RETIREMENT AND ESTATE PLANNING

Life Situation	Financial Data
Pam, 48 Josh, 50 Children ages 21, 19 and 16	Monthly income $6,700 Assets $242,500 Living expenses $5,600 Liabilities $69,100
With two children in college, the brocks once again find their life situation changing. Compared to five years ago, their total assets have declined due to college expenses. The Brocks oldest child will graduate next year, but the youngest will enter college in a couple of years. The drain on the familys finances will continue. While the familys finances are adequate, both Pam and Josh are beginning to think more about retirement. Over the years, Josh has taken advantage of different career opportunities. Today his annual salary is higher than ever. However, his employment changes have resulted in a smaller pension fund than would have been available had he remained with the same organization. The current value of his pension plan is just over $115,000. The investment program he and pam started almost 10 years ago is growing and is now worth about $62,000. But they still worry whether they will have enough money to finance their retirement when Josh retires in 15 years. Pam and Josh should also be concerned with various estate planning actions. They have talked about a will and investigated the benefits of several types of trusts. However, they have not taken any specific actions.

Question

Since Pam is 48 and Josh is 50, what should be their major priorities as they continue planning for their investments and financial future?