"Estate planning is intertwined with the financial plan," a newsmax.com article explained, and it’s no secret that many individuals fail to prepare for retirement. When doing an estate plan, the article offers some sound advice:
- Make sure an estate planning attorney examines every major financial document;
- Sign a healthcare proxy, living will and power of attorney; and
- Discuss all estate issues with your family, even if it’s uncomfortable
Those that do plan on their own make some major mistakes, and here are two:
- Skimping on savings. The article cites a recent retirement survey in which about 50% of the near-retirees who were asked what they could have done to better prepare for retirement said they should have saved more. The more and earlier you start saving, the more your money can grow.
- Overpaying for investments. The more you pay in investment fees, the less you have to benefit from compounding.
"The costliest errors are ones we make ourselves, often without realizing how much damage we're doing," the author notes.
Reference: newsmax.com (April 10, 2015) “USA Today: Don't Neglect Estate Plan as Part of Retirement Strategy”