Myth: “I’m covered by Social Security, so no need for further planning.”
Reality: Social Security benefits are designed to replace approximately 40% of your annual pre-retirement earnings, according to the Social Security Administration. To sustain your current lifestyle in retirement, you must make additional financial arrangements.
Being self-employed means charting your own retirement course without an employer to guide the way. Collaborating with a skilled estate planning team ensures you choose apt investments, funding them appropriately to safeguard your future.
Moreover, planning for any residue in your retirement or investment portfolios is crucial. Such assets should be well-guarded to benefit your heirs. A seasoned estate planning team will design strategies to ensure your beneficiaries are well taken care of.
FAQs on Estate Planning for the Self-Employed
1. How can I secure my business’s future?
The trajectory of your business’s future largely depends on its nature. Some self-employed individuals might have the opportunity to sell parts of their businesses, benefiting from a monetary return for retirement or as a legacy for their families. But for this, the business should have tangible assets to sell. For service-based entrepreneurs like independent contractors, the business might not have salable assets. If that’s the case, regularly setting funds aside becomes essential to secure your and your family’s future.
2. How many professionals should I consult for a thorough future plan?
Achieving comprehensive protection for your future demands expertise from multiple professionals:
Financial Advisor: To assess your current assets, delineate future financial objectives, and create a roadmap to achieve them.
Insurance Agent: To ensure you and your business are adequately insured. Explore options like disability insurance (for income during incapacitation), life insurance (for posthumous finances to your family), and umbrella policies (to mitigate business-related risks).
Tax Professional: For accurate reporting of personal and business incomes, while maximizing tax credits and deductions.
Business Law Attorney: This expert can offer advice on optimal business operations, ensuring maximum asset and liability protection.
Estate Planning Attorney: They play a pivotal role in deciding the fate of your assets and dependents in scenarios where you can’t make decisions or post your demise. Without meticulous planning, these crucial decisions get relegated to a judge, who might rule contrary to your preferences.
Planning ahead, especially for the self-employed, is not just about financial security—it’s about peace of mind. Ensure you’re well-informed and prepared for the future.
Call the Curran Law Firm today to schedule your Estate Planning meeting 561-935-9763