A study last year by SunAmerica Financial Group shows that the economic recession has had a profound effect on the mindset and expectations of those getting ready for retirement.  A majority of those surveyed said that they now view retirement as a new chapter in life rather than a way to wind down – yet more proof that baby boomers are remaking retirement in their own image, instead of their parents’.

Here is an infographic that breaks down the study results into four categories of mindsets among pre- and current retirees – note that those who have the most positive attitude about retirement are also those who say they have developed a plan for saving and investing for retirement:

For more information on planning for retirement, contact our Newport Beach estate planning and asset protection law firm.

Retirement is so much easier if you don’t have significant expenses to worry about on a regular basis.  Here are five things you should definitely try to pay off before you retire:

Mortgage:   Usually 30-40 percent of an average America’s monthly expense, paying off your mortgage before you retire will free up a lot of extra cash for doing what you really want to do.

Major home repairs:  Inventory your home and make a list of the repairs you’ll need to make over the next 15-20 years – a new roof?  A kitchen remodel?  A new air conditioner?  Plan for it in advance by setting money aside as part of your retirement planning.

Minor repairs:  If you’ve been living in the same house for decades, it may be time to consider an update – a fresh coat of paint, new window treatments or new floors will add value to your home if you decide to sell, and it’s easier to pay for it while you’re still working.

Cars:  In the current economy, most people are delaying purchasing a new car, which is a way to save in the short term.  However, if your current vehicle is on its last legs, you’ll either need to replace it before you retire or set funds aside in your retirement budget to cover the cost of a new one at some point.

Supporting the kids:  Many Baby Boomers will be reaching retirement age at the same time their children are going off to college.  Plus, many children who have graduated are flocking back to the nest.  If your children are not self-sufficient, you will need to take into consideration when they will be and how much you will be involved in getting them there.

For more information on planning for retirement, contact our California estate planning and asset protection law firm.

As a Newport Beach estate planning attorney, I see lots of people who are struggling with decisions about retirement.  That is why I am happy to share a new set of tools from the Society of Actuaries – a non-profit organization that focuses on the measurement and management of risk – that may help new or soon-to-be retirees navigate some of these difficult planning decisions.

The Society of Actuaries’ Committee on Post-Retirement Needs and Risks has just completed a two-year analysis of the decisions that affect retirement, and has issued 11 reports on the following topics:

Big Question: When Should I Retire?

When Retirement Comes Too Soon

Women Take the Wheel: Destination Retirement

Deciding When to Claim Social Security

Designing a Monthly Paycheck for Retirement

Treating Asset Allocation Like a Roadmap

Securing Health Insurance for the Retirement Journey

Taking the Long-term Care Journey

Where to Live in Retirement

Estate Planning: Preparing for the End of Life

Finding Trustworthy Financial Advice for Retirement and Avoiding Pitfalls

To download each one of these reports in PDF format, click here.

For help with retirement planning, contact our Newport Beach asset protection and estate planning law firm, a trusted source for estate planning, asset protection and retirement planning for more than 35 years.

One year ago, Baby Boomers started turning 65 and 10,000 of them reach that age every day.  Unfortunately, two-thirds have done little or no retirement planning, even though they will most likely spend at least two decades in retirement.

This infographic from CouponCabin.com details this trend and shares some retirement options for boomers who are getting ready to hit retirement age, ready or not:

For help with retirement planning, contact our Newport Beach asset protection and estate planning law firm.

When it comes to planning for retirement, many people feel out of control these days, due to the volatility of the job market, the stock market and the world economy.  A Consumer Reports column last week, however, reminds us of what we can control by detailing seven common ways people can wreck their retirement:

Having no plan.  At the very least, you need to have a guesstimate of how much money you will need to save for retirement, an annual plan on how you will save and/or invest to get there and exactly what kind of lifestyle you want to have when you retire.

Having no Plan B.  In today’s job market, we are no longer totally in control of when we retire – an employer may make that decision for us.  Having alternate plans that consider different scenarios is a must.

Not knowing what you have.  You need to take an inventory of all your savings and investments so you can establish a solid baseline for moving forward.

Underfunding retirement accounts.  Especially for those whose employers match contributions, you are leaving money on the table if you don’t contribute the maximum amounts to your tax-deferred plans.

Not taking a calculated risk.  Being overly cautious with investments once you retire means you will likely lose ground financially.

Forgetting fees.  Scrutinize the fees administrators are charging you for managing your 401(k) and other investments.  It should be easier this year, since new disclosure rules increase transparency.

Counting on home equity.  These days, it is advisable not to count home equity in your net worth unless you are certain of how much profit you can earn by selling your home.  Instead, view your home equity as insurance in case other retirement projections don’t work as planned.

Taking time now to plan for your financial future is probably one of the best investments you can make for you and your heirs.  Contact our California estate planning law firm to get started.

A list of key numbers that every retiree – or those who plan to retire soon – needs to know was published recently at ElderLawAnswers.com:

• Medicaid Spousal Impoverishment Figures for 2012
  • The new minimum community spouse resource allowance (CSRA) is $22,728, and the new maximum CSRA is $113,640. The new maximum monthly maintenance needs allowance is $2,841. The minimum monthly maintenance needs allowance remains $1,838.75 until July 1, 2012.
• Income cap
  • The income cap for 2012 applicable in “income cap” states will be $2,094 a month.
• Medicaid home equity limit
  • Minimum: $525,000; Maximum: $786,000
• Medicare Premiums, Deductibles and Copayments for 2012
  • Basic Part B premium: $99.90/month (was $96.40 for most beneficiaries)
  • Part B deductible: $140 (was $162)
  • Part A deductible: $1,156 (was $1,132)
  • Co-payment for hospital stay days 61-90: $289/day (was $283)
  • Co-payment for hospital stay days 91 and beyond: $578/day (was $566)
  • Skilled nursing facility co-payment, days 21-100: $144.50/day (was $141.50)
• Premiums for higher-income beneficiaries:
  • Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay a monthly premium of $139.90 (was $161.50).
  • Individuals with annual incomes between $107,000 and $160,000 and married couples with annual incomes between $214,000 and $320,000 will pay a monthly premium of $199.80 (was $230.70).
  • Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 in 2010 will pay a monthly premium of $259.70 (was $299.90).
  • Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more in 2010 will pay a monthly premium of $319.70 (was $369.10).
• Social Security Benefit Changes for 2012
  • Monthly federal Supplemental Security Income (SSI) payment standard will be $698 for an individual and $1,048 for a couple.
  • Average monthly Social Security retirement payment: $1,229 a month (was $1,186) for individuals and $1,994 (was $1,925) for couples
  • Maximum amount of earnings subject to Social Security taxation: $110,100 (was $106,800).

Our Orange County asset protection and estate planning law firm has been a trusted source for estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

Retiring overseas has become increasingly popular as Americans try to stretch their retirement dollars as far as possible while still enjoying an active lifestyle.  In fact, according to CNBC, over a half million American retirees are currently enjoying the expatriate lifestyle in countries all over the world.

However, before you decide on an expat existence, you should discuss your plans with a Newport Beach estate planning attorney so you understand all the financial implications of your decision, including:

Taxes – the IRS allows Americans living overseas to exclude up to $91,500 of income earned abroad by using the Foreign Earned Income Exclusion (FEIE).  However, to qualify, you must have lived outside the U.S. for no less than 330 days in a 12-month period.  If you do not qualify for FEIE, you will still need to file and pay U.S. income taxes.

IRA Contributions – generally, once you move out of the country, you will not be allowed to contribute to an IRA since to do so, you must be earning taxable income.  If you apply for and claim a FIFE, you would not have taxable income so would be precluded from making contributions to an IRA or, in fact, most retirement accounts.

Social Security Benefits – living overseas will not stop you from receiving your Social Security benefits, but depending on what country you choose, it could be a hassle.  The government cannot send funds to some countries; in others, it may take up to four weeks for your check to clear.  Most expats get around this by keeping a U.S. bank account and accessing their funds via an ATM card.

If you want to learn more about planning well to live well in retirement, contact our California estate planning law firm.

They call it the “boomer boomerang” – adult children of retiring baby boomers who continue to rely on their parents for their financial needs.  Unfortunately, continuing to support grown children can have a significant detrimental effect on boomers’ savings and retirement plans, according to a Wall Street Journal article yesterday.

To avoid having your adult children jeopardize your financial future, financial planners recommend the following:

No blank checks.  While you may be able to help your children out here and there, don’t make it a blank check.  Be sure you can pay your own bills before you cover theirs.

Establish limits.  Let your children know exactly how much you can comfortably provide, and set a time limit on when the support will stop.

No guilt.  Parents often feel guilty when they have to say no, but you must be honest with your adult children about how you are putting your own retirement at risk.

Reassess goals.  Reassess your own financial goals and develop a new financial plan to stick to them, even if that means cutting off the support at some time.

Make them accountable.  Make your children accountable for their finances; unless you do, they are liable to make the same mistakes over and over.

Of course, the best way to avoid having adult children depend upon you for financial help is to educate them when they’re young about the importance of saving and budgeting as well as self-reliance when it comes to paying their own way in life.

Our California asset protection and estate planning law firm has been a trusted source for estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

A Harris Interactive research poll of 501 small business owners has found that 75 percent of these employers believe that their employees are financially unprepared for retirement – yet only one in five of these employers currently offer employees any type of employee self-funded retirement plan like a 401(k).

The poll, conducted on behalf of Nationwide Financial, also found that more than a third of small business owners say they face pressure to offer their employees a retirement plan.  More than three-fourths agree that having a retirement plan for employees is helpful in attracting qualified job candidates.

Most of the small business owners surveyed said they did not offer a retirement plan because it was too expensive, or because they believe their business is too small.

Nationwide conducted the poll in support of new legislation introduced in Congress that would allow small business owners to pool together to offer Multiple Small Employer Plans (MSEPs).  The legislation, known as the Small Businesses Add Value for Employees (SAVE) Act (H.B. 4742) would enable small employers to pool resources under a single plan, which would cut costs and administrative requirements.

Our California asset protection and estate planning law firm has been a trusted source for retirement and estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

An Associated Press poll released today says that a majority of baby boomers plan to work through their retirement years as the result of having taken a financial hit in the past three years.

According to the poll, 73 percent of boomers said they plan to keep working in retirement, which is up from 67 percent in a March survey.

Approximately 53 percent of the boomers surveyed said they don’t feel they will be able to afford a comfortable retirement, which is up from 44 percent who expressed the same doubts just six months ago.

Overall, 62 percent of the boomers surveyed said they had lost money from at least one of the four most important components of their retirement savings plan:

• 42 percent lost money from a workplace retirement savings plan
• 41 percent lost money on personal investments
• 32 lost money on an IRA
• 29 percent lost money on real estate investments

The poll also found that 41 percent of boomers say they are expecting to have to make lifestyle changes to accommodate a new retirement reality, and 31 percent believe they will struggle financially in retirement.  Almost one-quarter (23 percent) said they will have to move to a smaller home when they retire.

Our California estate planning and asset protection law firm can assist you with your retirement planning; contact us today.