Not only is estate planning a way to protect your assets for your heirs, it is also about financial management for yourself while you are alive. While it is important to save for the future and to be able to pass some along to your heirs, you still need money to pay for day-to-day expenses, things you want to buy, and emergencies — especially in retirement.
While social security is available to most retirees, depending on their lifetime earnings, birthday and resident status, it may not be enough to maintain your lifestyle. You will most likely need the additional income available from savings. The same may be true for many who receive a pension.
There are a number of ways to save for retirement that you will use to provide income after you have retired. Annuities and retirement accounts are the two best ways to do this. However, a lot of financial experts suggest you keep enough in savings or other readily available sources of cash to handle emergency situations. However, it can be difficult to know how much that is.
Updated: February 20, 2024