In our last post, we noted how people tend to make New Years resolutions that dont always pan out as they fall by the wasteside by the time the Super Bowl comes around. When it comes to promises to update (or create) an estate plan, this may fall into that category. Even if you are one of those people who are determined not to let history repeat itself this year, we offer the following helpful tips to get you started.
Set realistic goals It is one thing to promise to make a plan to start making an estate plan, put realistic guideposts should be implemented to make the plan a reality. Essentially, giving yourself a date to make an appointment with an attorney or making additional contributions with your next paycheck are such actions that can put you on the path.
Get used to automatic contributions In the same vein of additional contributions, making automatic contributions to a separate retirement account can help in jump starting your savings plan. This is especially helpful for employees who do not have an employer contribution plan where an employer matches the amount you set aside.
Put away portions of windfalls When you get an income tax refund, a raise or some type of bonus, find a way to set a portion apart and put it towards your retirement. If you put the money in a traditional 401(k), you may benefit in two ways: you can reduce your taxable income and have more money that can benefit from compound interest over time.