Retirement: How to Achieve Your Financial Goals

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Retirement How to Achieve Your Financial
Goals
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Preparing for Retirement

• Discuss your options
• Prepare personal data record
• Obtain support and advice

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How to Live on Less

• Invest wisely
• Equities
• Reinvest
• First tap taxable accounts

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How to Live on Less

• Reduce housing costs
• Downsize
• Seek a lower cost of living
• Trim expenses now
• Be creative
• Reverse your mortgage

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How to Live on Less

• Lower leisure expenses
• Get a job
• Reduce healthcare costs
• Medicare
• Generic drugs

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Know Retirement Plan Options

• Defined benefit plan
• Specified monthly benefit
• Federally protected
• Defined contribution plan
• No specified benefit
• Value fluctuates

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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

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How Do Variable Annuities Work?

• Issued by insurance company
• Carefully review prospectus
• Compare benefits/costs
• Check investments

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How Do Variable Annuities Work?

• Characteristics of variable annuities
• Periodic payments
• Death benefit
• Tax-deferred
• Tax-free 1035 exchanges

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Where Will You Live?

• Will you move?
• Consider lifestyle questions
• Consider privacy issues

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Where Will You Live?

• Assisted-living facilities
• Primarily social
• Licensed or unlicensed
• Wide cost range
• Nursing homes
• Primarily medical care
• Expensive

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Long-Term Care Insurance

• Purchase before 60-years-old
• Consider benefit/elimination periods
• Consider costs and
• Check benefit payout rate

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Understanding Medicare

• Most people eligible at 65
• Two parts
• Hospital insurance
• Medical insurance
• Medicare Advantage
• Prescription drug benefit

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Understanding Medicare

• Medicare Part A
• Covers hospitalization
• Requires no premium at age 65
• Eligibility
• Receiving Social Security
• Or worked for government

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Understanding Medicare

• Medicare Part B
• Covers other medical costs
• Requires premium
• Medicare Part C

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Understanding Medicare

• Medicare Part D
• Requires premium
• Pays 75 of initial drug costs
• Has a gap
• Pays 95 over 5,100

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Understanding Medicare

• Some expenses not covered
• Physical exams
• Dental care
• Hearing aids
• Eye care
• Custodial care

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Understanding Medicare

• Medicare HMOs
• Other considerations
• Benefits and costs
• Doctors and hospitals
• Quality of care

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Plan Ahead for Health Care

• Living will
• Durable power of attorney
• Do Not Resuscitate order

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Handling Disposition of Estate

• Estate planning
• Minimizes tax consequences
• Needed if worth 1.5 million or more
• Ensures how assets are disposed

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Reducing Taxes on Your Estate

• Make annual gifts
• Shield property
• Use trusts
• Make charitable gifts
• Fund a life insurance trust

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Thank You!