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Utilizing and Transferring Wealth

Maintaining Direction

Retirement is one of the most significant financial transitions you will face in your lifetime. The Mechanics Bank can help you understand and manage the financial and tax implications of this transition. For many of our customers, we begin the process by listing your retirement goals, analyzing your existing investment strategy, projecting your retirement income and reviewing the assets you wish to pass on to your heirs.

Planning for a comfortable retirement

Concern about having enough money for the rest of one’s life is well founded. Increases in expected longevity coupled with rising health care costs and uncertainties about other expenses are cause for concern.

As part of the retirement planning process, we can evaluate your employer-provided compensation as well as any retirement benefit plans. We can then recommend strategies that fit your income tax, investment, estate and cash flow requirements. To do that, we would prepare a lifestyle analysis that incorporates your sources of income, anticipated spending needs and tax considerations. A critical component of the evaluation process includes help in determining elections for your retirement plans, including lump sum payouts vs. annuities and joint survivor vs. single-life distribution arrangements. Finally, we'll help ensure that your beneficiary designations are coordinated with your estate planning documents.

Planning to transfer wealth to your heirs

Whatever your level of wealth, you'll want to execute basic estate planning documents, in the form of a will or a revocable living trust. However, if you've accumulated substantial wealth, you'll probably want a more far-reaching plan to arrange for the transfer of assets to your heirs or other parties

Planning the disposition of a legacy often involves structuring it in such a way as to protect heirs from the significant tax burden levied on personal estates. You may also be concerned about the stewardship of your assets, or have philanthropic goals you wish to have fulfilled upon your death. If your wealth involves a business, there may be complex issues surrounding continuity and liquidation.

Estate plans or wealth transfer strategies can range from simple to cutting-edge. As families evolve and tax laws change, you should review your plan to ensure that your ultimate wishes continue to be reflected in the documents. While The Mechanics Bank doesn't draft legal documents, we work closely with your attorneys and accountants to ensure the documents are timely.

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