In Penton’s Wealth Management’s July e-newsletter, John Goralka discusses the obstacles that come with a long lifespan in his article “Estate Planning for an Aging Population.” As Americans are living longer, it’s essential to financially prepare for retirement. Individuals who fail to plan accordingly may risk experiencing financial strain toward the end of their lives.
Reports show that individuals are more concerned about running out of money than dying. In order to be better equipped for the future, Goralka recommends that individuals consider a retirement trust. Retirement trusts “allow children to disclaim all or a portion of the inherited retirement account benefits for their own children,” he said. Goralka also addresses the fear of running out of money, using gift provisions to reduce estate tax, and establishing or changing residency to ensure adequate savings.