Page 86 - Workbook3E

Average Retirement Spending
Here’s a projection of how your retirement spending may be broken down:
How the “older” Urban Household Spends Its Money
Housing 31% Food, Clothing, Personal Items 23% Transportation 12% Medical and Dental 9% Travel, Entertainment, Hobbies 9% Insurance 6% Gifts and Contributions 5%
Other
5%
Source: U.S. Bureau of Labor Statistics
6 Estate Planning
Your “estate” consists of all your assets, plus anything you own—
minus anything you owe someone else. When a person dies, his estate becomes a legal entity. Besides all net assets, an estate may also include instructions regarding the distribution of those assets, payment of debts, and resolution of personal matters. If you don’t leave instructions regarding your wishes—the laws of your State will decide for you.
When your plans are made in the proper legal manner such as a Will, it gives you the opportunity to identify and make plans for all your assets in an unemotional and thoughtful manner.
What’s Estate Planning?
Planning your estate needs to include two main areas of preparation:
1) Identify your assets and establish conditions letting you use them during your retirement, or distribute them after your death in the most effective and cost- efficient way. This area of preparation requires you understand your present financial situation and your future needs and the needs of your heirs.
“I hereby bequeath everything to Spot, my most faithful family member.”
82 Workbook 3: Prepare for the Future