Preparing to Leave a Legacy for Your Loved Ones
When preparing your legacy and estate planning process, your main concern is to provide your beneficiaries with the most resources possible, while also lessening the tax burden for all involved parties. This involves preparing your loved ones for their future. We’ve created a comprehensive guide to help you navigate conversations with loved ones at every age from middle school and beyond.
Ages 9-13
Middle School Age
It’s never too soon to teach your kids about the value of money.
Ages 14-17
High School Age
It’s important that they understand the cost and value of going to college, and plan to make the most of it.
Ages 18-22
College Age
College is the first time they’re on their own, and they will need to learn how to budget.
Ages 23-29
Post Grad
Once they start their first job, they should learn how to make a budget and continue or start saving for retirement.
Ages 30-39
Late 20s – Late 30s
You may discuss their strategy for buying a house, saving for their own retirement, paying off the rest of their student loans, and their investment strategy.
Ages 40-55
Mid 40s – Mid 50s
This is the time to continue discussions about wealth transfer and tax minimization strategies with them, as well as how you would like to be cared for in your old age.
DRIVE
16
License holders who are 16 years old may not drive with more than one non-family passenger unless accompanied by a parent, guardian or legal custodian.
VOTE
18
Individuals have the right to actively participate in the political decision-making process by choosing between competing people or ideas without fear or reprisal.
Big 5-0!
50
Workers in certain qualified retirement plans are able to begin making annual catch-up contributions in addition to their normal contributions.
Alive At 55!
55
Age 55 – If you separate from service in or after the year you turn age 55 and have a qualified plan at the job you left you may be able to take distributions from the Retirement Plan penalty free. Be warned the strategy does not work if you move money to an IRA.
And 1/2
59½
Workers are able to start making withdrawals from qualified retirement plans without incurring a 10% federal income-tax penalty.
Get Our Guide - Why 59.5 Is An Important Age.
SSA!
62
Workers are first able to draw Social Security retirement benefits. However, if a person continues to work, those benefits will be reduced. The Social Security Administration will deduct $1 in benefits for each $2 an individual earns above an annual limit.
Get Our Guide on Social Security.
HEALTH
65
Individuals can qualify for Medicare. The Social Security Administration recommends applying three months before reaching age 65.
Get Our Guide on Social Security.
100%
65 to 67
Individuals become eligible to receive 100% of their Social Security benefit. The age varies, depending on birth year.
Get Our Guide on Social Security.
Ages 9-13
Middle School Age
It’s never too soon to teach your kids about the value of money.
Ages 14-17
High School Age
It’s important that they understand the cost and value of going to college, and plan to make the most of it.
Ages 18-22
College Age
College is the first time they’re on their own, and they will need to learn how to budget.
Ages 23-29
Post Grad
Once they start their first job, they should learn how to make a budget and continue or start saving for retirement.
Ages 30-39
Late 20s – Late 30s
You may discuss their strategy for buying a house, saving for their own retirement, paying off the rest of their student loans, and their investment strategy.
Ages 40-55
Mid 40s – Mid 50s
This is the time to continue discussions about wealth transfer and tax minimization strategies with them, as well as how you would like to be cared for in your old age.
Max Age
70
When you turn 70, you become eligible to receive your maximum Social Security benefit. Your benefits won't increase for any years after age 70, so make sure to claim by this age!
Get Our Guide on RMDs.
RMD's
73
Participants must begin taking required minimum distributions (RMDs) from traditional IRAs and qualified retirement plans, such as 401(k), 403(b), and 457 plans. RMDs are based on your account balance and life expectancy.
Get Our Guide on RMDs.
5 Things to Help You Get Started on Legacy and Estate Planning
Do you have a plan for what will happen to your assets when you pass away? This may be something that you should be working into your overall financial plan. Without a specific estate plan and legacy plan, you won’t know what is going to happen to your money after you are gone. 1. Think about the good you can do. It’s ...