At SBS Retirement Consultants, we understand that true financial independence in retirement requires a comprehensive approach. As we recognize National Make a Will Month this August, we want to highlight why estate planning—particularly creating a will—is an essential component of your complete retirement strategy.
Why Creating a Will Matters
Did you know that despite its importance, nearly 70% of American adults don’t have an up-to-date will? This critical document does more than just distribute your assets—it provides peace of mind and protection for you and your loved ones. Here’s why it matters:
- You determine your legacy, not the courts. Without a will, the state decides how your assets are distributed, which may not align with your wishes.
- You protect your loved ones from unnecessary stress. A clear will prevents family conflicts and reduces the emotional and financial burden on your family during an already difficult time.
- You can provide for those who depend on you. A will ensures your dependents receive the support you intend for them.
- You can support causes that matter to you. Your will can include charitable giving to organizations you care about in the Fairbanks community.
How Estate Planning Fits Into Our Holistic Approach
We view estate planning as a crucial element within our comprehensive financial planning framework. While our holistic approach addresses six key areas (accumulation, risk management, taxation, retirement planning, estate planning, and long-term care planning), estate planning deserves special attention during National Make a Will Month.
Estate Planning: Securing Your Legacy
Estate planning goes beyond simply drafting a will. It’s a comprehensive strategy to ensure your assets are preserved and distributed according to your wishes, while minimizing complications for your loved ones. Key components include:
- Will creation and maintenance: The foundation of your estate plan that directs the distribution of your assets and can name guardians for minor children
- Beneficiary designations: Ensuring your retirement accounts, life insurance, and other assets pass directly to your intended beneficiaries
- Powers of attorney: Appointing trusted individuals to make financial and healthcare decisions if you become unable to do so
- Advance directives: Documenting your wishes for medical care when you cannot communicate them
- Trust considerations: Potentially establishing trusts to provide for specific needs, protect assets, or reduce tax implications
Effective estate planning doesn’t exist in isolation—it works in harmony with the other areas of your financial life. Your accumulation strategy builds the assets you’ll eventually transfer, your tax planning minimizes the burden on your estate, and your long-term care preparations protect your legacy from unexpected healthcare costs.
By prioritizing estate planning within your comprehensive retirement strategy, you ensure that your lifetime of careful financial management culminates in a meaningful legacy that reflects your values and supports those you care about most.
Special Considerations for Alaska Residents
As Alaska’s retirement planning specialists, we understand the unique considerations for our community:
- State of Alaska Employees: Your PERS or TRS benefits require specific estate planning strategies to maximize benefits for your survivors.
- Federal Government Employees: FERS, CSRS, and TSP accounts have distinct beneficiary rules that should align with your will.
- Alaska Union Members: Your union benefits may include life insurance and survivor benefits that should be coordinated with your estate plan.
Take Action This Month
National Make a Will Month is the perfect time to take this crucial step in your financial planning journey. Whether you’re creating your first will or updating an existing one, this document should evolve as your life changes.
At SBS Retirement Consultants, we can help coordinate your estate planning needs with qualified legal professionals while ensuring it integrates seamlessly with your overall retirement strategy.Don’t leave your legacy to chance. Contact us today at 907.374.0487 to schedule an appointment and assess your complete retirement plan, including estate planning.
