Retirement Planning



1. Wills and estate planning should be included in the retirement planning process.

True
Planning for retirement without a will and preparation for an estate allows the courts to step in and distribute property according to state laws. Proper management ensures that what is owned by the individual will be distributed properly among family members or beneficiaries. Wills are especially important for those with children because it gives individuals the opportunity to designate a guardian for any children rather than allowing the courts to decide who will take care of those left behind.


2. It is wise to seek a financial expert on retirement planning.

True
Professionals can inform and guide an individual on financial issues, including the decision of how much money to put into a 401(k) program or IRA and working out a savings and investment plan. It is a good idea to talk to an attorney, tax advisor, accountant, or other financial representative to discuss all available options. Financial experts can be found online, locally, and nationwide.


3. Health care should not be a concern in retirement planning because of Medicare and Medicaid.

False
It is important to remember in preparations for retirement that Medicare only pays about half of a retiree's health care costs. Medicare is health insurance, not long-term care insurance and people must finance their long-term care out of savings. Medicaid only covers these expenses after the person becomes impoverished.


4. Tax savings can be maximized with careful retirement planning.

True
A tax advisor can be helpful in tax planning and maximizing tax savings now and during the latter part of life. Tax advisors can assist in knowing which investments to take money from first in order to maximize tax savings. Most people need a tax advisor to do assist with financial management for the future.


5. Jesus provided retirement for his mother before He died.

True
John 19: 26-27 - When Jesus therefore saw his mother, and the disciple standing by, whom he loved, he saith unto his mother, Woman, behold thy son! Then saith he to the disciple, Behold thy mother! And from that hour that disciple took her unto his own home.


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