I teach Estate Planning and Administration from an attorney/paralegal perspective at Shepherd Univerity to a classroom comprised mostly of seniors. That is senior, young and getting ready graduate and start their journey to retirement and asset protection. I think they are finally starting to get it as I take every opportunity to make the concepts applicable to them as well as their families. I had a representative from Hospice of the Eastern Panhandle in Martinsburg, WV, emphasize, in the absense of assets, that living wills and advanced directives are useful, even for “invincible” young adults. It’s one of the easiest, and free things that they can do for themselves.
I ran across this article from Wealth Junkie$. Though brief, I thought it was appropo. The following is the rest of the article:
Estate Planning: It’s For Young People, Too
“Estate planning sounds like something that should only concern senior citizens. After all, it’s a system of making sure that your assets wind up in the hands of your beneficiaries as quickly and easily as possible. And who has an estate these days? The word implies plenty of wealth.
But the fact of the matter is that estate planning is just as important to the young and the less-than-wealthy as anyone else. For one thing, estate planning these days can include the documents that state how you want your medical and financial affairs handled if you’re incapacitated. For another thing, estate planning is just as useful as an insurance policy: it gives you a way to make sure that your family is taken care of in a worst case scenario.”
Tags: advanced directive, asset protection, attorney /paralegal, Estate Planning, financial, incapacitated, insurance policy, living will, martinsburg, Martinsburg West Virginia, medical, premier guaranty, senior citizen, Shepherd university, United States, west virginia, West Virginia United States
(NewsUSA) – New data from Fidelity Investments found that more than eight out of 10 Americans have cut back on discretionary purchases because of the recent economic crisis, and nearly half of respondents are now saving money. But many are unsure where to place the savings for the greatest benefit.
“After maximizing workplace savings plans and paying off credit card debt, investors should consider saving more for retirement using an Individual Retirement Account or IRA,” said John Ragnoni, senior vice president, Fidelity Investments. “Even though Americans are facing a challenging economic environment, it’s important to prepare for the future by making annual contributions.”
For example, an investor who makes a single contribution of $5,000 to a Roth IRA now could see that amount potentially grow to more than $53,000 in 35 years, assuming an annual rate of return of 7 percent.
Additionally, consolidating old workplace savings accounts at former employers into an IRA may offer the most compelling benefits for managing one’s retirement savings, including a broader range of investment choices.
- Tax Free Growth in a Roth IRA
This hypothetical example assumes the following: (1) one annual $5,000 Roth IRA contribution made on January 1 of the first year, and (2) an annual rate of return of 7 percent, and (3) no taxes on any earnings within the IRA. The ending values do not reflect taxes, fees or inflation. If they did, amounts would be lower. Earnings and pretax (deductible) contributions from a Traditional IRA are subject to taxes when withdrawn. Earnings distributed from Roth IRAs are income tax-free, provided certain requirements are met. IRA distributions before age 59 1/2 may also be subject to a 10 percent penalty. Systematic investing does not ensure a profit and does not protect against loss in a declining market.
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