It is never too early to begin retirement planning. Whether you go to work right out of high school or enter the workforce after college or graduate school it is wise to begin thinking about your financial future. In 2021 with members of the gay and LGBTQIA communities having almost identical rights as the hetero community you would do well to discuss your financial plan with an experienced Pennsylvania LGBTQ attorney handling retirement planning, estate planning and business law cases. While everyone’s financial and retirement plan is different there are several very basic aspects that our gay attorneys handle such as wills, trusts, guardianships, conservatorships, powers of attorney (POA), medical directives and HIPAA authorization. In addition, financial planning is something our gay friendly law firm helps with too. This can include life insurance, health insurance, mortgages, reverse mortgages, investments such as IRA’s, 401k’s, stocks, bonds, savings and cryptocurrency accounts. For those who are self employed or own a business of any size our attorneys also handle business entity cases, business formation, business litigation and business succession planning. Please click here to begin your free consultation with our skilled gay rights attorneys serving Pennsylvania and New Jersey.
Legal Documents For Retirement Planning
While prepping for retirement, it makes sense to have our Pennsylvania LGBTQ elder law attorneys periodically review your existing estate plan to make sure they are still in line with your goals. If you have not yet executed estate planning documents such as a Durable Power of Attorney, Health Care Proxy, Living Will, HIPAA Authorization and Last Will and Testament, now is the time to do so.
You may be looking to retire elsewhere or move somewhere warmer for the colder winter months. Arizona and Florida are 2 common states where retirees spend their winters. Depending on your situation, it may be beneficial for you to execute legal planning documents.
Our New Jersey gay elder law attorneys can ensure your goals will be met regardless if you are here in Pennsylvania, New Jersey or elsewhere.
Social Security & Retirement Planning
In Pennsylvania retirees can derive a portion of their income from Social Security depending on the amount of money they paid into the system while they were working. Widows may be entitled to their spouse’s social security check. The Commonwealth of Pennsylvania does not tax social security income like some states, including West Virginia, Connecticut and Rhode Island. A knowledgeable Pennsylvania estate planning attorney can assist in determining the optimal age to begin receiving social security retirement benefits. They also assist those who want to elect to receive benefits under their spouse.
Cash Flow Analysis In A Retirement Plan
Many of our clients are concerned about making their assets last for their lifetime. A cash flow analysis can be beneficial to get a better picture of cash inflows and outflows.
This cash flow analysis can assist to look at your reoccurring expenses during the year to determine if you will need to decide on a budget. It can also help to determine if you need to find less expensive options for reoccurring yearly purchases. A cash flow analysis can also help you to assess whether the long-awaited family dream vacation is within reach.
Tax Issues & Retirement Plans
Concerns and issues related to taxes tend to become much more important the closer you get to retirement and remain important once you are retired. Proper tax planning can help to analyze the source of funds you will use to maintain your lifestyle and any tax repercussions involved. It is crucial that our LGBTQIA estate planning lawyers analyze your accounts to assess the different tax consequences of each when funds are withdrawn. What are deemed non-qualified accounts are taxed at capital gains levels while qualified accounts are taxed at ordinary income levels. Let our NJ LGBT attorneys help protect you and your retirement.
Life Insurance & Retirement
A very basic retirement instrument, and even prior to retirement, is life insurance. Typically the older one is the more expensive life insurance is. With that in mind in is imperative that you know the different types of life insurance such as term or whole coverage. It also behooves you to determine the amount of coverage that would be appropriate for your specific situation. Some policies only need to cover basic burial and funeral services while other may need to provide your loved ones with hundreds of thousands, or millions, of dollars once you pass away. By having a proper life insurance policy sooner rather than later, you can protect your income in retirement, provide tax-free cash flow, help to manage taxes and provide peace of mind to your loved ones. Sometimes, when a parent or spouse passes away, the surviving child, children or spouse may struggle financially. A sound life insurance policy can help to supplement the lost retirement income of a parent or spouse.
IRA Strategies & Retirement Planning
An IRA is an individual retirement account and is a very basic, and common, estate planning tool. There are variations for those who are self employed as well as those who work for someone else. During the course of your career you worked hard to have a nest egg through an IRA so it makes sense to protect it. One vehicle often used is a trust. By establishing a trust, you give the beneficiaries of your retirement account protections that are otherwise not available to them. While inherited IRA accounts are not protected from a beneficiary’s creditors or in bankruptcy, IRA’s that are directed to trust are protected from creditors such as a divorcing spouse or a lawsuit that may be brought against yourself or any named beneficiaries.
Trusts In A Retirement Plan
In addition to the benefits of a trust for your IRA trusts can also ensure that assets will be available for future generations. There are different types of trusts in PA & NJ such as traditional trusts, special needs trusts, revocable trusts, irrevocable trusts, marriage trusts bypass or credit shelter trusts and charitable trusts. Upon your passing, a retirement account beneficiary can either receive distributions over her lifetime or remove all retirement account assets immediately. There are tax issues with the latter as income tax then becomes due immediately. And they potentially have a high tax rate. With a trust, the trustee ensures that the inherited IRA would continue to be managed and stretched over the beneficiary’s lifetime. With so many options, all of which carry financial penalties if handled incorrectly, it makes sense to have our gay Pennsylvania trust attorneys help you with your entire estate and retirement plan.
Contact Our Gay Friendly Retirement Planning Attorneys
To ensure your goals for retirement are met, contact our Pennsylvania and New Jersey LGBTQ retirement planning attorney who can discuss these strategies outlined above and recommend knowledgeable resources to design a well-rounded plan specific to your needs. If you have questions or concerns about LGBTQ Estate Planning issues in Pennsylvania or New Jersey please don’t hesitate to contact the Philadelphia LGBTQ Rights Lawyers at Giampolo Law. They provide free consults for all estate planning, retirement planning and all other areas of law involving the LGBTQIA community.
The gay friendly attorneys at Giampolo Law help you and your loved ones handle Estate Planning, Elder Law, Special Needs Planning, Medicaid Planning, Trust & Estate, Guardianship, Business Succession Planning, and Real Estate Law. Please click here to connect with our gay Philadelphia attorneys.