![]() ![]() If you have a health savings account (HSA), consider maxing it out as well, as health care costs are likely to account for a significant portion of your ongoing expenses in retirement (see No. Ideally, that means contributing the maximum amount to your 401(k) or other workplace plan each year, plus so-called catch-up contributions once you reach age 50. "Living expenses like heat and housing aren't necessarily less just because there's only one of you," Rob says, "which makes a robust savings plan all the more important." Only 56% of unmarried workers were confident about a comfortable retirement in a survey conducted last year by the Employee Benefit Research Institute-compared with 82% of married workers-perhaps because two really can live as cheaply as one. "At some point, the risk of outliving your savings because you've invested too conservatively may become greater than the risk of suffering short-term losses in a down market," Rob says. For example, if you're in excellent health and likely to live for several decades, you might consider a larger allocation to stocks than to fixed income. While savings and investments are core parts of any retirement plan, Rob urges single retirees to consider other aspects of life in retirement besides sources of income-including health care needs and a community that can help counter the social isolation common among elderly singles.Īs you build and stress-test your retirement plan, factor in your potential longevity. "Regardless of the reason for being single, now is the time to figure out what you want for this next stage of your life." "Planning is important after any major life event, but especially if it affects your livelihood," Rob says. But those who are newly single will need to revisit their assumptions and savings targets with their new situation in mind. If you've been on your own for a while, your plan may already account for a solo retirement. Wealth and Investment Management Solutions.Meet the experts behind Schwab's investing insights.Environmental, Social and Governance (ESG) Investing.Bond Funds, Bond ETFs, and Preferred Securities.ADRs, Foreign Ordinaries & Canadian Stocks.Environmental, Social and Governance (ESG) ETFs.Environmental, Social and Governance (ESG) Mutual Funds.Benefits and Considerations of Mutual Funds.In addition, some states levy their own estate or inheritance taxes. Federal taxes on gifts and estates can be among the highest assessed on any financial transaction. Estate, inheritance, and gift taxesĪ big part of maximizing what you leave behind is minimizing taxes. You'll want to be thoroughly informed on what actions you can take or plan now to make sure as little as possible is lost to taxes, court fees, and other expenses. The best options may vary by the asset type, asset size, your age, or many other factors. It's important to get legal or tax advice and think through how each asset will pass to your beneficiaries, as well as your estate as a whole. This will be a key theme throughout your estate planning efforts. They will also help you communicate your wishes clearly, avoid mistakes, minimize taxes, and adjust your plans as time goes by or your circumstances change.Īn attorney or tax advisor can be well worth the cost-significant savings can result from thorough, informed planning. You'll make the decisions, but your attorney and tax advisor can help you think through and understand the sometimes complex implications of each option. The tax advisor can help you with any associated tax issues. These may include a will, health care proxy, and durable power of attorney. The attorney's role will include guiding you through the creation of fundamental estate planning documents. It's important to work with an attorney and possibly a tax advisor on your estate plan. Before you begin to take action on your estate plan, it's important to understand the key topics that may arise as you address your specific needs. ![]()
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