When it comes to financial planning in many instances the more conservative route is going to be the more fruitful one. Some people feel as though the ideal is to retire as soon as possible, but you may want to consider a different approach and exercise some patience.

In a perfect world you would have accumulated sufficient resources to retire without concerning yourself with your Social Security benefit at all. Unfortunately, few of us live within this realm. The vast majority of Americans will rely on Social Security to one extent or another as retirees.

It is important to understand the fact that you do not have to retire when you reach the age of full eligibility, which is either 66, 67, or somewhere in between if you aren’t yet eligible for the program. You can choose to continue working while delaying your application.

This will result in the accumulation of delayed retirement credits. You can accumulate these credits until you are 70 years of age.

Your benefit will rise by 8% for every year that you decide to delay applying after you become eligible for your full benefit.

This larger benefit can result in a significantly improved quality of life during your retirement years.

Plus, you may earn more money during those final working years than you did at some point earlier in your life. An individual’s Social Security benefit is based on his or her highest 35 earning years.

As a result you would be increasing your benefit on another level if you did in fact push these lower earning years out of the equation.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

When you are planning your estate you should be aware of all the possible courses of action that are available to you. This is why it is a good idea to speak with a licensed estate planning lawyer before you make any decisions.

With the above in mind let’s take a look at how a Roth individual retirement account could be used as an estate planning tool.

If you have a conventional individual retirement account you make contributions before you pay taxes. The growth is not taxed along the way, but you pay income taxes when you withdraw funds from the account. You can start withdrawing money from the account when you are as young as 59.5 years of age without triggering any penalties.

With a conventional individual retirement account you must begin taking distributions when you reach the age of 70.5.

On the other hand, with a Roth IRA you make your contributions with after-tax earnings. As a result you don’t have to pay taxes when you withdraw money from the account.

In addition to this, unlike the conventional individual retirement account you are not forced to accept distributions. You can let that tax-free interest continue to accumulate unto you pass away if you choose to go this route.

This is obviously going to be good for the beneficiary or beneficiaries. There is a mandatory distribution requirement for the beneficiaries, but they could take the minimum allowable by law and stretch out the benefit of tax-free growth for as long as possible.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

The premarital agreement is often used by people who are entering into second or third (or fourth or fifth) marriages.

Many of these individuals have children from previous marriages, and they want to be certain that they have control over personal assets so that they can arrange for their children to receive inheritances. Entering into a prenuptial agreement can be a very prudent decision because the majority of these marriages do not last.

Just about everyone is aware of the fact that they could choose to enter into a prenuptial agreement. However, you would do well to understand the fact that it is also possible to enter into a post-marital agreement.

You could do so for the same purpose if you are a parent who has remarried. If you did not execute a prenuptial agreement for whatever reason you still have the option of entering into a post-marital agreement assuming your partner is willing to do so as well.

These agreements can be useful under a different set of circumstances. What if your spouse wants to do something with the shared assets that you don’t agree with? Such a disagreement can take place while you are planning your estate as a couple or outside of an estate planning context.

The solution could be to define the personal resources of each individual through the execution of a post-nuptial agreement. You can then go forward making financial decisions on your own without the need to win the approval of your spouse, and he or she would be afforded the same freedom.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

As you are looking ahead toward the future you have to make some decisions regarding your projected retirement date. Understanding exactly when you will become eligible to receive Social Security is generally going to be part of this equation.

This is a little more complicated than it may seem on the surface. It should be noted that these figures are always subject to change, but right now you can start to collect Social Security when you are as young as 62. But, you would be receiving a reduced benefit.

The age of full Social Security eligibility varies depending on the exact year of your birth. If you’re not currently receiving Social Security benefits your age of eligibility is either 66, 67, or somewhere in between.

The options don’t stop there. You can alternately choose to delay your application beyond your age of full eligibility. If you go this route your benefit will be greater than it would be if you started receiving a benefit as soon as you were eligible for the full amount.

Many people choose to work after they reach the typical retirement age, and some do this because they like the work. Others are forced to continue working even when they would prefer not to for financial reasons.

Staying active can be healthy on more than one level if this is your choice. But the word “choice” is key. You don’t want be working when you are in your late 60s, 70s, and perhaps beyond because you have no choice.

Those who stick to a sound retirement plan over a number of years are generally going to be able to work on their own terms if they choose to do so. People who live in the moment spending every penny they earn along the way may have few options late in their lives.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

There are those who observe the lifestyles of some of their peers. These observers are still working though they are in their 70s.

They watch other seniors going on vacations, playing golf regularly, and doing extraordinary things for their children and grandchildren. These individuals marvel at how “lucky” some people can be.

If they knew the whole truth they would recognize the fact that these successful retirees had the foresight to plan ahead carefully as young adults. They measured every purchase for years, invested wisely and always acted with the future in mind.

At this exact moment how bright is your future? Have you begun making any plans that lead to a particular financial destination?

Social Security is a safety net, not a retirement plan. It can certainly help, but you must be realistic and practical as you gain an understanding of what you can expect to receive from Social Security and supplement it accordingly.

You can find out where you stand with regard to Social Security by registering an account on the Social Security website. It will then be possible to access your statement that will let you know what your anticipated benefit amount is based on your work history.

When you do obtain this information you will recognize the fact that few people can retire comfortably on Social Security alone.

Retirement planning is a long-term process. If you get started early enough and work within a cogently conceived plan with consistency over a number of decades you may well be one of the “lucky” ones.

If you have no plan at all as you take life one day at a time you may find yourself working during the latter portion of your life while others your age are relaxing.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

Self-employment can be a very fruitful avenue for many individuals. There are a multitude of possibilities, and due to the advent of the Internet a lot of people can actually work from home these days.

Those who work for an employer are often offered the opportunity to contribute into a 401(k) plan as they look forward to retiring someday. People who work for themselves are not going to have this option, so they must take matters into their own hands.

You can in fact open a self-employed 401(k) account if you work for yourself.

When you work for a company and contribute into the 401(k) plan at work the contributions are deducted from your check before taxes are applied. As a self-employed individual you have to be proactive about making the deposits but they are tax-deferred as well.

The maximum tax-deferred contribution that one can make into a self-employed 401(k) in 2013 is $17,500. This is an increase of $500 over the maximum that was in place last year.

It should however be noted that you are offered an opportunity to “catch up” if you are at least 50 years of age. Those who are 50 years old and older can add an additional $5500 in tax-deferred contributions in 2013.

Social Security payouts are quite modest, and there are ever-rising out-of-pocket Medicare costs to pay when you are a senior citizen.

Given the limitations of these programs planning ahead to feather your own nest is necessary if you want to be able to retire. If you are self-employed you would do well to discuss your future with a good retirement planning lawyer if you are not currently working within a professionally prepared financial plan.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

When a new year begins people sometimes make significant changes and take care of responsibilities that they have been setting aside. With this in mind we would like to encourage people who are unprepared for the future to start planning ahead in 2013.

It is best to plan from a holistic point of view with your financial goals for different periods of life firmly in focus. And ultimately, this planning culminates with a well constructed estate plan that provides financial resources for those that you love after you pass away.

The fact is that retirement is not a given, and many people must work beyond their age of Social Security eligibility because they find that their benefit is simply not enough. You would do well to do some careful research with the assistance of a good retirement planning attorney to devise a plan so that you are not among those who are still punching the clock when you are 70 or 75 years of age.

Incapacity planning is another must for serious minded individuals. People are living longer than they ever have before, and it is not uncommon for individuals to live well into their 80s and beyond.

According to the Alzheimer’s Association 40% of people who are at least 85 are suffering from the disease. And of course, there are other causes of incapacity beyond Alzheimer’s disease.

If you are ready to start traversing a cogently conceived path that leads to a comfortable and secure future we would be more than glad to provide you with a free consultation. You can set up an appointment by giving us a call at 216-472-1500 or 440-951-1525.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

An individual retirement account can be an important component to your retirement plan. When you start such an account you are taking a very positive step toward developing a financial underpinning in anticipation of your golden years.

While IRAs are obviously relied upon by the people who paid into the accounts over the years some individuals will find that they have something left over, and as a result these accounts have estate planning significance as well.

With traditional individual retirement accounts you are required to take distributions once you are 70.5 years of age. So even if you reached this age and you really didn’t need the money you would be compelled to take distributions. And, they would be subject to taxation because the contributions were made with before tax earnings.

However, if there was something left in the account after you pass away it would go to the beneficiary that you name when you start the account.

This beneficiary can “stretch” the IRA by taking the minimal allowable distributions. In this manner the tax free growth of the account will be maximized.

It should be noted that with Roth IRAs you are not required to take distributions at all because you deposited after-tax earnings. Because of this you could know all along that you were not going to take distributions out of the account and use it exclusively as an estate planning tool.

Your beneficiary would be required to take mandatory minimum distributions, but tax advantages would be realized over an extended period of time.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

Sometimes you see a couple who did not earn an extraordinarily huge annual income living comfortably during retirement.

On the other hand, you may know someone who is over the age of 70 who is still working. This person has always had a great job, but the money just isn’t there and he or she has to keep on showing up at work every day.

We all want to make as much money as possible, and the more you make the more opportunities you have with regard to saving for the future. But at the same time, you can make bad choices as someone who makes a hefty paycheck and make good choices even if you make less.

The key is to work within a carefully constructed plan and subsequently exercise the discipline that it takes to stick to the plan over a long period of time.

Time is your friend if you get started early. If you start working with a good retirement planning attorney when you are just getting started on your career path and you project the numbers outward you can see how you are in a unique position to feather your nest for your senior years.

All it takes is some sustained focus with your eye fixed firmly on the prize that lies in wait when your retirement date arrives.

If you want to make the most of your senior years right now would be a good time to sit down and discuss a cogent long-term financial plan with a Cleveland retirement planning attorney.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

Planning for retirement is essential for serious minded individuals who want to be able to stop working someday. It is not easy to pay your way for perhaps 20 years or more without working. Most people are going to have to exercise financial discipline throughout their lives to reach their goals.

Simply relying on Social Security to provide you with retirement income is not going to do the trick. At the time of this writing the average payout is just under $1240 per month, and this is certainly not enough to live on comfortably.

We can report that benefits are going up because the 2013 cost of living adjustment has been announced. Surely this COLA will make things a lot easier for Social Security recipients, right?

In fact, it will have very little impact.

The 2013 Social Security cost-of-living adjustment is going to be 1.7%. For someone receiving the average Social Security benefit this will equate to an increase of about $20 or so each month.

Five bucks a week is not going to change your life. But in fact, in a very real sense the true increase is even less than 1.7% when you factor in the hike in the Medicare Part B premiums that is going to be implemented in 2013.

These premiums are deducted from your Social Security direct deposit. The amount of the increase is expected to be approximately $7 each month.

Retirement can be one of the most enjoyable periods of your life. Making a few sacrifices along the way as you accumulate a nest egg for your golden years is certainly worth the effort.

If you do not plan ahead and simply live in the moment throughout your life you may wind up working for a very long time.

The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.