Begin Illinois Retirement and Estate Planning Now for the Future

 Posted on August 21, 2014 in Estate Planning

Statistics show we are living longer than previous generations. The average life expectancy for an American is 78.7 years, and that number increases each year. One major reason for this increase is the vast improvement in diagnosis and treatment of cardiovascular disease.

A longer life allows for the opportunity to enjoy retirement after working for 40 to 50 years. Therefore, if sound financial retirement planning decisions are made, the saved funds will allow for an enjoyable retirement as well as sufficient care should one become medically incapacitated due to illness or injury.

Financial advisors note several common mistakes that many people make, but are easily avoidable, when investing for their retirement. One of the most common mistakes is not paying attention to unadvertised fees. For example, if a person pays a 1 percent fee over the 40 years he or she is working and saving, this percentage can add up to tens of thousands of dollars that will not be in his or her Illinois retirement fund.

Another common mistake is not taking advantage of accounts that offer tax break advantages. IRAs and 401(k) plans are especially advantageous. Yet there are many who are not enrolled in their companies' plans. Economists from the Center for Retirement Research at Boston College say that almost 20 percent of people choose not to enroll in their workplace retirement plans.

Not saving enough can also put a large dent in Illinois retirement plans. Most people only contribute approximately 6 percent of their salary. Even with a 50 percent of an employer match, that is only 9 percent of a person's annual salary being contributed. According to the government, the average median salary is slightly over $44,000. Nine percent is only $3,960 per year being contributed to a retirement. At the end of 40 years, a person will have approximately $160,000 saved—or four year's salary.

Hence, speaking with a financial planner can help with Illinois retirement planning to ensure a secure financial future. However, it is also important to consult an experienced DuPage County estate planning attorney. The attorneys at the law firm of Stock, Carlson & Asso. LLC are available to make sure the assets you earn in your lifetime are used to protect your family when you are no longer here. Call today.