Last Week’s Question of the Week: At what age do Medicare Benefits begin for Americans? ANSWER: Medicare is a medical insurance program for people 65 and older.
HOST: This week you are discussing what Financial Planning really covers for those who are looking at their retirement?
KLAAS FINANCIAL: Yes, so while we are always trying to focus on the “how to” “ retire better” on our show, we want to take a look at what financial planning actually encompasses.
- A financial planner should act like the quarterback of a football team.
- Financial planning covers all areas of a person’s financial life including but not limited to…
- Estate Planning – Wills and Trusts
- Taxes
- Insurance – Life/LTC/Health/P&C
- Investments
- It really involves being able to sit down and discuss with someone qualified, issues like we have been discussing today.
HOST: What about the need for Power of Attorney Documents?
KLAAS FINANCIAL: Yes! POA documents for health and property are important. Remember, the difference between being a beneficiary (this only comes into effect at the death of someone) and having POA (which comes into effect while the person is still living, typically incapacitated.) Which is more likely, incapacitation or early death?
HOST: Can our listeners do this on their own, or should they seek an attorney?
KLAAS FINANCIAL: We would normally prefer an attorney to make sure things are done properly. Yes, you can do it on your own but we would want you to take very special care that everything is signed and accurate. Lawyers and financial advisors recommend people write wills to ensure their wishes for transferring their property and assets are followed and to avoid protracted legal proceedings over the distribution of those assets.
According to a recent Harris Poll, 64 percent of Americans have not made a will.
The top reasons cited:
- “haven’t gotten around to it yet, “
- “fear it will be difficult and expensive,”
- “I don’t want to think about death.”
So, the real question is where do you fall?
FACT: the death rate is a 100%. Everyone will die, so getting these items in order sooner than later, and during your retirement planning can make sense.
HOST: Isn’t life insurance part of estate planning too?
KLAAS FINANCIAL: Yes, utilizing existing life insurance may be part of the entire estate plan for potential taxes or for beneficiaries. Again, these are important items that all of our listeners should make sure they have in place. Once you have your ducks in a row for retirement planning, making sure you have the proper estate planning documents in hand is very important.
Catch C.J. Klaas and Maleeah Cuevas on Money in Motion every Thursday on Madison's 1310 WIBA from 8:05-8:35am.
