In America, we are trained from an early age to plan for our retirement. Many of us start to fund retirement accounts as soon as we start working. While planning for your retirement is undeniably important, over-funding your retirement account can create an estate planning nightmare. Excess funds that are left over from your retirement account when you die could be subject to income tax and estate taxes. As a result, the amount left over could be reduced to a small percentage of its original value. The good news is that with proper estate planning, you can both adequately plan for your retirement and protect any excess from being lost to income and/or estate taxes.

Although experts voice opinions on a regular basis regarding how much money we will all need in order to sustain our lifestyle after retirement, the reality is that there really is no way to know how much money we will actually use after we reach retirement age. You have no way of knowing how long you will live or what your health care costs will be throughout your golden years. As a result, most people plan for the worst and hope for the best. This frequently leads to a significant excess of retirement funds upon death. If you have done nothing to prepare for this contingency, those funds could be taxed as income and then taxed again as part of your estate, resulting in the loss of well over half of the funds left.

By taking advantage of the numerous estate planning tools that are available to you, you should be able to create an estate plan that continues to allow you control over the assets while you are alive, yet protects them from over-taxation in the event you have over-funded your retirement account.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Years ago, retirement planning was relatively simple. Most Henry county residents counted on children to take care of them in their old age, supplemented by a lucrative pension plan and/or Social Security retirement benefits. Those days are gone. Today, you are lucky if you can depend on one of those options to support you when you reach your golden years. In order to ensure a comfortable old age, retirement planning should start early and involve multiple sources of support.

Unfortunately, there is not one simple plan that works for everyone; however, there are a number of common tools that are often used as part of a retirement plan. If you are lucky enough to work for an employer that offers some type of retirement plan, a careful analysis of the benefits and drawbacks of the plan is a good place to start. Social Security retirement benefits may be available as they were in the past; however, the future of the Social Security system is uncertain and should not be counted on as a source of support.

Savings and investments have become a necessary part of most retirement plans in the 21^st century. How much you need to save and how to invest those savings will depend on how much income you need to live comfortably and how much you expect to receive from other sources.

The necessary complexity of a modern day retirement plan often leads to complicated tax and estate planning issues as well. Be sure to discuss the tax liabilities associated with your retirement plan as well as how to coordinate your retirement and estate plan with your estate planning attorney.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you look into the statistics you find that a remarkable percentage of Americans, even those who are getting up there in years, are completely unprepared for retirement. The baby boomer generation is comprised of people who were born between 1946 and 1964. These people are now reaching retirement age, and we are finding out that many of them have made little to no preparations for the future.

It is very important to understand the fact that Social Security payouts are rather modest, and Medicare does not pay for everything when it comes to health care expenses. In fact, many people in Fayette County are somewhat shocked when they hear that the average monthly Social Security benefit is right around $1070.

A recent poll conducted by the Associated Press along with LifeGoesStrong.com found that over 60% of the baby boomers they contacted said that Social Security would represent the cornerstone of their retirement income. The Social Security Administration itself tells us that one third of recipients say that Social Security comprises at least 90% of their total income.

It’s no secret that we are in the throes of a fiscal crisis here in the United States. Legislators are demanding budget cuts, but when you examine the pie chart you see that Social Security consumes 20% of the budget, and Medicare and Medicaid spending accounts for 23% of it. So these programs are under assault, making it even more risky to rely on them heavily.

The bottom line is that retirement is not an entitlement. It is a period of time during which you have the financial resources to quit working. If you can’t pay your way without earning a paycheck or profiting from a business, you may not be able to stop working.

The only way to be certain that you will be enjoying your golden years to the utmost is to plan ahead intelligently and pragmatically. This is best done with the guidance of an experienced Fayette County retirement planning attorney with a demonstrated history of success.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

We often times learn lessons in life through hard experience, and once you gain this experience you can avoid the mistakes that may have plagued you in the past. However, there are some long-term errors that can be made that you simply can’t make up for, and one of these is a lack of planning with regard to your retirement.

It is useful to look at the equation in a stripped-down manner. Retirement is not some sort of entitlement. You have to accumulate the financial resources to pay your way for perhaps 20 years or more without receiving a paycheck. For most people this doesn’t happen without careful advance planning.

There was a poll conducted recently that was designed to gain an understanding of the financial preparedness of baby boomers who are nearing retirement age. Some 24% of them had no retirement savings at all, and over 60% of them said that they expect Social Security to provide them with most of their retirement income.

Relying on Social Security alone is simply not going to be a good idea for most people because in 2010 the average monthly check was just $1072. In addition, because of the federal budget deficit austerity is the order of the day, and the future of Social Security is in doubt.

This is why it is important to take your 401(k) plan at work very seriously. A 401(k) is a retirement savings account that you contribute into with pre-tax earnings. Interest accrued is not taxed, and your taxable income is reduced by the amount of your contributions into the 401(k) on an annual basis. So for example, if you earned $70,000 in a given year and contributed $6000 into your 401(k), your taxable income would wind up being $64,000.

You can start to receive distributions from the 401(k) account when you reach the age of 59 1/2. This income is taxable, but if you were to contribute into a Roth 401(k) instead of a traditional one, your contributions would come after taxes but you would not have to pay income tax once you start receiving distributions.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

One of the reasons why a lot of people don’t take retirement planning as seriously as they should is because they are under the impression that Social Security will provide them with a very solid foundation of income. When you look into the matter however, the statistics tell a different tale.

The exact average is going to fluctuate constantly because of people passing away while others become eligible for Social Security, but according to the Associated Press right now the average monthly benefit is $1082. The possibility of cost-of-living adjustments exists, but no such increases have taken place over the last two years. Yet, over that same period of time out-of-pocket health care expenses for seniors rose by some 14%.

Recipients of Social Security got a bit of good news recently when it was announced that there will be a 3.6% cost-of-living adjustment in 2012. Although any increase is better than no increase at all, considering the fact that the average benefit is about $13,000 a year this 3.6% COLA will result in a $39 per month increase for someone receiving the average benefit.

Though Social Security is certainly going to help, when you look at these figures you can see that it is not going to be sufficient to provide you with the type of retirement that Atlanta residents have probably been looking forward to. In addition, Medicare does not pay for everything and out-of-pocket expenses may well rise as adjustments to the program are made in an effort to reduce the federal debt. And as stated above, out-of-pocket expenses have already been increasing.

How can you respond to the limitations of entitlement programs for seniors? Simply rely on them less, and this can be achieved through the implementation of an intelligently conceived retirement plan. To get started, pick up the phone and arrange for a consultation with an experienced Atlanta retirement planning attorney.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Atlanta retirement planning attorneys are always going to suggest that you get started planning for the future as soon as possible. This is not a dry platitude with no substance and it is something to take seriously. To boil it down to its essential ingredient, retirement is just a word that describes the decision to stop working. Most people work because they need the income. If you can’t afford to pay your way without earning a paycheck or operating a business, you can’t retire regardless of what age you are.

That is, unless you reach retirement age as defined by the Social Security Administration and feel as though you can get by on your Social Security benefit alone. As of this writing the average Social Security benefit is $1072, and while it is possible that you will qualify for more than the average a truly exciting and relaxing life of leisure and travel is not going to be facilitated by your Social Security benefit alone. But of course even if you are not completely reliant on Social Security, it is certainly going to help a lot.

Medicare is also very important once you stop working and are no longer involved in the healthcare plan that was offered to you by your employer. With this in mind, it is a good idea to keep an eye on the budget slashing that is going on in Washington.

Everyone agrees that spending needs to be decreased in some areas, and it is hard to address the issue without targeting Social Security and Medicare because spending on these programs comprises a large portion of the federal budget. A course of action that would be simple, if not well-received by many, would be to raise the age at which you can apply for Social Security and Medicare.

Right now full retirement age as it applies to Social Security is either 66 or 67 depending on when you were born. At the present time, all Americans are eligible for Medicare when they celebrate their 65th birthdays.

These are some facts to consider when you’re planning for your retirement. To devise an intelligent plan that leads to the realization of your vision of an ideal retirement that is not overly dependent on Social Security, get in touch with an experienced Atlanta retirement planning attorney.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Though nobody wants to make mistakes, often times you look back on the errors that you have made in your life and find that they were actually a blessing in disguise. There’s no better way to learn a lesson then through having had real life experiences, but unfortunately there are cases when you make a mistake that you cannot rebound from. Failing to make plans for retirement is one of these irreversible errors.

A lot of people think they’re simply going to retire when they become eligible for Social Security. For those who were born between 1943 and 1954 that time will come when they reach 66 years of age. Full retirement age then rises by two months per year until 1960. Full retirement age for Americans who were born in 1960 and later is 67 years of age.

It should be noted that the above information is current right now, but one of the major challenges that we face as a country is the federal deficit. Whether we like it or not Social Security and Medicare expenditures do comprise a significant percentage of federal spending. There’s a lot of talk about making cuts to these programs, and one way of doing this would be to raise the retirement age. This is something to keep in mind going forward.

If you think that you will be able to retire on Social Security alone you should be prepared to live a spartan existence. The current average monthly Social Security payout is $1072. When you consider the fact that 33% of people who do receive Social Security say that it makes up at least 90% of their income it is clear that a lot of people have not prepared properly.

If you do not want to be one of them, get in touch with an experienced, savvy Atlanta retirement planning attorney to devise a strategy that leads to a truly comfortable retirement.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

There is a misconception in the minds of many people about the need for retirement planning. Some people are under the impression that retirement is an entitlement that comes to you regardless of whether or not you have made any advance financial preparations. Others think that this is not true, but a recent AP-LifeGoesStrong.com poll is proof of this common misconception.

People approaching retirement were asked questions designed to gage their preparation. 24% said they had no retirement savings at all. One out of every four respondents stated that they expect to have to work for the rest of their lives. And, over 60% of them said that Social Security would make up the majority of their income after retirement. The fact is that Social Security alone is not going to be enough for most people. If you want to be prepared you have to look over the horizon early on and make intelligent choices.

To this end, many people decide to join the military when they are young adults. Aside from the satisfaction that you gain from serving your country, members of the armed forces with at least 20 years in the service are entitled to a retirement pension. So you could choose to retire after 20 years and then get a job in the private sector. You would still receive your military pension, and save money earned at your private sector job and invest it wisely for when you decide to retire.

If you retire when you reach full retirement age as defined by the Social Security Administration, you’ll receive the military pension as well as Social Security benefits. In addition, the savings that you accrued over all those years or the 401 (k) plan that you participated in while working in the private sector are available to draw from during your retirement.

The military is not for everyone, but those who serve do have some advantages when it comes to retirement planning. To learn more about retirement planning for veterans, simply contact the experienced attorneys at Pyke & Associates, P.C.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

The process of planning for the future involves multiple phases of life, and they must all be addressed if you want to be completely prepared for all of the eventualities of aging. Looking ahead to your retirement years while you are traversing your career path can be quite enjoyable as you envision all of the things that you will do when all of your time is your own. If you get together with a savvy retirement planning attorney at a relatively young age to devise a plan and stick to it, it is very likely that you will have the financial resources to enjoy your golden years to the utmost.

In the same manner that you must plan for your active retirement to make the most of it, you also need to make preparations for the period of your life that will follow. Many people are under the impression that they probably will never reside in a nursing home or assisted living facility, but the statistics would indicate otherwise. Upwards of 70% of senior citizens will require long-term care at some point in their lives. So in fact it is more likely than not that you will need assistance with your day to day needs eventually.

This is something that you may want to plan for in advance “just in case.” It is better to research your options, make some phone calls and in-person visits, and make an intelligent choice with regard to which facility is best for you rather than waiting until you find that you actually need the assistance. If you wait you may not be as physically and mentally capable of making a sound decision, and it may in fact fall into the hands of your family members.

There is every possibility that you will live in your home until the time of your death and never need long-term care. But intelligent planning can make the move much smoother if you do indeed need day to day living assistance at some point in time.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Atlanta retirement planning involves keeping your finger on the pulse of relevant data and ultimately making intelligent projections based on the information that is available to you. We are living during rapidly changing times so this can be challenging, as many people found out during the financial crisis of 2008. The future of senior entitlement programs is also up in the air as legislators in Washington debate cuts and voucher programs, and these things are important to consider as you are planning your retirement.

To devise a solid retirement plan you have to know all the options that are available to you, and if you own all or most of the equity in your home, that this is a resource that you can tap into if necessary. Reverse mortgages are an option that can put ready liquidity into your pocket, and the way they work is rather succinctly explained in the name of the loan. Rather than you paying a lending institution in an effort to build equity in your home, a lender makes payments to you and receives equity in return.

HECMs or Home Equity Conversion Mortgages are federally insured and backed by the United States government so you can be certain that they are legitimate. In fact, borrowers are required to go through a HUD approved counseling program explaining all the pros and cons of these loans before they can go forward into closing.

The only requirements are that you must be at least 62 years of age, own the home outright or have significant equity in it, and live in the property as your primary residence. You do have to pay the taxes and keep the home in good repair or the loan could be called in early.

After you pass away or choose to move from the home the loan becomes due. At that point you or your heirs could sell the home, satisfy the debt, and keep any remainder that may exist.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.