Current Plan Review

Current Plan Review

The only constant in life is that it is constantly changing. Relationships start and end, kids grow up and move on, and loved ones pass by. Due to the evolving complexity of our lives it only makes sense to review your current estate plan with some frequency to ensure it represents the current position and wishes.

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When Should Your Current Plan Demand a Review?

The logical answer to this question is if you undergo a major shift in the circumstances of your life, such as a divorce or remarriage resulting in a blended family.

However, even though nothing has changed throughout your life and you still want your assets to go to the beneficiaries listed throughout your original estate plan, it will still be important to go through your documents.

When it comes to your current estate plan, amendments in-laws and rules will affect your strategy for your estate.

Changes to estate taxes are enforced with some regularity and your beneficiaries may face a more severe tax penalty than you had originally envisaged.

Privacy laws are another area of concern and may make it more difficult for your loved ones to learn about your medical status or make medical decisions on your behalf. Additionally, there is now a large part of our lives online, and it is vital to ensure that your loved ones have access to your passwords and digital accounts.

There is no clear and fast rule as to how often you will review your plan for the estate.

It is prudent to review and amend the estate plan when appropriate if there is a divorce, remarriage, or death within the family.

Who these days doesn't care about their retirement planning? It has been a whipsaw of a journey recently for 401(k), IRAs, and other retirement funds.

Bond and stock markets have been crazy because of the effect of coronavirus on the global economy.

Your current plan needs a review considering the present situation. Markets are fluctuating, and if you’re in your 50s or 60s, you still likely have years ahead of working and earning an income.

Reviewing Your Current Plan

1. Rebalance the retirement accounts

Financial advisors usually recommend rebalancing when your portfolio is more than 7 to 10 percent away from your original asset allocation that suits your risk tolerance and objectives.

2. Get estimates of your future pension benefits and social security benefits

Estimate your future social security benefits, and see a record on the SSA website of your lifetime earnings history. Reading your statement on social security can tell you how much you need to save for retirement, and help you begin to figure out when to start claiming benefits for social security.

3. Consider when, how, and whether you intend on retiring

Most of us tend to keep working for mental engagement as well as income past typical retirement age. You may be talking about retiring from a primary career and starting one encore or even starting a business. Go through your plans once a year. The extra earnings from working longer can ease financial anxiety about surviving your income. After all, the more years you'll have to make contributions in a retirement fund such as a 401(k) or an IRA, the better off you'll be down the road.

4. Develop, or review, a budget for retirement expenses and a plan for retirement income

Estimating your annual retirement costs and balancing what you intend to come in against money is worth writing out sooner rather than later.

5. Paying off debts

Ultimately, use the annual retirement account review to reduce or remove high-interest credit card payments, student loans, and vehicle loans where possible.

Debt can be a real retirement dream-killer. And the faster you get a grip on this, the more retirement you'll be able to enjoy.

Retirement planning at any age is relevant. The earlier you start investing your savings, the more likely you'll be ready when the time comes.

When you're ready, Infinity Financial Network will help move your retirement plan to the next level.

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Our mission is to help you achieve your goals by showing you ways of protecting what's important to you, investing in your future, and preparing for your retirement.

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