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Understanding Social Security for Retirement Planning

If you were born in 1929 or later and worked for at least 10 years, you are entitled to Social Security benefits in New York. Social Security benefit payments can begin at age 62. However, if you decide to wait until your full retirement age, your benefit will be larger.

To sign up for Social Security, you can apply online to the Social Security Administration (SSA) three months before you wish to receive your first payment.

A knowledgeable New York estate planning attorney can assist in determining the optimal age to begin receiving social security retirement benefits or electing to receive benefits under your spouse.

Legal Planning Documents for Your Retirement

While getting your ducks in a row for retirement, you should also review your current estate planning documents to make sure they still comply with your wishes. If you haven’t yet executed estate planning documents, such as a Durable Power of Attorney, Health Care Proxy, Living Will, HIPAA Authorization, Last Will and Testament, and Revocable Living Trust, now is the time.

You may be looking to retire elsewhere or move to warmer climates like Florida in the colder winter months. Depending on your situation, executing Florida legal planning documents may benefit you.

At Russo Law Group, P.C., we have attorneys licensed in Florida, Massachusetts, and New Jersey.

Our New York elder law attorneys have jurisdiction in each state and can ensure you meet your goals in New York, Florida, or elsewhere. If you move to another State, we can also coordinate with an attorney in your area so your estate plan is updated under the other state’s laws.

Cash Flow Analysis in New York and Florida

Many of our clients are concerned about making their assets last for their lifetimes. A cash flow analysis can be beneficial to get a better financial picture.

This cash flow analysis looks at your reoccurring expenses during the year to determine the need for a budget or find less expensive options for reoccurring yearly purchases. A cash flow analysis can also help you assess whether the long-awaited family dream vacation is within reach. We can coordinate with your financial advisor so that your estate plan aligns with your financial plan.

Taxes for Retirement Planning in New York

Often, tax planning takes on greater importance during retirement. Tax planning can help analyze the financial resources used to maintain your lifestyle and any tax repercussions.

It’s important to analyze your accounts to assess the different tax consequences when withdrawing funds. For example, nonqualified accounts are taxed at capital gains levels, while qualified accounts are taxed at ordinary income levels.

Life Insurance for Retirement Planning in New York

You should discuss the types of life insurance, and coverage amounts, with a qualified life insurance agent to determine what would be appropriate for your situation. There are many different types of insurance policies available for your consideration. By doing so, you can protect your income in retirement, provide tax-free cash flow, manage taxes, and provide peace of mind for your family. We can also analyze your existing life insurance policies in the context of your overall estate plan.

One of the greatest benefits of life insurance is the peace of mind it can provide. Often, when one spouse passes away, the surviving spouse struggles to meet their income needs. New York life insurance can help supplement the lost retirement income of a spouse.

IRA Strategies for New York Retirement Planning

You’ve worked hard to build up your retirement savings through an IRA. Shouldn’t you protect it? A trust is one way to protect assets. By placing your IRA in a trust, you give the beneficiaries of your retirement account protections otherwise unavailable to them. While inherited IRA accounts are not protected from a beneficiary’s creditors or in bankruptcy, IRAs directed to a trust are protected from creditors, such as a divorcing spouse or a lawsuit brought against you or any named beneficiaries.

A trust can also ensure that assets will be available for future generations. Upon your passing, a retirement account beneficiary can either receive distributions over a period of years (depending on who the beneficiary is) while distributing additional retirement account assets as needed. One must consider the income tax consequences of receiving retirement assets sooner than required. You may be in a higher tax bracket as well. With a trust, the trustee ensures that the inherited IRA continues to be managed and stretched over a longer period of time.

To ensure your goals for retirement are met, contact a knowledgeable retirement planning attorney who can discuss these strategies outlined above and recommend valuable resources to design a well-rounded plan specific to your needs.

Russo Law Group, P.C. helps you and your loved ones handle Estate Planning, Elder Law, Special Needs Planning, New York Medicaid Planning, Trust & Estate, Guardianship, Small Business Planning, and Real Estate law. We welcome you to contact our Garden City, Lido Beach, or Islandia, New York, law offices to learn more about how we can help address your retirement planning legal needs.

If you have questions or concerns about estate planning or retirement strategies in Long Island and New York City communities, please don’t hesitate to contact the New York elder law attorneys with Russo Law Group, P.C. While we have several office locations, we can also visit your home and offer virtual meetings for convenience.

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