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!