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RETHINKING RETIREMENT The Rise of Part‑Time Retirees These days, more people are scaling back on long working hours, especially Gen Z and millennials. Many pick up part-time work or projects that give them space without completely severing ties to working life. It’s a slow shift — not a sudden stop — and it’s gaining traction. And for those approaching retirement, it’s something to consider. Retirement doesn’t have to mean walking away for good. This shift is partly fueled by remote and flexible work options, making it easier to downshift without leaving the workforce. A recent study from Fidelity Investments found that 66% of younger workers would prefer a phased retirement, and more than half of all respondents said they plan to work part-time during retirement. The reasons vary. Some want more time for travel, hobbies, or personal projects, but still value structure and purpose. Others want to stay active or involved in their field. Working in some capacity can also help with cash flow, delay Social Security, or cover insurance, which is especially important for those retiring before age 65. That said, partial retirement brings its own planning challenges. Health coverage is often limited for part-time workers. Income from consulting or part-time jobs could also reduce early Social Security benefits. And scaling back hours usually means scaling back contributions to retirement savings. Still, for those who plan ahead, semi-retirement offers a flexible way to ease into the next stage of life. It provides space to try new things without giving up the financial or emotional benefits work can offer.
WILLS vs. TRUSTS What Your Estate Plan Might Be Missing
If you watch enough movies or TV, you’re sure to come across a scene where the main character has to deal with the fallout after the death of a loved one. In nearly every piece of entertainment, they use a will to express the person’s desires and wishes after they pass. It’s almost always a short, cut-and- dried experience where they meet in a closed room with the family attorney or say their loved one bequeathed something to them in their will. That’s about as far as most movies take it, which leads the general public to believe they don’t need anything more than a will to ensure everything gets taken care of when they pass. While wills can be critical to your estate plan, they will not help you escape probate. A will allows you to name a guardian for your minor children and determine who will inherit your assets, but it also guarantees your loved one will have to go through the probate process. When creating or updating an estate plan, you should determine if you would be better off with a will, a trust, or both. The biggest factor separating wills and trusts is the amount of control you have in appointing someone to oversee your estate. On one hand, a trust requires you to appoint a trustee who will manage the contents of your trust while following your directions to distribute everything. On the other hand, a will has an executor and only provides a guideline the probate court must follow when distributing your assets. Your executor acts as your representative during this often expensive and time-consuming process. As stated earlier, trusts go into effect immediately and require you to fund them. You’ll need to transfer your assets out of your name and into the trust account to do this. This can include real estate, bank accounts, retirement accounts, investments, and even your personal belongings. These are all things you may have considered for your will, which is why exploring both avenues is worth the time. Call us today if you have questions about the best option for your circumstances.
On Page 3, we’ll discuss the potential costs of probate and how trusts can help you avoid potentially high fees.
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