Estate planning provides you with ways to build wealth. Planning for retirement through your current estate is possible if your assets create income. Stocks, which can be held in a trust, produce gains that, when managed right, can be held tax-free in Pennsylvania. The aim is to use a portion of your estate gains for retirement. Here are some of the facets of an estate that could help you fund retirement.
The financial portfolio
All of your assets have the potential to increase the value of your estate. Building a financial portfolio is done by accounting for your liabilities and income. The better you understand your finances, the more likely you will foresee your needs in retirement.
Estate planning covers taxes and how your estate can avoid them. As a rule of thumb, estates can be tax havens that protect your assets until beneficiaries receive them. Some of the taxed-delayed options you have include trusts and Roth IRAs.
A power of attorney
Managing your estate and responding to its needs are things power of attorney can do for you. Power of attorney is the authority someone receives that lets them act on your behalf. When you are enjoying retirement, that person manages your estate.
Your will and testament
Peace of mind about your family’s financial future might only be possible if you draft a will before you retire. Children and other beneficiaries of your estate need confidence that you have considered them. Writing or updating a will can even help you develop a succession plan with your intended beneficiaries.
Building an estate can lead your assets toward a trajectory of growth. That growth then supports you when you are no longer working, so you can have a comfortable retirement.