by the Texas Board of Legal Specialization. Mr. Parvin is the Managing Partner of the Dallas, Texas law firm of Parvin Law Group, P.C. and serves as an Adjunct Professor of Law at Texas A&M University School of Law. Mr. Parvin can be reached by email at firstname.lastname@example.org.
Parvin Law Group, P.C. is a Concierge Law Firm in Dallas, Texas with attorneys practicing law in the fields of Estate Planning, Probate, and Business Law.