Finances After 55

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Sylvia Lim. Finances After 55

FINANCES AFTER 55: Make the Transition from Earning a Living to Retirement Living

1. Why Plan?

Statistics

American demographics

Canadian demographics

Caregiver demographics

The Fear Factor

The Current Model of Retirement

Changing Needs, Changing Plan

Active retirement

Semi-active retirement

Passive retirement

Financial Opportunities and Choices

2. You Can Do It: Goal Setting

Issues to Consider

Active retirement years

Semi-active retirement years

Passive retirement years

Retirement Goal Setting

Sample 1: Retirement Goal Planning

3. Calculating What You Are Worth

Knowing Your Dollar Value

Running the Numbers

Step 1: Prepare yourself

Step 2: Sort out the paperwork

Step 3: Date the Net Worth Worksheet

Step 4: Fill in the asset values

Step 5: Fill in the liability values

Step 6: Fill in the other items/insurance policies

Step 7: Total up your assets

Step 8: Total up your liabilities

Step 9: Calculate your net worth

Step 10: File your paperwork

Sample 2: Net Worth Worksheet

4. Assessing Your Investments

ABC’s of Investing: Common Types of Investments. Safety investments

Income investments

Growth investments

Mutual funds

Real property investment

Being Wise

The Magic of Compounding

Chart 1: Savings Chart Summary Guide

What Will Your Investments Produce for You?

Step 1: Prepare yourself

Step 2: Date the Income-Producing Investments Worksheet

Step 3: Transfer information from your Net Worth Worksheet

Step 4: Fill in the Income-Producing Investment items

Step 5: Estimate the income for each investment

Step 6: Estimate other income

Step 7: Total all sections on page 2 and record the prepared date on the worksheet

Step 8: Transfer the investments and inflow totals

Step 9: File your paperwork

Sample 3: Income-Producing Investments

5. Show Me the Money

From Where Will the Money Flow?

Running the Numbers

Sources of Cash Inflow

Company pensions

Qualified or registered retirement accounts

International social security agreement pensions

Social Security benefits (US)

Veterans benefit payments (US)

Canada Pension Plan (CPP) payments (Canada)

Old Age Security (OAS) payments (Canada)

Veteran’s benefits (Canada)

Other Income-Generating Options

Returning to work part-time

Home-based business income

Rental income from your home

An example

Sample 4: Cash Inflow Worksheet (For active & semi-active retirees)

Sample 5: Cash Inflow Worksheet (For passive retirees)

6. Yearly Retirement Spending Budget

Your Expenses

Insurance

Life insurance

Disability insurance

Critical illness insurance

Long-term care insurance

Health insurance

Your Budget and Your Choices

Budgeting Downward

Sample 6: Yearly Spending Budget (For active retirees)

Sample 7: Yearly Spending Budget (For passive retirees)

7. Reading the Crystal Ball

Here’s How You Begin …

8. Using Your Home to Finance Your Retirement

Downsizing Your Home

Sell and Rent

Reverse Mortgage (US)

Reverse Mortgage (Canada)

Home Equity Line of Credit (HELOC)

9. Housing Choices

Housing Options for Active Retirees

Option 1: Same house? Different house? Too much house?

Option 2: Moving in with your grown child and his or her family

Housing Options for Semi-Active Retirees

Option 3: Assisted home care

Option 4: Independent-living retirement homes

Housing Options for Passive Retirees. Option 5: Assisted-living retirement homes

Option 6: Extended-care or long-term care homes

10. Estate Planning

Appendix 1: Free Money and Other Saving Tips

For Both Younger and Older Retirees

Discounts. AARP discounts

CARP discounts

Seniors’ discounts

Free

Free dental care

Free health care

Free prescription drugs from pharmaceutical companies

Prescription drug discounts. Medicare drug discount cards (up to $30 per year)

Together Rx (free)

Mail-order pharmacies

Prescription-drug assistance programs

Veterans Affairs. Veterans Affairs Health Benefits and Services (US)

Veterans Affairs Canada

Choice of hospitals

Other Health Care Saving Tips

For All Retirees

General

Groceries and sundries

Banking and investing

Travel and vacations

Appendix 2: Living Well

Keep yourself occupied

Make a “to do” list

Eat well

Butt out

Exercise

Connect with people

Breathe deeply

Get annual physical exams

Own a pet

Stay informed

Pursue personal growth

Have a safety network

Be financially sound

Simplify your life

Appendix 3: Home Sweet; Home Safe

Bathrooms

Kitchen

Bedroom

Around the Home

When away on Vacation

Other Securities/Cautions

Resources

US Resources. AAA (American Automobile Association)

AARP (American Association of Retired Persons)

Administration on Aging (AOA)

Alzheimer’s Disease Education & Referral Center (ADEAR Center)

American Medical Association

BenefitsCheckUp®

Centers for Medicare and Medicaid Services

Corporation for National and Community Service

Cost of living comparison – Sperling’s BestPlaces

Eldercare Locator

Elderhostel

Elderweb

Internal Revenue Agency (IRS)

Joint Commission on Accreditation of Healthcare Organizations (JCAHO)

Meals on Wheels Association of America

Medicare

National Academy of Elder Law Attorneys

National Council on the Aging (NCOA)

Retirement Living Information Center

Senior Community Service Employment Program (SCSEP)

US Department of Veterans Affairs

US Department of Housing and Urban Development (HUD)

US Social Security Administration

Utah State University’s Assistive Technology Program

Wheelers RV Resort & Campground Guide

Canadian Resources. CAA (Canadian Automobile Association)

CARP (Canada’s Association for the Fifty-plus)

Canada Mortgage & Housing Corporation (CMHC)

Canadian Association for Community Care (CACC)

Canadian Snowbird Association

Canada Revenue Agency (CRA)

Canadian Home Income Plan (CHIP)

How to Care

Health Canada

Seniors Canada Online

Social Development Canada (SDC)

Veterans Affairs Canada

Other Reading from Self-Counsel Press

Bonus Files

About the Author

Notice to Readers

Self-Counsel Press thanks you for purchasing this ebook

Contents

Отрывок из книги

Whether you’re retiring solo or as part of a couple, planning is the key to a successful retirement, and it’s never too late to start your planning. You may be 16 years away from retirement, or only 6 years, or maybe even already 6 months into your post-working life, and yet it’s still possible for you to benefit from a plan.

The best candidate for the job of creating your plan is you, as you have your own best interests at heart. And, after all, you have the rest of your life to look after, and no one will take better care of your retirement finances than you will — provided you know what you’re doing.

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Due to our aging population, a revolution is happening. A new model of retirement is emerging for the baby-boom generation. Retirement today can be as flexible and different from the past as you want it to be.

There’s no doubt that the key to ensuring you have choice in retirement is financial security, and to achieve financial security, you must stay on top of your financial plan. The main objective of retirement planning is the preservation of your standard of living and the minimization of your chances of running out of money. You may also have other objectives, such as pursuing a hobby or interest, planning for long-term care in your advanced years, and preserving your capital to leave to your heirs.

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