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Discuss retirement options, prepare personal data record, obtain advice, invest wisely, reduce expenses, understand retirement plans, learn about variable annuities, decide on living arrangements, consider long-term care insurance & Medicare, plan for healthcare, handle estate disposition to minimize taxes. 8 Relevant
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Preparing for Retirement • Discuss your options • Prepare personal data record • Obtain support and advice
How to Live on Less • Invest wisely • Equities • Reinvest • First tap taxable accounts
How to Live on Less • Reduce housing costs • Downsize • 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 • Medicare • Generic drugs
Know Retirement Plan Options • Defined benefit plan • Specified monthly benefit • Federally protected • Defined contribution plan • No specified benefit • 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 company • Carefully review prospectus • Compare benefits/costs • Check investments
How Do Variable Annuities Work? • Characteristics of variable annuities • Periodic payments • Death benefit • 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 facilities • Primarily social • Licensed or unlicensed • Wide cost range • Nursing homes • Primarily medical care • 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 • Hospital insurance • Medical insurance • Medicare Advantage • Prescription drug benefit
Understanding Medicare • Medicare Part A • Covers hospitalization • Requires no premium at age 65 • Eligibility • Receiving Social Security • Or worked for government
Understanding Medicare • Medicare Part B • Covers other medical costs • Requires premium • Medicare Part C
Understanding Medicare • Medicare Part D • Requires premium • Pays 75% of initial drug costs • Has a gap • Pays 95% over $5,100
Understanding Medicare • Some expenses not covered • Physical exams • Dental care • Hearing aids • Eye care • Custodial care
Understanding Medicare • Medicare HMOs • Other considerations • Benefits and costs • Doctors and hospitals • Quality of care
Plan Ahead for Health Care • Living will • Durable power of attorney • Do Not Resuscitate order
Handling Disposition of Estate • Estate planning • Minimizes tax consequences • Needed if worth $1.5 million or more • 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