Оглавление
Eric Tyson. Personal Finance After 50 For Dummies
Praise for Eric Tyson
More Bestselling For Dummies Titles by Eric Tyson
Personal Finance After 50 For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Personal Finance After 50 For Dummies Cheat Sheet” in the Search box. Table of Contents
List of Tables
List of Illustrations
Guide
Pages
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Understanding Personal Finance After 50
Looking Ahead to Your Future
Planning for the Longer Term
Identifying long-term planning issues
Choosing among an employer’s pension options
Leaving an employer and deciding what to do with your retirement account money
Determining whether you can afford to retire and how much you can safely spend per year
Deciding when to begin collecting Social Security
Considering a reverse mortgage
Contemplating additional medical insurance
Weighing the option to buy more or different life insurance
BE AWARE OF AND INVOLVED IN YOUR INVESTMENTS
Developing your estate plan
Taking personal responsibility for your financial future
Saving and planning sooner and smarter pays off
Eyeing Keys to Successful Retirement Planning
Saving drives wealth
Keeping your balance
Understanding that planning is a process
Protecting Your Employment Income and Your Health
Assessing Your Need for Life Insurance
Understanding the purpose of life insurance
Determining your life insurance need
Assessing your current life coverage
Employer-based life insurance
Social Security survivor’s benefits
Figuring out what type to buy
Term life insurance
Cash-value coverage
Choosing where to buy life insurance
Protecting Your Employment Income: Disability Insurance
Why most people lack disability insurance and why you need it
Identifying needed disability coverage
Shopping for disability coverage
FINDING A CAREER YOU LOVE
Investing In and Protecting Your Health
Take care of your ticker
Exercise (and sweat)!
Hydrate with good-quality H2O
Include fiber in your diet
Manage your stress
Get your calcium and vitamin D
Developing a Retirement Plan
Deciding When to Retire
WHAT FOCUS GROUPS SAY ABOUT PLANNING FOR RETIREMENT
Knowing How Much You Really Need for Retirement
Figuring out what portion of income you need
Grasping what the numbers mean
Eyeing the Components of Your Retirement Plan
Social Security retirement benefits
Looking at your estimated Social Security benefits
Assumptions: Discovering how your benefits are estimated
Pensions
Investments
Your home’s equity
IN GOOD HANDS: KNOWING YOUR PENSION IS PROTECTED
Setting Up a Couples Plan
Crunching the Numbers
Understanding assumptions and how they work
Making the numbers work
Dealing with excess money
Making Plans for Nonfinancial Matters
Personal connections
Personal health
Activities, hobbies, interests
Identifying Retirement Investments and Strategies
Defining Investments
Understanding risk
Eyeing your returns
Current income
THE 2000S WAKE-UP CALL ABOUT RISK
Appreciation
Considering how investments are susceptible to inflation
Being aware of tax consequences
Monitoring sensitivity to currency and economic issues
What You Need to Do Before You Select and Change Investments
Knowing your time horizon
Factoring some risk into your investment plan
Keeping the bigger picture in mind
Allocating your assets
Surveying Different Investments
Comparing lending investments to ownership investments
Looking into stocks
DON’T FALL INTO THE TRAP OF TIMING THE STOCK MARKET
Investing in mutual funds and ETFs
Comparing investments and risks
Managing Investment Portfolios
Funds of funds and target-date funds
Examining funds of funds
Understanding target-date funds
Index and exchange-traded funds
Assessing and changing your portfolio
Grasping Retirement Accounts and Their Rules
Eyeing the Characteristics of Retirement Accounts
Focusing on the tax benefits
Being aware of restrictions and penalties
Identifying the Different Types of Retirement Accounts
Employer-sponsored retirement accounts
Self-employed retirement savings plans
Individual Retirement Arrangements (IRAs)
ESTABLISHING AND TRANSFERRING RETIREMENT ACCOUNTS
Rolling Over Retirement Balances
Deciding what road to take
Choosing a custodian and rolling over your balance to an IRA
Choosing Beneficiaries for Your Retirement Accounts
Taking Required Minimum Distributions
Calculating your RMD for an IRA
Computing the RMD for other retirement plans
Making Money Decisions in Retirement
Managing Budgets and Expenses
Discussing Some Retirement Worries You May Have
Running out of money
Supporting others
Addressing your worries
Spending Your Nest Egg
Considering the 4 percent rule
Naming the factors affecting your use of retirement assets
How Spending Really Changes in Retirement
Managing Your Expenses
Bigger-picture issues
Taxes
Housing
Utilities and communication
Food
Transportation
Personal care and fashion
Travel and fun
Healthcare
Insurance
Children and grandchildren
Guiding Investments and Distributions in Retirement
Guiding Your Investments through Retirement
Estimating your investment income
Making the calculations
Determining whether to modify your investments to earn more income now
Rebalancing your investments
Understanding the benefits of rebalancing
Taking a look at a rebalancing example
Looking Closer at Annuities
Annuities: A retirement account and insurance combination
Contributing in your working years
KNOWING WHEN IT PAYS TO CONVERT A TRADITIONAL IRA TO A ROTH IRA
Annuitizing in your retirement years
Examining the newest annuity
Choosing Your Pension Options
Selecting between a lump sum or monthly payments
Taking stock of your situation
Considering key issues regarding your pension decision
Deciding among monthly payment options
Eyeing Withdrawal Strategies for Your Investment Accounts
Making Important Housing Decisions
Analyzing Moving
Considering the pros and cons of moving
Eyeing the options for where you can move
Option No. 1: Downsizing
Option No. 2: Looking at retirement communities
Option No. 3: Housing that’s near family and has healthcare
THE DOWNSIDES OF COMMUNITY ASSOCIATIONS
Tapping Your Home’s Equity: Reverse Mortgages
Defining terms and costs
Determining whether a reverse mortgage is right for you
Searching for more information on reverse mortgages
Looking at Tax Issues Regarding Your Housing Decisions
Being aware of capital gains exclusion rules
Converting your home to a rental: Yes or no?
Considering Your Long-Term Care Insurance Needs and Options
Understanding Long-Term Care
Naming the types of long-term care
Predicting who will need long-term care
Estimating how much long-term care will cost
Looking at the data with a discriminating eye
Using tools and strategies to calculate costs for LTC in your area
Planning to Pay for LTC
Considering Traditional LTC Insurance
Knowing the basic features of LTCI
Daily benefit
Waiting period
Benefit period
Inflation protection
Covered care and expenses
Checking out two more important LTCI factors
The insurer’s financial stability
The history of premium increases
Using Hybrid Insurance Products
Exploring annuities to finance LTC
Financing LTC with life insurance
Assessing the LTC hybrids
Reimbursement versus Indemnity Coverage
Financing LTC Yourself
Figuring out whether you can finance your own LTC
Deciding when to buy LTCI
Comparing tax-qualified and nonqualified policies
Opting for life insurance instead of LTCI
Taking advantage of the reverse mortgage
Evaluating Employer and Group Coverage
Combining LTCI and Self-Insurance
Dealing with Government Programs
Making Your Best Choices under Social Security
The Lowdown on Social Security
EYEING THE OTHER SOCIAL SECURITY BENEFITS
Determining When You’re Eligible for Benefits
Reviewing your earnings history
Defining when you can retire
Taking a Closer Look at Spouses’ and Survivor Benefits
Understanding the choices for spousal benefits
Choice No. 1: Lower-earning spouse retires first, takes own benefits
Choice No. 2: Higher-earning spouse begins benefits, boosts lower-earning spouse’s benefits
NO LONGER A CHOICE: CLAIM AND SUSPEND
Ensuring spouses are taken care of: Survivor’s benefits
Strategy No. 1: Delay retirement benefits
Strategy No. 2: Begin benefits twice
Identifying When You May Need to Receive Benefits
What are your cash flow needs?
Will waiting pay off?
What other income do you have?
Do you want to continue to work?
What are the potential income taxes on benefits?
What’s your life expectancy?
Noting How Working Reduces Benefits
Taking the penalty for exceeding the annual income limit
Determining the penalty on a monthly basis
The penalty isn’t always bad
Preserving Your Benefits
Deferring income
Using your corporation
Considering exempt income
FINDING ADDITIONAL INFORMATION
Relying on special income
Being Aware of Potential Income Taxes on Your Benefits
Understanding how modified adjusted gross income works
Reducing taxes on benefits
Strategies to reduce taxes on your benefits
Reducing your MAGI: Deduction strategies
Changing Your Mind: A Do-Over
Deciding whether you should take a do-over
Doing the do-over
Looking at What the Future Holds for Social Security
Getting the Most Out of Medicare
Starting Medicare: A Broad Overview of Enrollment Deadlines
Understanding Part A
Seeing who’s eligible and signing up for Part A
Defining Part A coverage
Hospital stays
Skilled nursing facilities
Home healthcare
Exploring Parts B and C
Scoping out Part B
Signing up for Part B
Paying for Part B
PREMIUMS
DEDUCTIBLE
COINSURANCE
Probing Part C: Medicare Advantage
Becoming familiar with the Part C plans
Joining or changing Advantage plans
Researching Part C plans
Qualifying for Prescription Drug Coverage with Part D
Examining Part D plans
Reviewing premiums and other costs
Looking at other terms
Comparing plans
Enrolling in a Part D plan
Eyeing a Medicare Supplement
Understanding Medigap policies
Standardizing Medigap policies
Choosing a Medigap policy
Obtaining quotes for Medigap insurance
Resolving Some Sticky Issues
Changing plans
Monitoring changes at work
Making a foreign move
The State Healthcare System Backup: Medicaid
Discovering What Medicaid Is
Considering Medicaid Eligibility
Establishing Functional Eligibility
Meeting Financial Requirements
Understanding income limits
Defining income
Retaining income
Understanding asset limits
ANNUITIES NO LONGER A CLEAR-CUT EXEMPT ASSET
Seeing how marriage can change your assets
Dealing with excess assets
Using gifts and trusts to change eligibility
GETTING TO THE BOTTOM OF THE LOOK-BACK RULE
BEING AWARE OF THE WAITING PERIOD
IDENTIFYING EXEMPT TRANSFERS
APPLYING FOR AN APPEAL
Preparing for estate recovery
Examining Planning Strategies
Spending down
Creating a life estate
Setting up trusts
Irrevocable trusts
Testamentary trusts
Supplemental needs trusts
Buying an immediate annuity
Going the spousal refusal route
Recognizing the downsides of Medicaid eligibility strategies
Using Both Medicare and Medicaid
Eyeing Reasons Not to Seek Medicaid
FINDING ADDITIONAL INFORMATION ABOUT MEDICAID
Estate Planning: It’s More than Just Dead People and Lawyers
The Basics on Estate Planning
Understanding Estate Planning
Studying Some Strategies Before Starting Your Estate Plan
Finish your plan no matter what
Keep track of your estate
Estimate cash flow
Don’t wait for the perfect plan
Carefully choose executors and trustees
Anticipate conflicts
Answering Key Questions to Gather Critical Information
Who’s in charge?
How much should I give now?
Should I apply controls and incentives?
Should heirs get equal shares?
Should I exclude someone?
How should my blended family be handled?
Should I leave only money?
Should my wealth stay in the family?
Knowing How Estate Taxes Work
Reviewing the estate tax
Considering state taxes
Finding Good, Affordable Advice
Doing it yourself
Using an expert: Yes or no?
Finding prospects
Selecting an expert
Eyeing Wills and Other Legal Documents
Creating Your Will
Pointing out some important details
Limiting specific-dollar bequests
Determining who pays taxes
Deciding who pays the debts
Avoiding multiple estate fees
Dividing personal property
Facing the limits of wills
Excluding family members
Avoiding things you can’t do with your will
Assigning a Financial Power of Attorney
Recognizing the importance of a POA
Choosing the right POA
Delegating Medical Decisions
Understanding living wills
Signing DNRs
Assigning a healthcare proxy or POA
Authorizing HIPAA
Combining documents
Passing Other Assets
Naming beneficiaries for your assets
Examining the special case of IRAs
Taking a look at the basics of IRA inheritances
Using your IRA to make charitable gifts
Filling out IRA custom beneficiary forms
Looking Closer at Probate
Avoiding probate: Yay or nay?
Considering joint tenancy
Making use of living trusts
The advantages to a living trust
The downsides to a living trust
Tackling the Federal Estate Tax When You Have Too Much Money
Understanding the Estate Tax
Examining how your estate tax is calculated
Decreasing your estate taxes
Tallying Your Assets
Making sure you don’t overlook certain factors
Assessing included assets
Reducing Your Estate
Considering strategies to lower your estate’s value
How much do I give?
When do I give it?
To whom do I give?
Maximizing tax-free gifts
Reviewing gift tax rules
Increasing the benefits of gifts
Taking Deductions
Looking at the marital deduction
Understanding portability of the lifetime exemption
Giving charitable gifts
Choosing Family Estate Strategies
Equalizing estates
Using the bypass trust
Taking advantage of marital deduction trusts
Putting the strategies together
Contemplating Life Insurance
Paying obligations with life insurance
Purchasing life insurance to enhance inheritances
Avoiding the Tax on Gifts to Grandkids: The GSTT
Focusing on Estate Taxes and the Many Types of Trusts
Identifying the Cast of Characters
Naming the Types of Trusts
Looking at when trusts take effect
Revoking or retaining rights
Revocable trusts
Irrevocable trusts
Determining how income is distributed
Income trusts
Total return trusts
Addressing the trustee’s powers
Discretionary trusts
Nondiscretionary trusts
Using Trusts in Estate Planning
Donating to charity with charitable trusts
Charitable remainder trusts
Charitable lead trusts
Opting for retained income trusts
Qualified personal residence trusts
Grantor retained income and annuity trusts
Taking care of special needs with SNTs
Spreading the wealth through dynasty trusts
Creating life insurance trusts
The Part of Tens
Ten Common Retirement and Estate Planning Mistakes
Not Having at Least a Basic Financial Plan
Procrastinating about Estate Planning
Underestimating Life Expectancy
Miscalculating Inflation
Believing You’ll Retire When You Expected To
Ignoring Nonfinancial Planning
Failing to Coordinate with Your Spouse
Expecting to Age in Place
Thinking Most Medical Expenses Will Be Covered
Missing the Initial Enrollment for Medicare Plans
Ten Things to Know about Working in Retirement
Some Work Is Good for You
The Social Security (Tax) Impact Can Be Huge
Number Crunching Can Show You How Different Scenarios Work
Life Is Short and You Owe It to Yourself to Do What You Love
Investing in Education Can Boost Your Employment Value
Some Employers Are More User-Friendly for Older Workers
Taking Some Employment Risk Is Important
Starting/Buying a Small Business May Be a Rewarding Option
Your Spouse May Not Want What You Want
Volunteering Makes You Happy and Benefits Your Community
Ten (or So) Tips to Know about Caring for Your Aging Parents
Leverage Off Others’ Experiences
Ask for Professional Help
Invest in Their Health
Get Your Parents’ Affairs in Order
Examine Housing and Medical Care Options
Use Caregiver Agreements
Separate Living Spaces if Parents Are Going to Move In
Take Care of Your Family
Take Care of Yourself
Index. Numerics
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Z
About the Authors
Authors’ Acknowledgments
WILEY END USER LICENSE AGREEMENT
