ElderLaw News — The Estate Planning & Elder Law Firm, P.C. — MD, VA, DC
ElderLaw News

ElderLaw News is a weekly e-newsletter that brings you reports of legal developments and other trends of vital interest to seniors and their advocates. This newsletter is brought to you by The Estate Planning & Elder Law Firm, P.C., William S. Fralin, Esq., President., William S. Fralin, Esq., President.

Ideal Nest Egg Grows

A $1 million dollar nest egg used to be considered a fortune.

Lucky the person who could head into retirement with such savings! In 2013, unfortunately, that sum of money, though many would envy, is really not so immense. It's like the 1953 movie, How to Marry a Millionaire. Today, it would have to be changed to How to Marry a Multi-Millionaire. $1 million just doesn't go as far as it once did. In fact, recent calculations by Bernstein Global Wealth management reveal that a hypothetical couple aged 65 with a 4 % annual withdrawal rate (a prudent rate) of a portfolio of $1 million invested in municipal bonds would have a 72% chance of running out of money before they died.

Don't get too discouraged, however. There are ways without having the $1 million in reserve (excluding the value of one's house) to enhance one's portfolio. For one thing, not all portfolios should be totally invested in municipal bonds. A financial adviser can advise about the percentage of stocks, bonds, and cash one should hold. Percentages vary according to the client’s age and particular assets.

Secondly, if you have qualified throughout your working career for a pension, the payout for that may actually exceed the monthly income from a $1 million portfolio. Use it wisely and judiciously. Also, delay retirement as long as possible. Odds are you will live into your 80's, so working past age 65 is not so absurd as it may have been in the past. Remember, too, that the longer you delay in collecting Social Security, the bigger the payout when you finally do begin to collect it.

Finally, save, save, save, and don't begin at age 55. The earlier one starts, the more the money will grow. Old-fashioned habits of discipline and restraint may not pay off immediately, but they do pay off eventually. Remember the fable of the tortoise and the hare? Steady wins the race every time!

Speakers

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Maryland (301) 214-2229
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The Estate Planning & Elder Law Firm, P.C.

The Estate Planning & Elder Law Firm, P.C. is an elder law firm. We represent older persons, disabled persons, their families, and their advocates. The practice of elder law includes estate planning, estate and trust administration, powers of attorney, advance medical directives, titling of assets and designations of beneficiaries, guardianships, conservatorships, and public entitlements such as Medicaid, Medicare, Social Security, and SSI, disability planning, income tax planning and preparation, care management, and fiduciary services. For more information about The Estate Planning & Elder Law Firm, P.C., please visit our website at http://www.chroniccareadvocacy.com.

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This newsletter is not intended as a substitute for legal counsel. While every precaution has been taken to make this newsletter accurate, we assume no responsibility for errors, omissions, or damages resulting from the use of the information in this newsletter. The Estate Planning & Elder Law Firm, P.C. thanks the law firm of Hook Law Center for their input to this newsletter.

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