Most people go through three major phases with finances in their life. The first financial phase is build and grow when you’re first starting your career and are focused on maximizing contributions to your 401(k). This can be a good time to accumulate as much as you can taking into account all the different financial concerns that can pop up in future retirement, like the cost of long-term care.
The second financial phase is transition, which involves answering important questions about how you want to live your life after you exit full time employment. The third financial phase is most important for those people who are nearing retirement and are contemplating what the rest of their years will look like. Knowing where you’re going to pull assets from in this distribute-and-deploy phase is crucial.
There are tax consequences to consider and important estate planning strategies that must be evaluated too. If you have extra assets because you have worked significantly over the other financial phases of your life, you may also wish to leave a legacy by giving to others and supporting foundations and charities.
As long as you have a good plan, it is possible to accomplish many of your most important financial goals, but you should always engage the services of experienced and knowledgeable estate planning lawyers to help you get to that point in your life. There are so many different things to consider and all of them should be aligned with your personal goals and intentions. Having an experienced professional to guide you through this process greatly increases your chances of success and can give you tremendous peace of mind.
A New Hampshire estate planning lawyer can help you with your financial planning when you approach this process.