The best time to start saving for retirement is now! The power of compound interest makes early contributions incredibly valuable.

• At your job: If your employer offers a 401(k) or similar plan, enroll immediately and contribute at least enough to get any company match – it's free money!
• Beyond the 401(k): Consider talking to a financial advisor about investment options.
• Build an emergency fund first: Before aggressively saving for retirement, build a solid emergency fund (3-6 months' expenses) in a savings account for immediate needs. Tip: Automate your contributions directly from your paycheck to make saving effortless.

As you near retirement, the focus shifts from accumulating wealth to preserving it and planning for income.

• "Catch-up" contributions: If you're age 50 or older, take advantage of IRS "catch-up" contribution limits for 401(k)s and IRAs to save more.
• Understand income sources: Assess all potential retirement income: Social Security, pensions, and withdrawals from your 401(k)s and IRAs.
• Healthcare costs: Plan for healthcare expenses in retirement, which can be significant. Explore Medicare options and consider strategies for long-term care.
• Withdrawal strategy: Work with a financial advisor to develop a sustainable withdrawal strategy from your retirement accounts that minimizes taxes and ensures your money lasts.

Retirement brings new financial realities, focusing on managing your income and making your savings last.

• Budgeting in retirement: Create a new budget based on your retirement income sources and new spending patterns (e.g., more travel, less commuting).
• Investment management: Continue to manage your investments. A financial advisor can help balance growth with income generation and manage risk in retirement.
• Tax planning: Understand how different retirement income sources (Social Security, 401(k) withdrawals) are taxed and plan for tax-efficient withdrawals.
• Estate planning: Ensure your estate plan is up to date, including wills, trusts, and beneficiary designations, to protect your legacy. FNBO's Trust & Estate Planning professionals can assist with complex estate needs.

Enjoy your retirement by ensuring your hard-earned savings provide the lifestyle you desire.

Estate planning is the process of preparing tasks to manage your financial situation in the event of your incapacitation or death. It ensures your assets are preserved, managed, and distributed according to your wishes, while minimizing taxes and legal fees.

• Peace of mind: It removes uncertainty and potential disputes for your family during a difficult time.
• Asset protection: Helps ensure your wealth is distributed as intended, protecting beneficiaries.
• Healthcare directives: Allows you to appoint someone to make medical decisions on your behalf if you cannot.

While every situation is unique, essential estate planning documents typically include:

• Will (last will & testament): Dictates how your assets (property, money, possessions) are distributed and names guardians for minor children.
• Trusts: Legal arrangements where assets are held by a third party (trustee) for the benefit of beneficiaries.
• Power of Attorney (POA): Designates someone to make financial decisions on your behalf if you become incapacitated.
• Advance directives (Living will/healthcare POA): Outlines your wishes for medical care and appoints someone to make healthcare decisions if you cannot.

These documents should be prepared with an estate planning attorney.

Estate planning isn't a one-time event; it's an ongoing process.

• Life changes: Review your plan after major life events such as marriage, divorce, birth or adoption of a child, death of a beneficiary or executor, significant changes in assets or debt, or a move to a different state.
• Legal/tax changes: Tax laws and estate planning regulations can change, making regular reviews important to ensure your plan remains effective.
• Every 3-5 years: Even without major life changes, a periodic review (every 3-5 years) with your estate planning attorney and financial advisor is a good practice to confirm your documents still reflect your wishes and financial situation.

Proper estate planning ensures your financial accounts are handled smoothly and according to your instructions.

• Beneficiary designations: For accounts like checking accounts, savings accounts, IRAs, and life insurance policies, updating beneficiaries is crucial. These pass directly to the named individual, bypassing your will and probate.
• Joint accounts: Accounts with "right of survivorship" automatically pass to the surviving owner, simplifying transfers.
• Trust funding: If you establish a trust, you'll need to "fund" it by retitling assets (like bank accounts, investment portfolios) into the name of the trust. A financial advisor can help ensure your investments are properly aligned with your estate plan.
• Digital assets: Don't forget to plan for digital assets like online accounts, photos, and cryptocurrency.