Post on 29-Dec-2015
Retirement: How to Achieve Your Financial Goals
Preparing for Retirement
• Discuss your options• Prepare personal data record• Obtain support and advice
How to Live on Less
• Invest wiselyo Equitieso Reinvest
• First tap taxable accounts
How to Live on Less
• Reduce housing costso Downsizeo Seek a lower cost of living
• Trim expenses now• Be creative• Reverse your mortgage
How to Live on Less
• Lower leisure expenses• Get a job• Reduce healthcare costs
o Medicareo Generic drugs
Know Retirement Plan Options
• Defined benefit plano Specified monthly benefito Federally protected
• Defined contribution plano No specified benefito Value fluctuates
Identify Retirement Plan Options
• Simplified Employee Pension Plan• Profit-Sharing plan• 401(k) Plan• Employee Stock Ownership Plan• Money Purchase Pension Plan• Cash Balance Plan
How Do Variable Annuities Work?
• Issued by insurance companyo Carefully review prospectuso Compare benefits/costso Check investments
How Do Variable Annuities Work?
• Characteristics of variable annuitieso Periodic paymentso Death benefito Tax-deferred
• Tax-free 1035 exchanges
Where Will You Live?
• Will you move?• Consider lifestyle questions• Consider privacy issues
Where Will You Live?
• Assisted-living facilitieso Primarily socialo Licensed or unlicensedo Wide cost range
• Nursing homeso Primarily medical careo Expensive
Long-Term Care Insurance
• Purchase before 60-years-old• Consider benefit/elimination periods• Consider costs and • Check benefit payout rate
Understanding Medicare
• Most people eligible at 65• Two parts
o Hospital insuranceo Medical insurance
• Medicare Advantage• Prescription drug benefit
Understanding Medicare
• Medicare Part Ao Covers hospitalizationo Requires no premium at age 65o Eligibility
Receiving Social Security Or worked for government
Understanding Medicare
• Medicare Part Bo Covers other medical costso Requires premium
• Medicare Part C
Understanding Medicare
• Medicare Part Do Requires premiumo Pays 75% of initial drug costso Has a gapo Pays 95% over $5,100
Understanding Medicare
• Some expenses not coveredo Physical examso Dental careo Hearing aidso Eye careo Custodial care
Understanding Medicare
• Medicare HMOs• Other considerations
o Benefits and costso Doctors and hospitalso Quality of care
Plan Ahead for Health Care
• Living will• Durable power of attorney• Do Not Resuscitate order
Handling Disposition of Estate
• Estate planningo Minimizes tax consequenceso Needed if worth $1.5 million or
moreo Ensures how assets are disposed
Reducing Taxes on Your Estate
• Make annual gifts• Shield property• Use trusts• Make charitable gifts• Fund a life insurance trust
Thank You!