Mistakes Every Boomer Should Avoid

When planning for retirement, baby boomers should consider two scenarios: what happens to their estate when they die, and what might happen to the estate should they live but aren’t able to live on their own.

(Photo credit: Wikipedia)
(Photo credit: Wikipedia)

An article on foxbusiness.com offers some questions and answers for boomers trying to figure this out.

1) How do I avoid some common long-term care mistakes?

  • Don’t tie up your money in long-term investments.
  • If you buy long-term care insurance, make sure the benefits are adequate.
  • Have proper advance directives in place, such as power of attorney and health care proxies.
  • Be careful of reverse mortgages.
  • Take advantage of penalty-free transfers of assets when applying for government benefits.
  • Don’t stay in investments too long just because you don’t want to pay capital gains taxes.

2) How do I avoid common estate planning mistakes?

  • Make sure to plan for liabilities and expenses that can be foreseen, such as long-term care.
  • Always update beneficiary designations on bank accounts and insurance policies.
  • Take steps to avoid conflicts among heirs. A trust or will that makes your intentions clear is helpful.
  • Don’t try to make your will by downloading software online.
  • Don’t transfer real estate while alive unless done through trusts or you could pay high capital gains taxes.

If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.

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