Sometimes retirement planning and estate planning go hand in hand. This is especially true when it comes to naming or changing beneficiaries for your retirement plan. It is important to know the rules surrounding plan beneficiaries, as decisions you make can have a big impact on your family.

[See top-ranked ETFs by category ranked by U.S. News Best ETFs.]

You generally can name anyone as your beneficiary: your children, your grandchildren, even your next-door neighbor. You can also name a trust. But if you are married, the law requires that your spouse be the main, or primary, beneficiary of your company-sponsored retirement plan unless he or she waives that right in writing. This point can be especially important in the case of second marriages. A waiver may make sense if your new spouse is already set financially or if children from a previous marriage are more likely to need the money.

Keep in mind that only spouses can roll over assets to a tax-deferred individual retirement account (IRA). Non-spouse beneficiaries are not eligible for a tax-deferred transfer to an IRA, which means they will be subject to income taxes on any distribution they receive (as will spouses who do not roll over the assets).

You can name more than one beneficiary, but you will need to specify how much each person will receive in percentage terms. Otherwise, the distribution will be divided equally. Changes in your life, such as the birth of a child, can affect how many beneficiaries you may have. Again, with company-sponsored plans, spouses must waive their right to receive 100 percent of the assets if they are distributed to multiple beneficiaries.

Your beneficiary designation can also affect your own distributions during retirement. The distribution amounts you receive may depend largely on the age and relationship of your named primary beneficiary.

When reviewing your overall estate plan, make sure to include your retirement plan and update your beneficiary designations if necessary. This will help ensure that the entire estate plan flows smoothly and that changes in your family structure are addressed. Also keep in mind that beneficiaries are paid directly as named. Wills generally do not override the directions given on your beneficiary designation form, so do not assume that changing your will is enough to make sure your wishes for your retirement plan are carried out.

[See Questions to Ask When Drafting an Estate Plan]

Consider all consequences, financial and emotional, when naming or changing beneficiaries for your retirement plan. You may want to seek the advice of a tax adviser or an estate planning attorney, as well as a qualified financial professional.

Kenneth Roberts, CFP® CLU, is a Partner at Harbor Lights Financial Group, a full service wealth-management team that has been dedicated to assisting clients in the accumulation and preservation of their wealth for over 25 years. For more information, go to http://www.hlfg.com.

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Selecting Your Retirement Plan Beneficiaries

Some are old enough to recall pioneering aviator Charles Lindbergh's tickertape parade. Others can share vivid memories of World War II or the Great Depression.

But unlike most people their age, New York City's federal judges prefer to strike one topic from the record: retirement.

"We don't talk about when anybody's going to quit or retire," says John F. Keenan, an 82-year-old Manhattan judge. "Some of the best judges we ever had ... they worked right up until they died."

The federal judicial system has become a case study in how the country will cope with a graying America, where each economic crisis forces more people to work beyond 65.

Recent interviews with several lifetime tenured judges and experts suggest people often can thrive when challenged to work into their 70s, 80s and even 90s. Nearly all the judges have one thing in common: no plans to drop the gavel on their careers. The trend caused the government in December to adjust its projection for planning purposes that federal judges retire by age 85. For New York, the expectation is now that only half will retire by then.

"Everybody kind of goes on the assumption that you're going to crap out. Maybe you don't have to," says Robert Sweet, another Manhattan judge.

Sweet is preparing for his 90th birthday. He skis two to three days a week when he's at his Idaho getaway. He also ice skates and plays tennis.

AP

FILE- In this March 4, 2011, file photo, Judge Jack Weinstein speaks with reporters after visiting the Louis Armstrong housing projects in Bedford-Stuyvesant section of the Brooklyn borough of New York. Weinstein, 90, is a World War II veteran appointed by President Lyndon Johnson to the bench in Brooklyn more than four decades ago. Unlike most people their age, New York City’s federal judges prefer to strike one topic from the record: retirement. The federal judicial system has become a case study in how the country will cope in coming decades with a graying America, where each economic crisis increases the likelihood that more people must work beyond 65. (AP Photo/Bebeto Matthews, File) Close

"The arbitrary idea of 65 now is insane, in terms of capacity," said Sweet, who's had knee replacement and wears a hearing aid. "There are now increasing numbers of ways when things begin to poop out, there are curative things that make things better."

The federal courts from coast to coast are places where age is valued like nowhere else. Thanks to the founding fathers, the Constitution guarantees judges jobs for life with full pay — whether they work or not. Many state judges must retire at age 70.

"It's extraordinary," Sweet said. "Just the idea you can keep going if you wish until A, you croak, or B, you or somebody else comes to the realization that you can't go on."

He added: "Don't you think societally, it's important to have the seniors not sitting on the porch, rocking and thinking about how things used to be? But thinking about tomorrow, how things are and how they're going to be?"

Experts on the aging workforce agree.

"There's no question that people who keep on working are happier and healthier," said George Valliant, professor of psychiatry at Harvard Medical School and the former director of the Harvard "Grant Study of Adult Development."

Valliant calls mandatory retirement in many professions "really dumb," given the steady rise in mortality rates. The judges' performance is proof that wisdom and the ability to see irony and paradoxes frequently improves with age, he said.

"They've got what's called compensatory or reserve intelligence," he said.

With aging, "You sometimes lose names," said 90-year-old Jack Weinstein. "You don't lose the capacity for decision making and the capacity for analysis."

Older judges benefit from having nothing to prove, added Weinstein, a World War II veteran appointed by President Lyndon Johnson to the bench in Brooklyn more than four decades ago.

"You don't care really what people think of you," he said. "You're not going anyplace. You're doing it for the joy. And as a public service."

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'Retirement' Missing From Vocabulary of NY Judges

But those not quite willing to give up on the dream might consider an alternative approach. Christine Fahlund, a senior financial planner for T. Rowe Price, suggests people consider using their 60s as a “practice retirement,’’ where they keep working, but stop funding retirement plans and use the money to have fun.

What does “practice retirement’’ look like? Instead of retiring and sailing around the world, you might keep working and simply buy a boat; rather than spending the winter on a Florida golf course, take a deluxe golf vacation. Spend a week at cooking classes in Paris, on a bike trip, or seeing Broadway shows in New York.

“The idea is to have your employer fund the fun,’’ Fahlund said.

Moreover, diverting those 10 years of retirement savings to discretionary income has a much smaller impact on retirement than one might expect. By continuing to work, you keep both your salary and your workplace benefits intact. Moreover, each year you delay retirement eliminates a year that has to be financed with savings.

Given today’s life expectancies, that can have a big impact on the numbers. According to the Society of Actuaries, some 13 percent of men and 20 percent of women now aged 65 will still be alive at age 95. Retiring early for them would mean funding more than three decades of retirement with assets accumulated during roughly four decades of work. Simply staying in the workforce a few more years makes that equation easier to balance.

Then, too, there’s the fact that delaying Social Security greatly increases your benefits. Waiting to age 70 almost doubles the annual purchasing power compared with starting benefits at age 62, Fahlund said. And those higher benefits are not only indexed to inflation, but will continue for the rest of their lives.

Consider the example of a couple, each age 60, with a combined salary of $100,000 and a $500,000 nest egg. They’ve been tucking away 15 percent of their annual salary in their retirement plans. If they retire at 62 and start taking Social Security, they end up with an annual retirement income of $51,974 and about $526,000 in retirement savings when they hit age 70.

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'Practice retirement' an option for those with small nest eggs - The Boston Globe

TORONTO, ONTARIO--(Marketwire -02/26/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 49:

Understand the dangers and protect your retirement nest egg against fraud and theft

There are precautions you can take to protect your retirement savings against falling prey to fraudulent activity:

-- Protect your Personal Identification Number (PIN) - Memorize your PIN,
keep it confidential and cover the keypad while punching it in to ensure
no one sees it when you make a credit or debit card transaction. If you
must write it down, never keep it in your purse, wallet or mobile phone
contacts. Keep it somewhere safe and separate from your credit and debit
cards.
-- Do not give out personal information - If you receive an email or call
asking for personal information, be wary. Ask why it is being requested,
how it will be used and how it will be protected. When in doubt, err on
the side of caution and do not provide your information and do your own
research by contacting the company directly to find out whether the
request is valid or not.
-- Always review your statements - One of the easiest ways to spot fraud is
to review your bank and credit card statements every month. If there are
any transactions you do not recognize, contact your financial
institution immediately.
-- Shred it - Rather than put mail with your name, address and any other
personal information straight into the recycling bin, shred it first.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Protect Your Retirement Nest Egg Against Fraudulent Activity

Video Link: https://www.youtube.com/watch?v=qqejoZlpYZs

22-02-2012 17:45 ESPNBoston's Mike Reiss reports on Patriots tackle Matt Light considering retirement and Tom Brady dealing with the passing of his mentor Tom Martinez.

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Light Mulls Retirement - Video

The tsunami of baby boomers rolling into retirement age will continue for the next twenty years, with approximately 10,000 people daily reaching the age of 65. The journey into the retirement years can be surprisingly emotional. Most baby boomers realize they will soon be forced to confront their retirement preparedness. They will also find out if they are mentally ready to retire.

[See 10 Important Ages for Retirement Planning.]

Retirement can generate a variety of conflicting emotions and new challenges to deal with. Here’s a look at some of the emotions that can be part of the retirement mindset:

Anger. Financial losses from the recent recession have taken a bite out of most retirement nest eggs. During the most recent recession, 43 percent of retirees expressed anger at the impact on their retirement plans, and 39 percent remain worried about their financial situation, according to a SunAmerica Financial Group survey. Baby boomers may also experience frustration because they cannot easily make up for lost time and savings. Many people will be forced to continue working and delay retirement beyond their original plans. In addition, many perpetually active baby boomers will need to face their diminishing physical and mental capabilities. It can be frustrating to finally have time to do what you want to do, but not the energy or ability to do it.

[See The 10 Best Places to Retire in 2012.]

Fear. Baby boomers have witnessed their parents aging and know there is no avoiding their own journey down that path. They will be forced to deal with health issues and dependency on others. They may also have to struggle with finding a new purpose in life, avoiding boredom, and staying mentally sharp.

Expectation. Over half of baby boomers (54 percent) view retirement as an opportunity to reinvent themselves, SunAmerica found. Whether experimenting with a new career or pursuing a life-long passion, retirement affords baby boomers the time they need to try something new. Most baby boomers can expect to live long and productive lives. Two-thirds of respondents say their goal is to live a productive life to age 100.

[See 7 Misconceptions About Retired Life.]

Opportunity. Demanding careers prevented many driven baby boomers from spending quality time with family. Although they cannot make up for missed opportunities, seniors now have a second chance to renew family ties and build stronger relationships.

Dave Bernard is not yet retired but has begun his due diligence to plan for a satisfying retirement. With a focus on the non-financial aspects of retiring, he shares his discoveries and insights on his blog Retirement–Only the Beginning.

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Can Baby Boomers Cope with Retirement Realities?

It's a move of desperation: Raiding your retirement plan to get at the cash because life has thrown you a curve ball.

But desperate economic times may call for desperate measures; sometimes you just have to get cash from somewhere. And if that's the case, there are some ways to get at that retirement money before age 59, without paying the hefty 10% penalty which generally applies for touching those funds early.

Of course, it's better not to withdraw money from your 401(k)s or individual retirement accounts before you've retired -- since it is an uphill battle to rebuild savings and few are able to do it.

If you've got emergency savings or taxable accounts, use those funds first. And if you have the ability to take a loan from your 401(k) -- which is generally limited to the one at the company where you now work -- that's a smarter move than an outright withdrawal. However, if you had other options, perhaps you wouldn't be reading this far.

Generally, if you need to take cash out of your retirement plan, whether 401(k) or IRA, before the age of 59, you'll owe income taxes and a 10% penalty for early withdrawal. No matter what, you'll still owe the taxes, but there are situations where you can avoid paying the penalty.

You can generally withdraw penalty-free from a 401(k) or IRA if you become permanently disabled, if you need to pay for medical expenses (if they're above 7.5% of your adjusted gross income), or if you're facing an Internal Revenue Service levy (that's a tough enough one without the extra penalty).

You can also start a regular retirement stream early, or access income from your retirement funds in regular payments for at least five years till you turn 59��.

The rules on IRAs also allow you to take some cash out penalty-free to pay health insurance premiums if you're unemployed, to help you make a first home purchase, or to cover the costs of college tuition and expenses.

The exception that flies under the radar -- and that may be most useful, especially for those in their 50s who are now struggling (or are hoping to retire early) -- is the one where you start an income stream early.

In Internal Revenue Service parlance, you won't face a penalty for withdrawals if you set up "substantially equal periodic payments" or what's sometimes called 72(t) after the section of the tax code.

"There are certain exceptions to the penalty for people who have logical, normal commitments," explains Allison Shipley, a partner in the personal financial services practice of PricewaterhouseCoopers in Miami. "The one I used to focus on with people is making substantially equal periodic payments. If you need to dip into your savings, but you're still trying to manage it for retirement, you could start a distribution program and save on the penalty."

Taking advantage of this "substantially equal periodic payments" strategy involves a little bit of complicated math, as these annuitized payments have to be calculated based on your life expectancy (or one of two alternate, more complex, methods), and you have follow the IRS's rules closely. But your 401(k) administrator or IRA administrator should be able to walk you through it. There also are online calculators, such as one from Bankrate.com, which can help.

Here's how it works: Say you're 50 years old and have $400,000 in an IRA, and you need some cash but hope to avoid the penalty. You'd look up your life expectancy, then divide your account balance by it, repeating this calculation each year with new figures for both your account balance and life expectancy. In this example, cribbed from the IRS's explainer on the topic, that would be $11,696 in the first year. Once you start taking these payments, you have to continue doing so for at least five years or until you turn 59 ��, whichever is longer.

It doesn't give you a huge amount of cash without penalty, but it might just give you enough. After all, the average amount of a hardship withdrawal from a 401(k) was just $5,510, according to a 2011 study by consultants Aon Hewitt.

"I wish I had known about that," says Vicki Contavespi, a public relations executive, who is still rebuilding her retirement savings with new contributions, after raiding it, in dribs and drabs, during a 13-month period of unemployment a decade ago. "I was only taking money out when I desperately needed to take it."

Since the financial crisis began in 2008, not surprisingly, the number of people raiding their retirement funds has increased: At the end of 2010, 28% of active 401(k) participants had loans outstanding, up from 22% five years earlier, and another 7% took withdrawals, up from 5%, according to the Aon Hewitt study.

If you have multiple retirement plans from multiple jobs over the course of your career, you'll need to read the fine print carefully in order to choose which one to tap first.

Not only are the rules for IRAs different from those for 401(k)s, but corporations also may add additional rules on distributions from their own 401(k)s.

"It can be very confusing, and in some cases we're talking about pretty big dollars," says Gil Charney, principal tax research analyst at H&R Block's Tax Institute. "Sometimes it's better to take a distribution from an IRA where a penalty exemption exists than thinking broadly that the penalty exception will exist for the 401(k) when it doesn't."

A final note: If you have a Roth IRA as well as a traditional one, it may make sense to tap the Roth first. That's because you already paid income tax on the money you put in, so if you've held it for five years, and meet the rules for avoiding the penalty, you likely won't have to pay any more tax now.

Hopefully, you'll never have to tap your retirement savings early. But if you do, better to do it wisely. (Editing by Linda Stern and Andrea Evans)

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How to Raid Your Retirement Plan

With the different features and benefits that apply to the various types of individual retirement accounts (IRAs) and plans, choosing the one that is most suitable can give you gray hairs before they are due. In some cases, the process is easier because choices can be narrowed down by eliminating the plans for which an individual is ineligible. In this article, we'll look at some scenarios and the factors that should be considered when you are faced with choosing which IRA is best for your golden years.

See: Introduction To Retirement Plans

Eligible for a Roth IRA and a Traditional IRA
For an individual who is eligible for both a Traditional IRA and a Roth IRA, making the choice usually depends on whether the individual is eligible (or wants) to claim the deduction for the Traditional IRA contribution, and the individual's current tax bracket compared to the projected tax bracket during retirement. This choice is determined by which plan results in lower taxes and more income. For more on this see, Roth Or Traditional IRA ... Which Is The Better Choice?

Eligible for a Roth IRA, a Traditional IRA and a Salary Deferral Contribution
For an individual who is eligible for a Traditional IRA contribution, a Roth IRA contribution and a salary deferral contribution to a 401(k) plan, but cannot afford to contribute the maximum amount to the 401(k) plan and the IRA at the same time, a decision must be made as to whether it is more beneficial to choose to make one, two, or all three work. Some of these concepts can also apply if the individual has the option of contributing to both a traditional 401(k) and a Roth 401(k).

Choosing One
Let's take a look at Casey, who works for Company A and is eligible to make a salary deferral to Company A's 401(k) plan.

Casey's annual compensation is $50,000. Casey can afford to contribute only $2,000 each year. Casey feels that the fees that will be charged to each accounts makes it cost prohibitive to split the contribution into more than one account. Therefore, Casey must decide whether it makes better financial sense to contribute to the 401(k) or an IRA. The 401(k) will likely be the better choice if Casey will receive a matching contribution on his salary deferral contribution. Let's look at the growth of his accounts over a 10-year period, assuming a matching contribution of $1 for each $1 Casey contributes, up to 3% of his salary. This means that Casey will receive a matching contribution of $1,500 ($50,000 x 3%).

No Matching Contributions Made
If no matching contribution is being made to the 401(k) account, Casey will need to consider the following:
The investment choices available: Large corporations typically limit investment choices to mutual funds, bonds and money-market instruments. Smaller companies may do the same, but are more likely to allow self-direction of investments, allowing the participant to choose among stocks, bonds, mutual funds and other available investments, similar to the investment options available in a self-directed IRA. If investments in the 401(k) are limited, Casey will need to decide whether he prefers to contribute to an IRA, which would provide a broader range of investments from which to choose. The fees that apply: A hot-button issue will probably always be the fees that are charged to 401(k) accounts. These are not as visible as the fees that are charged to an IRA, leading many participants to believe that 401(k) fees are minimal to non-existent. (To learn more, check out the Department of Labor's report "A Look At 401(k) Plan Fees".) Casey would need to research the fees that apply to the 401(k) plan and compare them with the operational and trade-related fees that apply to the IRA. Accessibility: While retirement savings are intended to accumulate until retirement, situations sometime arise that leave the participant no choice but to make withdrawals or loans from their retirement accounts. Generally, assets in a 401(k) plan cannot be withdrawn unless the participant experiences a triggering event. However, if the plan has a loan feature, Casey could take a loan from his account and repay it within five years (or longer if the loan is to be used for the purchase of a principal residence). IRA assets can be withdrawn at any time. However, except for a rollover contribution, the amount cannot be repaid to the IRA. For information about taking loans from a qualified plan account, see Should You Take A Loan From Your Plan?, Borrowing From Your Plan and Eight Reasons To Never Borrow From Your 401(k).
Professional Investment Management Cost and Availability: If Casey is not proficient in investment management or he does not have the time properly manage his plan investments, he may need to engage the services of a professional investment advisor to make sure his asset allocation model is consistent with his retirement goals and objectives. If Casey's employer provides such services as part of its benefits package to employees, Casey will not incur an additional cost to have a professional manage his investments. This perk may not be available for an IRA unless the employer extends such services to assets outside of its employer-sponsored plan. These points may be well worth considering, even if matching contributions are being made to the 401(k) account. If the matching contributions are significant, they may outweigh the benefits of saving in an IRA instead of a 401(k).

Choosing All Three
Now, let's take a look at TJ, who can afford to fund his 401(k), his Traditional and his Roth IRA. If he can afford to contribute the maximum permissible amounts to all his accounts, then he may have no need to be concerned with how to allocate his savings. On the other hand, let's assume Casey can afford to save only $7,000 for the year. The points of consideration for Casey (above) may also apply to TJ. In addition, TJ may want to consider the following:

Getting the maximum match: If a matching contribution is being made to the 401(k) plan, consider the maximum amount that needs to be contributed to the plan in order to receive the maximum available matching contribution. For instance, if TJ's compensation is $80,000 per year and the matching contribution formula is $1 for $1 up to 3% of compensation, he will need to contribute at least $2,400 to his 401(k) plan in order to receive the maximum available matching contribution of $2,400. Choosing the IRA: Because TJ's IRA contribution will be limited to the dollar amount in effect for the year, he will need to decide whether to choose the Roth IRA, the Traditional IRA or to split the contribution between both.
Which to fund first: It is usually best to make contributions to the retirement accounts early in the year, or a little each month - beginning early in the year so that the assets can start accumulating earnings as soon as possible. Consideration must be given to how matching contributions are made. Some companies contribute the amount in one lump sum at the end of their tax-filing deadline, while others contribute the amounts throughout the year. If the latter applies, making salary deferral contributions to the 401(k) early in the year is recommended. Other Points of Consideration
In addition to the points listed above, individuals should consider other factors such as:
Age and retirement horizon: An individual's retirement horizon and age are always important points of consideration when determining proper asset allocation. However, for individuals who are at least age 50, participating in a plan that includes a catch-up contribution feature can be an attractive choice, especially if the individual is behind in accumulating a retirement nest egg. If this is the case, choosing to participate in a 401(k) plan with a catch-up feature can help to add larger amounts to the nest egg each year.
Purpose of funding a retirement account: While retirement accounts are usually intended to finance one's retirement years, some individuals prefer to leave these accounts to their beneficiaries. If this is the case, consideration must be given as to whether the individual wants to leave tax-free assets to beneficiaries, and whether he or she wants to avoid taking required minimum distribution (RMD) amounts. Roth IRAs and Roth 401(k)s would allow the individual to pay the taxes owed on the retirement balances during his or her lifetime. For Roth IRAs, the RMD rules do not apply to the IRA owner, allowing a larger balance to be left to beneficiaries.

See: Update Your Beneficiaries.

Conclusion
For those who are eligible to fund multiple types of retirement accounts, choice is not an issue for those who have the money to fund them all. For those who can't, choosing which to fund can be challenging. In many instances, it boils down to whether the individual prefers to take the tax breaks on the back end with Roth accounts, or on the front end with Traditional accounts. The purpose of funding the account, such as retirement versus estate planning, is also an important factor. A competent retirement planning advisor can help those facing these issues to make practical choices.

More From Investopedia

The rest is here:
Which Retirement Plan Is Best?

As the baby boomers begin to enter the retirement years, the concept of retirement is being explored in a variety of films. Many movies have featured retirees going on new adventures and forming new relationships at a time we traditionally associate with slowing down. Check out Hollywood's take on retirement in these seven films.

[See The 10 Best Places to Retire in 2012.]

About Schmidt (2002). This movie begins just as Warren Schmidt (Jack Nicholson), an insurance company actuary, ticks off the final minutes of his career. Soon afterward his wife, who Schmidt was planning to travel with in retirement, dies. Schmidt then takes a trip to his daughter's wedding in a Winnebago and reflects on his life and future plans.

The Artist (2011). An older silent film star, George Valentin (Jean Dujardin), finds himself pushed out of the workforce earlier than planned as silent cinema is replaced by the talkies in this silent film. Meanwhile, a much younger women, Peppy Miller (Bérénice Bejo), who Valentin happens to be in love with, rises to success in the new medium.

The Bucket List (2007). Morgan Freeman and Jack Nicholson play two men who meet by sharing a hospital room while undergoing treatments for terminal cancer. They decide to go on an around-the-world vacation, during which they fulfill a wish list of things to do before they kick the bucket.

[See 7 Misconceptions About Retired Life.]

Gran Torino (2008). Retired auto worker and Korean War veteran Walt Kowalski (Clint Eastwood) finds himself growing increasingly alienated from and angry with his family and neighbors. Kowalski strikes up an unusual friendship with the Hmong immigrant family next door when their son, Thao, attempts to steal his 1972 Ford Gran Torino as initiation into a gang. And this retiree refuses to quietly fade away.

The Notebook (2004). Can true love last throughout retirement? This movie makes the case that it can as two retirees (James Garner and Gena Rowlands) in a nursing home relive the summer they met and their dramatic courtship.

Something's Gotta Give (2003). Jack Nicholson and Diane Keaton find love after age 50, but not before each has a fling with a younger partner, in this romantic comedy directed by Nancy Meyers.

[See 10 Important Ages for Retirement Planning.]

Up (2009). Retirement is the adventure of a lifetime in this animated Disney-Pixar film. Retired balloon salesman and widower Carl Fredicksen journeys to South America in a floating house with an 8-year-old wildnerness explorer and meets his childhood hero.

Twitter: @aiming2retire

Excerpt from:
7 Movies About Retirement Worth Watching

TORONTO, ONTARIO--(Marketwire -02/24/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 47:

Dedicate time to understand and plan how your estate will be distributed after death

Planning your estate determines who will inherit your wealth, what will be inherited and in what form (property, cash, stock certificates or other investments), when it will be inherited, and what taxes will be paid on it.

It is important to understand the three basic options available to you to distribute your assets:

1. Beneficiaries named in a will - Different assets can form part of your
estate and will be distributed in accordance with the instructions in
your will.
2. Direct beneficiary for certain accounts - You can name a direct
beneficiary for your Registered Retirement Savings Plans (RRSPs),
Registered Retirement Income Funds (RRIFs) and Tax Free Savings Account
(TFSA). This allows these assets to transfer to a beneficiary without
going through probate which, depending on the province you live in, can
save your estate thousands of dollars.
3. Joint rights of survivorship - You can hold certain assets, such as a
joint savings account or a home, with joint rights of survivorship. Upon
death, the assets become the property of the surviving owner, and again
no probate is required.

All three methods of distribution should work in harmony to achieve your desired wealth distribution.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Understand Your Estate Planning Options