Happy birthday!… Now get your act together!!!
In 2016 the first baby boomers will reach age 70. I can not believe it! If you are looking at the big 70 this year, you have critical decisions have to be made that will affect your retirement. These are critical decisions that you won’t want to forget.
1) Social Security. Sign up if you have not done it yet! Now is the time to receive the maximum benefit from Social Security. There is no advantage to waiting beyond age 70.
2) Required Minimum Distributions- Sign up and begin taking required minimum distribution (RMD) from your tax-deferred plans. The IRS rules state that you must start taking distributions from your IRAs and other tax-deferred plans after you reach age 70 ½. If you miss this deadline or you don’t take out enough, there is a 50% penalty on your taxes. There are a few exceptions but check with your tax advisor!
3) Review your estate plan and make sure you have a plan for long term care in case your health fails! Now is the time to review your plan with an elder law attorney. Elder law attorneys know the laws of qualifying for nursing home care and moving assets to protect them form Medi-CAL Estate Recovery. Make sure all of your plans are documented and you have a strong Elder Law Power of Attorney for finances and Advance Health Care Directive that allows your trusted loved one to help you if you become incapacitated.
If you are in Southern California, LA LAW Center, PC offers free consultations and review of documents, so please call us for an appointment (818) 241-4238. We are happy to review your documents and discuss Medi-Cal Planning.