What Is Needed Besides Money When Preparing for Retirement?

What Is Needed Besides Money When Preparing for Retirement?- At this stage of your life, it’s crucial to have an estate plan in place to protect you if you become disabled and are unable to communicate, advises a recent article from AARP, “8 Financial Moves to Make in Your 50s.” While you may work for another ten or twenty years, the decisions made in the decades leading to retirement could make the difference between a stressful period and one where you can really relax. Here’s what you’ll want to address sooner rather than later.

Consult with an experienced estate planning attorney to be sure you have a financial power of attorney to give an individual the right to manage your money in case of incapacity. You’ll also want a power of attorney for healthcare, which is usually a separate document. Be cautious of online templates, as they may not be valid in your state and are unlikely to address your specific situation. Without either of these documents, your family won’t be able to make health care decisions for you and will have to go to court to get authority for both health care and financial decisions.

You’ll also need a will to distribute property after you pass, name an executor to administer your estate and if you have minor children, and some people in their 50s do, name a guardian to raise your children in case both parents die.

What Is Needed Besides Money When Preparing for Retirement?

Planning for long-term care is something most people don’t think about until they are faced with a health crisis. Even if you’re running marathons now, there’s a good chance you’ll need some form of long-term care sometime in the future. Even a few months in a long-term care facility can decimate a nest egg. If you can afford long-term care insurance, consider purchasing it while you are healthy and relatively young. Once you reach 60 and if you have any chronic health conditions, you may be denied coverage. Even if you can get a policy after 60, the premiums will be expensive.

Think about where you might like to live in retirement. Aging in place may require a step-free entryway, bedrooms and bathrooms on the first floor, or the installation of grab bars in bathtubs. Are hallways wide enough to accommodate a wheelchair or walker? If your retirement plan includes relocating to another state, be sure to update your estate planning documents as soon as you move. Estate planning documents are state-specific, and even minor details can render them invalid in a different state.

Taxes often come as a surprise to many retirees. If you’ve saved a lot in a traditional 401(k) or an IRA, your withdrawals are taxed as ordinary income. Once you turn 73, you must take distributions—Required Minimum Distributions—every year or face steep penalties. The distributions could bump you into a higher tax bracket, so you may want to divert part of your contributions to a Roth IRA or 401(k) if possible. You’ll pay taxes on contributions. However, withdrawals will be tax-free.

Get serious about estate planning. Talk with an estate planning attorney to protect yourself in case of incapacity, a financial advisor about your current and future financial status and get serious about saving. Life hands surprises around every corner, and an unexpected illness, unemployment, or divorce can easily sidetrack the best plans. Now is the time to get ready. Your future self will thank you!

Schedule your phone consultation: THE LAW OFFICES OF CLAUDE S. SMITH, III

What Is Needed Besides Money When Preparing for Retirement?

Reference: AARP (Sep. 18, 2025) “8 Financial Moves to Make in Your 50s”