When it’s time to look long-term in Atlanta, a Retirement Planning Attorney from The Law Office of Paul Black can outline your options. Call to talk with us!
Author: Paul Black
Paul’s experience as the son of two parents with big health challenges is what led him to the work he does today and gives him first-hand knowledge of the challenges that many caregivers and family members face. After graduation from GSU Law, Paul was chosen from dozens of applicants nationwide as one of three 2010-2011 Borchard Foundation Law & Aging Fellows. Paul has been named as a SuperLawyers “Rising Star” in the area of Estate Planning and as a member of Georgia’s “Legal Elite” by Georgia Trend magazine. Published on: April 17, 2023.
Retirement Planning Lawyer in Atlanta
It’s never too early to start planning for your family’s future.
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Retirement planning is a way of preparing for your future by executing a savings program and managing your investments’ resources and risks. Retirement plans ensure you have enough money during your retirement years.
Planning for a successful retirement involves:
Estimating your retirement needs.
Estimating your return on investment.
Creating investment and estate plans.
Investing in a sound retirement plan can provide you and your family with a stable future.
Planning for retirement involves:
Setting retirement income goals
Saving and investing for those goals
Distributing the funds during your retirement
Retirement planning seems simple. The process of planning for retirement, however, is complex. Retirement plans may be highly personalized depending on the individual’s specific situation. There are also a number of different stages and steps to retirement.
The goal is to maximize assets, minimize taxes, and consider long-term care, leave assets to loved ones, and more.
A retirement planning attorney can help you set up a long-term plan for investments and savings.
Benefits of Retirement Planning
Establishing a retirement plan early in your career is crucial for setting aside enough money, setting specific asset and income goals, and reaching certain objectives.
While most young people ignore the importance of a retirement plan, it has lots of benefits, which include the following:
It helps individuals to stay financially independent and well-prepared for medical emergencies
Money from your retirement investments can also help your family in times of need
By investing, you can achieve your future financial goals
How Do You Plan for Retirement?
Regardless of age, there is always time to set money aside for retirement. To accomplish a successful retirement plan, you need to follow the following steps:
- Start by creating a plan on how and when to start saving
- Prioritize your current financial goals and decide on what to set aside monthly
- Choose the right retirement plan for you. Various types of retirement plans vary depending on your work status, so it is important to seek legal advice before choosing one.
- Determine your retirement investments and make regular adjustments
Types of Retirement Plans
Several retirement plans come in many shapes, sizes, and rules and regulations. The US Employee Retirement Income Security Act (ERISA) protects defined benefit and contribution retirement plans.
A defined benefit retirement plan guarantees an individual a set monthly benefit at retirement. The Pension Benefit Guaranty Corporation (PBGC) offers federal insurance to protect the plan up to certain limits.
Defined contribution plans, however, do not specify an exact retirement benefit amount. In the plan, either or both the employee or employer can contribute a certain amount to the employee’s account annually.
After retirement, the employee receives their account balance and investment gain minus any losses incurred. The value of the retirement accounts varies depending on the investments made. Here are examples of defined contribution plans:
Employer-Sponsored Retirement Plans
The 401(k) is a profit-sharing plan offered by major corporations that permit employees to contribute a specified share of their wages to their plan accounts. Taxable income in a 401(k) plan includes designated Roth referrals and distributions.
A 403(b), which is also called a tax-sheltered annuity retirement plan, is used by employees of public schools, tax-exempt organizations, Code Section 501(c)(3) employees, and some ministers.
Individual Retirement Accounts (IRA)
Individual Retirement Accounts (IRAs) provide participants with tax benefits for retirement savings. Individuals can contribute the annual maximum amount permitted by the Internal Revenue Service. IRAs offer investors a chance to save on taxes.
There are various types of IRAs, which include:
- Traditional IRAs: These contributions are tax-deductible. A person who earns money from an IRA is not taxed until they retire. At retirement, withdrawals are taxed as income.
- Roth IRA: The contributions are made after taxes and are not tax-deductible, but earnings and withdrawals are not subject to tax.
- SEP IRA: Employees can contribute to traditional IRAs established in their names by employers, typically small businesses or self-employed individuals.
- SIMPLE IRA: These IRAs are available to small businesses without other retirement savings plans. Savings Incentive Match Plan for Employees (SIMPLE) IRAs allow employer and employee contributions, similar to 401(k) plans, but with simpler administration and lower contribution limits.
Employee Stock Ownership Plan (ESOP)
An Employee Stock Ownership Plan (ESOP) allows employees to possess or invest in company stocks at a fair price. The employees receive their share from a trust.
Cash Balance Plan
A cash balance plan is a versatile type of defined contribution plan. With it, you can invest your money in various mutual funds and other investments, as well as fixed-income options like money market funds or variable rate options. Usually set up like an IRA, these plans are not considered taxable income as per the internal revenue code until you start withdrawing the money.
How Does Estate Planning Affect Retirement Plans?
The key to financial security in retirement is to identify income resources, manage risks, and save. Estate planning is also an important component of retirement planning. The purpose of estate planning is to make a plan for the distribution of a person’s assets and estate after the person dies.
With your retirement savings, you can create an estate plan that will protect the interests of your loved ones. You can seek the advice and guidance of an experienced estate planning attorney for information about risk management in estate planning.
How To Protect My Retirement Plan Accounts During a Divorce?
In a divorce, retirement accounts are part of the couple’s property and need to be divided like any other property. Assets are split according to the time of contribution and type of account. For instance, in a defined contribution plan, the couple needs to provide a qualified domestic relations order (QDRO) before a division happens.
An estate planning and divorce lawyer can help you set up a trust fund to protect your retirement plan contributions in case of a divorce.
What Is the Role of a Retirement Planning Attorney?
An attorney can assist you with the overwhelming planning process as well as provide legal advice to protect your long-term interests regardless of the type of retirement plan you have.
Your attorney can assist you in the following ways:
We can assist you in choosing the right design and aspects of your plan
Advise you on how to take advantage of tax planning and tax laws
Resolve any legal and administrative issues like eligibility and compensations, and assist during hardship withdrawals
Ensure that your documents are drafted to protect your long-term interests
Provide personalized advice on choosing and monitoring retirement plan investments
Provide advice on how to reduce the risk of financial statement fluctuation
The Law Office of Paul Black Can Help You With Your Retirement Planning
Hiring a retirement and estate planning attorney is crucial if you need a solid estate and retirement plan. For your future, you need to hire an attorney who knows about long-term care, protecting your assets, and medical planning, to name a few.
Whether you need long-term care or assistance with obtaining long-term care, The Law Office of Paul Black has a legal team ready to help. We offer comprehensive estate planning and retirement planning services to our clients.
Contact us today to schedule an appointment.