CHAPTER 5
Retirement Planning: Living Your Dream
How Much Is Enough?

As you're developing your estate plan, it is vital that you determine how large an estate is necessary to provide for your lifestyle income needs during your lifetime. When the answer to that question indicates a shortfall, you will need to develop a plan for the best way to accomplish this objective. It may involve setting up a retirement plan or other investment program. Some people will find that they have accumulated significantly more assets than they will need to meet all of their financial objectives and retirement income needs. These individuals can begin focusing on wealth transfer strategies during their lifetime instead of waiting until their death. You should assume that until you know whether you have enough assets, you won't be able to implement a truly effective estate plan. In this chapter, we will help you determine the size of the investment estate that you will need to accumulate in order to provide for your retirement income needs.

Your Retirement Requirements

Let's go through a step-by-step process to determine how much additional capital you need to accumulate for a worry-free retirement. Even if you are certain you have enough money for your retirement, you should still go through this process. By calculating your retirement needs, any excess capital can then be used as part of a wealth transfer strategy.

Determining how much capital you will need at retirement is vital to your estate plan. It is an intricate process involving many complex calculations and, ideally, should be done with the assistance of a professional financial adviser. As a starting point, we will provide two alternative tools you can use to begin to get a feel for the size of the job ahead of you. There are many retirement planning calculators available through the Internet. You will find a user-friendly site at the Resource Center at www.welchgroup.com; click on “Links,” then “Retirement Planning Calculator.” For those of you who prefer to do a manual calculation, we have provided an eight-step process to help you determine your retirement needs. (Readers who have already retired may skip Steps 2 and 6 through 8.)

Step 1: Define Your Assumptions

A word of caution: Many of your assumptions will be little more than educated guesses. Many of these guesses will be wrong. An incorrect assumption can lead to significant errors in the final result. The best solution here is to review your assumptions and expected outcomes often, at least annually. This review and refinement process will lead to much better results.

ASSUMPTION 1: AGE AT WHICH YOU PLAN TO RETIRE

Determining at what age you would like to retire is fairly easy for most people. We find that most people want the option of being able to quit many years before the typical retirement age of 65. What they are really searching for is financial choice in their life. If their present job becomes too much of a hassle, they want the option of being able, financially speaking, to do something different. The “something different” might be a job that pays a lot less.

ASSUMPTION 2: INCOME NEEDED AT RETIREMENT

Determining how much income is needed at the time of retirement is a more difficult assumption to make. One rule of thumb is to assume that you will need 80 percent of your preretirement income. However, this rule of thumb is not applicable in many individual circumstances. The best way to estimate your future income need is to review current spending patterns and then visualize how expenses will be different at retirement. You will find that many of your current expenses will dramatically decrease or disappear at retirement, while other expenses will increase. For example, the money you spend on children should decrease significantly (does it ever completely go away?). Hopefully, your home mortgage will be fully paid off. Other expenses, such as medical insurance and travel, may be much higher than today. To get a clearer picture, use Worksheet 5.1 to compare your current expenses with estimated expenses at retirement. These retirement expenses should be figured as if you were retiring today. You will adjust the results for inflation later. All expense estimates should be figured on an annual basis. If you'd prefer a downloadable/printable form, visit the Resource Center at www.welchgroup.com; click on “Links,” then “Budget—Retirement Cash Management.”

WORKSHEET 5.1 Retirement Income Worksheet

Estimated
Current
Expenses		 Retirement
Expenses
(Today's $)		 Increasing Expense?
Home:
Mortgage or rent $ $ Yes No
Real estate taxes $ $ Yes No
Maintenance/Repairs $ $ Yes No
Utilities:
Electricity/Gas/Water $ $ Yes No
Phone (home and mobile) $ $ Yes No
Television and Internet $ $ Yes No
Security system $ $ Yes No
Insurance:
Life/Long-term care/Disability $ $ Yes No
Health and dental insurance $ $ Yes No
Homeowners/Automobile/Liability $ $ Yes No
Discretionary:
Groceries $ $ Yes No
Restaurants $ $ Yes No
Doctor/Dentist/Prescriptions $ $ Yes No
Children (school/activities) $ $ Yes No
Clothing and accessories $ $ Yes No
Auto gasoline $ $ Yes No
Auto repairs and maintenance $ $ Yes No
Laundry/Dry cleaning $ $ Yes No
Personal care $ $ Yes No
Entertainment $ $ Yes No
Charity/Gifts $ $ Yes No
Pets $ $ Yes No
Other $ $ Yes No
Debt Payments:
Auto loans $ $ Yes No
Personal loans $ $ Yes No
Income taxes $ $ Yes No
Other $ $ Yes No
Total $ $ Yes No

ASSUMPTION 3: PRERETIREMENT RATE OF RETURN

Consider what average rate of return you expect to earn on your investments before you retire. For qualified retirement plan accounts, individual retirement accounts (IRAs), tax-deferred annuities, and life insurance policies, the rate you earn will be your gross rate of return. For personal investment accounts, you are looking for the net rate of return after taxes. As a historical guideline for rate of return, you can expect equity-oriented investments (stocks, real estate) to earn 8 to 10 percent over time, while fixed-income-oriented investments (bonds, certificates of deposit [CDs], money market) to earn 3 to 5 percent over time.

ASSUMPTION 4: POSTRETIREMENT RATE OF RETURN

Many people manage their investments more aggressively prior to retirement. The assumption is that you can afford to be more aggressive when you still have earned income and are continuing to invest new money each month or year, and you are reinvesting all your interest, dividends, and capital gains. Once you retire and start drawing income from your investments, you must take greater care to protect your principal. This scenario is discussed in Chapter 4.

ASSUMPTION 5: ESTIMATED INFLATION RATE

We typically use 2 to 3 percent as the estimated inflation rate. Other advisers sometimes use rates as high as 6 percent. Inflation rates over the past 75 years have averaged 3.1 percent. An independent study has concluded that the way our government calculates the Consumer Price Index (CPI) overstates the rate of inflation by as much as 1 percent. We will leave it to you to decide what inflation rate is appropriate for your case facts.

Step 2: Determine Your Future Income Need

(If you are already retired, you may skip this step.) In Step 1, you estimated what your retirement income needs would be in terms of today's dollars. Now you need to convert that income into future dollars based on the assumed inflation rate (assumption 5). To determine the inflation factor, go to Table 5.1. Across the top of the page, identify the inflation rate you chose in Step 1. Moving down the left margin, identify the number that corresponds with the number of years until you intend to retire. The point where the two numbers intersect is your inflation multiplier. For example, if you choose an inflation rate of 3 percent and you have 20 years until retirement, your inflation multiplier is 1.81. Having identified your inflation multiplier, you should now multiply it by your expected retirement income need, which you determined in Step 1. The result is the income you will need the first year you retire. Since inflation will continue to erode the purchasing power of your income, we will have to account for continuing inflation in later calculations.

TABLE 5.1 Inflation Multiplier Chart

Years until
Retirement		 Estimated Inflation Rate
1% 2% 3% 4% 5% 6% 7% 8%
 1 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08
 2 1.02 1.04 1.06 1.08 1.10 1.12 1.14 1.17
 3 1.03 1.06 1.09 1.12 1.16 1.19 1.23 1.26
 4 1.04 1.08 1.13 1.17 1.22 1.26 1.31 1.36
 5 1.05 1.10 1.16 1.22 1.28 1.34 1.40 1.47
 6 1.06 1.13 1.19 1.27 1.34 1.42 1.50 1.59
 7 1.07 1.15 1.23 1.32 1.41 1.50 1.61 1.71
 8 1.08 1.17 1.27 1.37 1.48 1.59 1.72 1.85
 9 1.09 1.20 1.30 1.42 1.55 1.69 1.84 2.00
10 1.10 1.22 1.34 1.48 1.63 1.79 1.97 2.16
11 1.12 1.24 1.38 1.54 1.71 1.90 2.10 2.33
12 1.13 1.27 1.43 1.60 1.80 2.01 2.25 2.52
13 1.14 1.29 1.47 1.67 1.89 2.13 2.41 2.72
14 1.15 1.32 1.51 1.73 1.98 2.26 2.58 2.94
15 1.16 1.35 1.56 1.80 2.08 2.40 2.76 3.17
16 1.17 1.37 1.60 1.87 2.18 2.54 2.95 3.43
17 1.18 1.40 1.65 1.95 2.29 2.69 3.16 3.70
18 1.20 1.43 1.70 2.03 2.41 2.85 3.38 4.00
19 1.21 1.46 1.75 2.11 2.53 3.03 3.62 4.32
20 1.22 1.49 1.81 2.19 2.65 3.21 3.87 4.66
21 1.23 1.52 1.86 2.28 2.79 3.40 4.14 5.03
22 1.24 1.55 1.92 2.37 2.93 3.60 4.43 5.44
23 1.26 1.58 1.97 2.46 3.07 3.82 4.74 5.87
24 1.27 1.61 2.03 2.56 3.23 4.05 5.07 6.34
25 1.28 1.64 2.09 2.67 3.39 4.29 5.43 6.85
26 1.30 1.67 2.16 2.77 3.56 4.55 5.81 7.40
27 1.31 1.71 2.22 2.88 3.73 4.82 6.21 7.99
28 1.32 1.74 2.29 3.00 3.92 5.11 6.65 8.63
29 1.33 1.78 2.36 3.12 4.12 5.42 7.11 9.32
30 1.35 1.81 2.43 3.24 4.32 5.74 7.61 10.06

Step 3: Subtract Your Sources of Retirement Income

In Step 2 you determined the total income you would need when you retire. You will need to subtract any income sources you expect to receive at retirement. One source of income will be Social Security. If you have not yet retired, use Table 5.2 to estimate how much Social Security income you will receive.

TABLE 5.2 Social Security Benefits Estimate (2014 estimate)

Assume that worker earnings are at or over maximum
Social Security wage base.
Your Age Today 62 66
Your initial annual benefit $23,778 $31,704

Note: To receive an estimate of your future benefits, contact the Social Security Administration at 1-800-772-1213 or visit www.ssa.gov.

Another possible source of income is your company's pension plan. If your company has one, contact your benefits office or plan trustee and ask for the formula for calculating benefits. Often, the formula is based on years of service and average wages during your last few years (often your last five years). While Social Security is indexed for inflation, pension benefits often are not. You will need to take this into account in your final calculations for retirement capital needed. Any other sources of income should be deducted as well. The results of these adjustments will be the income that you need to draw from your investment accounts (including personal investment accounts, IRAs, company 401(k)s, etc.).

For example, let's say that in Step 2 you determined that your annual retirement income needs will be $120,000 at age 65. You estimate that your Social Security benefit for you and your spouse will be $38,000 per year and that your company pension will pay you $29,000 per year. Your results would look as follows:

Retirement income need $120,000
Social Security benefit –38,000
Pension benefit –29,000
Income needed from your investments $53,000

Step 4: Determine Your Portfolio Withdrawal Rate

As you remember from Chapter 4, the withdrawal rate (also referred to as the withdrawal factor) represents the percentage of dollars that you are withdrawing from your total investment portfolio over a calendar year. You want to ensure that your withdrawal rate is not too high, or you will run the risk of depleting your portfolio over time. Based on our experience, an appropriate withdrawal rate scale is as follows:

  • Conservative: 0.04 (4 percent)
  • Moderate: 0.05 (5 percent)
  • Aggressive: 0.06 (6 percent)

For a more complete explanation of the withdrawal rate, review Chapter 4.

Step 5: Determine Your Investment Account Target

You are now ready to calculate how large an investment account you must accumulate to meet your goals. Take your answer from Step 3 and divide it by the withdrawal rate you chose in Step 4. Your answer indicates how much additional capital you must accumulate for your retirement. If you are already retired, your answer indicates either that you have more investments than you need or that you don't have enough. If you have more than you need, congratulations! You may skip ahead to Chapter 6. If you don't have enough, review Chapter 4 for strategies you can use to improve your results.

Continuing with our previous example, we have determined that the income needed is $53,000. Let's assume that you have decided on a “moderate” withdrawal factor of 0.05 (5 percent). By dividing $53,000 by 0.05, you come up with $1,060,000, which is the amount of capital necessary to produce a lifetime inflation-adjusted income of $53,000 per year at your retirement. In our example, each year you will withdraw 5 percent of your account balance (a withdrawal factor of 0.05). Since the account is expected to earn between 6 percent and 8 percent over time (assuming a minimum of 60 percent allocation to stocks), your account balance should be growing over time.

Short-term volatility (bear markets) should be expected. The best way to deal with it is to use all portfolio income plus the principal (as needed) from the safety net (CDs, bonds, and money market) portion of your portfolio while you wait for the growth (stocks and stock mutual funds) portion of your portfolio to recover. Once equities rebound, you should then take enough profits to replenish your safety net (fixed income) and bring your portfolio back into balance (see Chapter 4).

Step 6: Determine the Future Value of Your Current Investments

(If you have already retired, you may skip Steps 6 through 8.) You know how much money you must accumulate before you retire. Now you will need to determine how far your current investments will go toward meeting your goal. This requires that you estimate the future value of your current investments. You have two choices here. You can assign an average rate of return for all current investments, or you can use a different rate of return for each type of investment. For example, if you have $425,000 in personal mutual funds, $60,000 in CDs, $235,000 in your company 401(k) plan, and $22,000 in your whole life insurance policy (see Table 5.3), you can either assume an aggregate rate of return (averaging the rate of return for all your investments) or use a different rate of return for each asset. With assets that are this dissimilar, using different rates of return would be preferable but also would require more work. At this stage, concern yourself not with current and future contributions but only with current balances.

TABLE 5.3 Current Investment Assets

$425,000 Personal mutual funds
$60,000 CD
$235,000 401(k)
$22,000 Cash value whole life policy
$742,000 Total investments

Using Table 5.4, choose the rate of return that you expect to earn on your investments (top row of table). Then, looking down the leftmost column of the table, choose the number that represents the number of years until you retire. The point where these two numbers intersect represents your growth factor. Multiply this factor by the current value of your investment account(s). Your answer represents the expected value of your investment account(s) the day you retire. Unless you averaged the rate of return for all your investments at once, you will need to repeat this process for each investment. If the earnings rate you have assumed is not represented on this form, you can interpolate your growth factor. For example, if you chose a 9.5 percent earnings rate with 20 years until retirement, your growth factor would be the midpoint between the growth factor for 9 percent (5.60) and 10 percent (6.73). To find the midpoint, add the two numbers together, and then divide the sum (12.33) by 2. The result, 6.165, can be rounded up to 6.17, which is the growth factor for a 9.5 percent earnings rate.

TABLE 5.4 Growth Factor Table

Years until
Retirement		 Expected Return on Investment
4% 5% 6% 7% 8% 9% 10%
 1 1.04 1.05 1.06 1.07 1.08 1.09 1.10
 2 1.08 1.10 1.12 1.14 1.17 1.19 1.21
 3 1.12 1.16 1.19 1.23 1.26 1.30 1.33
 4 1.17 1.22 1.26 1.31 1.36 1.41 1.46
 5 1.22 1.28 1.34 1.40 1.47 1.54 1.61
 6 1.27 1.34 1.42 1.50 1.59 1.68 1.77
 7 1.32 1.41 1.50 1.61 1.71 1.83 1.95
 8 1.37 1.48 1.59 1.72 1.85 1.99 2.14
 9 1.42 1.55 1.69 1.84 2.00 2.17 2.36
10 1.48 1.63 1.79 1.97 2.16 2.37 2.59
11 1.54 1.71 1.90 2.10 2.33 2.58 2.85
12 1.60 1.80 2.01 2.25 2.52 2.81 3.14
13 1.67 1.89 2.13 2.41 2.72 3.07 3.45
14 1.73 1.98 2.26 2.58 2.94 3.34 3.80
15 1.80 2.08 2.40 2.76 3.17 3.64 4.18
16 1.87 2.18 2.54 2.95 3.43 3.97 4.59
17 1.95 2.29 2.69 3.16 3.70 4.33 5.05
18 2.03 2.41 2.85 3.38 4.00 4.72 5.56
19 2.11 2.53 3.03 3.62 4.32 5.14 6.12
20 2.19 2.65 3.21 3.87 4.66 5.60 6.73
21 2.28 2.79 3.40 4.14 5.03 6.11 7.40
22 2.37 2.93 3.60 4.43 5.44 6.66 8.14
23 2.46 3.07 3.82 4.74 5.87 7.26 8.95
24 2.56 3.23 4.05 5.07 6.34 7.91 9.85
25 2.67 3.39 4.29 5.43 6.85 8.62 10.83
26 2.77 3.56 4.55 5.81 7.40 9.40 11.92
27 2.88 3.73 4.82 6.21 7.99 10.25 13.11
28 3.00 3.92 5.11 6.65 8.63 11.17 14.42
29 3.12 4.12 5.42 7.11 9.32 12.17 15.86
30 3.24 4.32 5.74 7.61 10.06 13.27 17.45

For another example, assume you plan to retire in 20 years and your current investments are those shown in Table 5.3. One of your investments is a $60,000 CD. Since this is a taxable investment, you need to determine your rate of return after taxes. We have assumed a 28 percent tax bracket for this example, resulting in a net rate of return of 5 percent. By going to Table 5.4 and finding the intersection of 5 percent and 20 years, you will find that the growth factor is 2.65. Note that if you planned to pay all the taxes on your CD with other funds (i.e., you plan to reinvest your interest), you would use the before tax rate of return that corresponds with the growth factor in Table 5.4.

Step 7: Determine Your Retirement Account Surplus or Deficit

This step involves nothing more than simple arithmetic. Subtract your answer in Step 6 (the future value of your current investments) from your answer in Step 5 (your investment account target). If the result is a negative number, congratulations! You will have more money than necessary to meet your retirement income needs (a surplus). If your answer is a positive number, you have a deficit and must continue investing in order to meet your goal. How much will you need to invest? Continue with Steps 8 and 9 to find the answer.

Step 8: Determine Your Monthly Investment Requirements

If your calculations thus far indicate that you will not have accumulated enough money by retirement, you will need to determine how much you need to invest each month in order to meet your goal. If you are not maxing out contributions to your 401(k), traditional IRA, or Roth IRA, that's a good place to start. Be sure to include any employer matching in your calculations.

At this point, it is important to discuss a fundamental investment concept that you must both understand and implement as part of your wealth accumulation plan. The contributions to your investment plan should be based on a percentage of your total income, and therefore, the dollar amount invested should increase as your income rises. Many investment programs automatically do this for you. A good example is a 401(k) program. Typically, you contribute, through payroll deduction, a certain percentage of your income, say 6 percent. As your income rises, the dollar amount of your contributions also rises. Hopefully, your income will increase at least as fast as inflation does. If you feel this will not be the case, then part of your action plan should be to seek employment where there is more opportunity for you. This may require improving your value through additional education or training.

First, you must decide what is an appropriate growth rate on your contributions. By what percentage do you think you can increase your contributions annually? This number should be at least equal to the rate you assumed for inflation. If you are on your company's fast track and you expect your income to rise sharply over your career span, you may want to use a higher number. Next, you need to estimate the rate of return you expect to earn on your investments. Remember that different types of investments will earn different returns. You can either choose an aggregate return for all your investments or do a separate calculation for each. Our preference is to use a separate calculation for each investment. Using Table 5.5, find the contributions growth rate you have chosen. Across the top of that chart, find the investment earnings rate you have assumed for your investment account(s). If it is a taxable investment account, don't forget to adjust your expected earnings rate for taxes! Looking down the leftmost column, find the number that corresponds to the number of years until you plan to retire. Finally, find the point where the number of years until retirement and your investment earnings rate intersect. Multiply this factor by your current annual investment contributions. The result is the expected value, at retirement, of your future contributions to your investment account(s).

TABLE 5.5 Growth Rate Calculator

Contribution Growth Rate of 2%
Investment Earnings Rate
Years 4% 6% 8% 10%
 5 5.63 5.85 6.09 6.33
10 13.06 14.30 15.67 17.18
15 22.75 26.27 30.44 35.39
20 35.26 43.03 52.92 65.52
25 51.26 66.28 86.80 114.93
30 71.60 98.30 137.52 195.48
Contribution Growth Rate of 3%
 5 5.74 5.97 6.20 6.45
10 13.63 14.90 16.30 17.85
15 24.30 27.95 32.28 37.42
20 38.50 46.70 57.10 70.31
25 57.21 73.27 95.09 124.87
30 81.61 110.54 152.71 214.60
Contribution Growth Rate of 4%
 5 5.85 6.08 6.32 6.56
10 14.23 15.53 16.97 18.56
15 25.98 29.78 34.28 39.61
20 42.14 50.80 61.75 75.61
25 64.08 81.30 104.57 136.15
30 93.56 125.00 170.48 236.77
Contribution Growth Rate of 5%
 5 5.96 6.19 6.43 6.68
10 14.87 16.20 17.67 19.30
15 27.80 31.76 36.44 41.97
20 46.22 55.38 66.92 81.48
25 72.05 90.55 115.40 148.97
30 107.85 142.15 191.36 262.55
Contribution Growth Rate of 6%
 5 6.08 6.31 6.56 6.81
10 15.53 16.89 18.40 20.07
15 29.78 33.91 38.78 44.52
20 50.80 60.51 72.69 88.01
25 81.30 101.22 127.83 163.57
30 125.00 162.55 215.96 292.65
Contribution Growth Rate of 7%
 5 6.20 6.43 6.68 6.93
10 16.23 17.63 19.18 20.89
15 31.94 36.25 41.31 47.27
20 55.95 66.25 79.13 95.26
25 92.05 113.56 142.10 180.24
30 145.63 186.88 245.04 327.90

For example, assume that you are currently investing $20,000 per year and that you expect to be able to increase your investment contributions by 3 percent per year. Investments are expected to earn 6 percent, and you plan to retire in 15 years. First, find the portion of Table 5.5 for a contributions growth rate of 3 percent. Next, find the point of intersection between the investment earnings rate and the years until retirement (27.95). Now multiply your investment contributions by this factor:

Subtract your answer here from your answer in Step 7 (your retirement account deficit). If your answer is still a positive number (i.e., a deficit), you will need to consider your options.

Best Retirement Strategies

Beginning with the Great Recession of 2008 interest rates plummeted to historical lows, wreaking havoc on the finances of retirees, who increasingly find themselves in a struggle to produce enough cash flow to pay their bills. In addition, life has a way of producing financial surprises that force people to dip even further into their retirement savings. Hopefully, you've completed the “How Much Is Enough?” exercise in this chapter or completed a similar exercise elsewhere. Doing so will give you a much clearer perspective of the actions you'll need to take to secure the retirement lifestyle you desire. Whether you are a pre-retiree (10 years or less away from planned retirement) or already retired, here are some strategies you can use to boost your retirement cash flow:

  • Get a handle on your retirement expenses. Take a moment to sit down and go through your expected expenses for the next 12 months. For retirees, the best place to start is to review your expenses for the past 12 months. Pre-retirees should go through the same exercise but note which expenses will likely change during retirement years. To help you we've created a simple Retirement Cash Management form. Visit the Resource Center at www.welchgroup.com; click on “Links,” then “Budget—Retirement Cash Management.''
  • Downsize your home. For most people, their home is their single largest asset. Our goal for our clients is to be totally debt free, including home mortgage, by the time they retire. If you are debt free at retirement, downsizing will release some of your home equity, which can be invested for additional cash flow. If you are retired but still have a mortgage, your goal should be to downsize enough to be mortgage free. You will have effectively increased your retirement cash flow by your mortgage payments. When you downsize, be sure to carefully evaluate the maintenance costs of your new home. Look for a property that will be low maintenance. Remember that when you sell your home, the first $250,000 of profit ($500,000 for married couples) is tax free. You have to have lived in the home as your primary residence for two of the past five years to qualify under this rule.
  • Downsize your geography. We sometimes refer to this as “going rural.” A lot of people are not willing to pack up and move to another town or state, but if you are, you can significantly reduce your living expenses, including housing costs, property taxes, health care expenses, and state income and sales taxes. For a list of possibilities, conduct an Internet search of “most affordable places to live for retirees.” In many cases you can move just a few miles out of town and see significant cost-of-living savings.
  • Cut the cord. It's crazy but we are finding that some pre-retirees and retirees are still providing financial support for adult children! There's an old saying, “Give your children roots and wings.” You want them “rooted” in your values, unconditional love, a sense of home as a place they are always welcome (to visit!) and belonging to a family. You want to give them wings so they are confident in their own abilities and can seek their own way in life.
  • Travel on the cheap. For people who have flexible schedules, deals abound in the travel business. Here are a few ideas to get you started:
    • Book airfares well in advance.
    • Jump on cruise ship vacations at the last minute as they attempt to fill their ship.
    • Stay in a bed-and-breakfast rather than hotels. They are cheaper and you meet more interesting people.
    • Visit hot spots in the off-season. Avoid the crowds and cut expenses by paying attention to seasonal rates.
    • Picnic your way through your vacation. Picnics, versus pricy restaurants, offer great food and you get to pick the scenery!
  • Take a reverse mortgage. Reverse mortgages have come a long way since they were first introduced in the early 1960s. Today, they are highly regulated by the U.S. Department of Housing & Urban Development (HUD) so you don't have to worry about shady operators or getting a bad deal. With a reverse mortgage, you choose to have the mortgage company either:
    1. Pay you monthly payments for life,
    2. Give you a lump sum to invest as you please, or

    3. Provide you with a line of credit that you can draw on as needed.

       The mortgage company takes all of the risks associated with the loan, and you can never end up owing them money because your house value falls below your total loan amount. This is true for your heirs as well. The loan stays in place for as long as you live in the house. If you move out because of nursing home needs, death, or any other reason, the home must be sold, generally within six months, and any proceeds left after satisfying the loan are returned to you or your heirs. We cover this important topic in more detail later in this chapter. For more information, visit the Resource Center at www.welchgroup.com; click on “Links,” then click on “Reverse Mortgages.”

  • Work longer. For pre-retirees, it's critical that you do a detailed retirement cash flow analysis to determine how much capital you'll need to meet your retirement income goals. This is one instance where you should seek professional advice. In our experience, it takes a lot more money than most people think to fully fund a retirement. The result of the analysis may strongly suggest that working a few more years than you originally planned is your best solution.
  • Save more money. If you are a pre-retiree, a detailed retirement analysis will likely suggest that saving more money is needed. Figure out how you are going to do this now! Two suggestions are to take at least one-half of any raises and commit that money to your retirement savings plan. You can do the same thing with any bonuses. Look for ways to cut unnecessary expenses in order to boost savings. In my experience, everyone can cut a minimum of 10 percent from current spending without feeling deprived at all. We simply waste that much money. For those of you age 50 and older, you can take advantage of the “catch-up” provisions for 401(k) plans and IRAs. For 2014, the catch-up amount for 401(k)s is $5,500, bringing your total allowable contribution to $23,000. For traditional or Roth IRA's the catch-up amount is $1,000, bringing your total allowable contribution to $6,500. These amounts are indexed for inflation annually.
  • Start a new career. Whether you are a pre-retiree or retiree, think about what you love to do just for fun. Now realize that everything you love to do, somebody is making a very good living doing it right now. That person could be you! Turning a hobby into a business can be fun and a moneymaker. Start small and build gradually or go for it in a big way! Realize that even a small amount of income can significantly help your retirement picture.
  • Delay Social Security. If you've made a decision to work longer, consider postponing starting Social Security payments. For every year you delay beyond full retirement age (currently age 66), up to age 70, you'll get an 8 percent boost in payments, which benefits you as long as you live. If you start payments as soon as you are eligible (age 62), you'll lose 25 percent of your full payment amount (called primary insurance amount). There are a number of different strategies that you should consider in order to maximize this important benefit, which we will cover in detail later in this chapter.
  • Personalize your health care plan and benefits. There is no question that health care costs potentially represent one of the largest expenses for retirees. The good news is that you have many options that allow you to customize your plan around your specific needs. The bad news is that all of these options make it a challenging process. However, if you get this one right, it will save you thousands of dollars each year. In order to simplify your research, we'll cover this topic in more detail later in this chapter.
  • Review all insurance coverage. When you add up all of the premiums that you pay for all of the various types of insurance coverage you own, it can easily add up to 15 percent to 30 percent of your after-tax retirement income. Commit to reviewing every insurance policy you own with the goal of cutting overall premiums at least 20 percent. In some cases you'll discover you are paying for coverage that you no longer need. In other cases, by shopping around, you find more competitive pricing. Finally, consider raising your deductibles (property and casualty insurance and health insurance) or lengthening the waiting period (long-term care insurance) before benefits begin. Your agent (property and casualty, life insurance, long-term care) can help you with this, but understand; they are most likely on commission so less premiums means less commission to them! Let them know, up front, that your goal is to cut premiums by at least 20 percent. If you don't feel they are working for your best interest, it's time to get a second opinion.
  • Dump your junk. Most of us are accumulators of “stuff” over a lifetime. It's been easier to let it sit there than do something with it. We say, “Sell it or give it away.” Use a garage sale, eBay, estate sale, or gifts to charities or family members. There are people who do this for a living and charge a commission for helping. Do it yourself or get help but the rule is, “If you haven't used it or enjoyed it in the past 24 months, get rid of it!” This may or may not generate a lot of money for you, but we guarantee it will make you feel good!
  • Convert non-income-producing assets. Are there any other substantial assets (other than your home) that you own, such as raw land, that are not producing income? Unless you have a great reason to hold on, consider selling them and investing the proceeds for retirement cash flow. As you move into retirement, think “simplify.” In addition to converting something non-income-producing into something that is income producing, typically you eliminate some ongoing expenses and hassle associated with that asset.

  • Use the “two-bucket” strategy for managing income taxes. The perfect retirement client is someone who has substantial investments in both retirement plans (bucket 1) and personal investment accounts (bucket 2). This allows us to manage annual income taxes to the greatest extent. If this is the case for you, we recommend that you perform a “trial income tax return” during the first quarter of the calendar year to estimate your tax liability and give you time for implementing tax planning strategies. In some cases we have taken withdrawals from retirement plans even though it was not required and the client did not need the money. We did it because we could take the money out in a very low tax bracket and reinvest the proceeds in their personal account rather than waiting until they are required to withdraw retirement money (age 701/2 required minimum distributions) and having to take it out at a much higher tax rate. In other cases we've drawn more heavily from personal investment accounts, using both interest and principal, in order to control taxable income. Coauthor, Welch, had a case where, for unusual circumstances, we wanted to pay no income taxes for as long as possible. For eight years this client has paid no income taxes and we expect this will continue for years to come. If you are a pre-retiree or younger, keep in mind the importance of building investments in both retirement plan and personal investment accounts.

  • Invest in dividend-paying stocks. We couldn't cover the topic of retirement income without at least a brief discussion of the role dividend-paying stocks have in a retiree's portfolio. When investing for retirement, you'll want your money divided between fixed-income investments (money market accounts, CDs, and bonds) and stocks (see Growth Strategy with a Safety Net® in Chapter 4). For the past several years, fixed-income investments have paid paltry interest payments. Most money market accounts, for example, pay well below 1 percent. This has been devastating for current retirees who need cash flow for paying bills. Dividend-paying stocks have offered a bright spot for retirees looking for higher returns. A basket of blue-chip dividend-paying stocks can easily produce 3 percent or more in annual dividends. Look for a basket of at least 20 companies who have a long history of consistent dividends. Owning 20 or more stocks reduces what we call “single-company risks”—the risk that a company ceases to exist (anyone remember WorldCom?). Stock prices, even for the most conservative blue-chip companies, will fluctuate, but you can remain focused on their consistent dividend payments as you wait for stock prices to rise. You should consider seeking the help of a professional adviser in constructing a portfolio of this type so that it can be tailored to your particular situation.
  • Increase your withdrawal rate as you age. In Chapter 4, we suggested that a 4 percent withdrawal rate is conservative, 5 percent is moderate, and 6 percent or higher is aggressive. However, it's important to understand that these rules of thumb begin to change as you get older. For example, a 9 percent withdrawal rate might not be too high for a 95-year-old. Here's how we might adjust the scale: 4 percent is appropriate for retirees in their 60s, 5 percent for retirees in their 70s, and 6 percent to 7 percent for retirees in their 80s or older. For example, if youre in your 60s and have a total of $2 million in your combined capital buckets, you could withdraw $80,000 per year. However, if you're in your 80s, you could safely withdraw up to $140,000 per year and be unlikely to exhaust your $2 million in your lifetime. These withdrawal rates assume that a portion of your investments are in a basket of conservative stocks (40 percent–60 percent) with the balance in high-quality bonds, CDs, and money market accounts. As you increase your withdrawal rate, you are increasingly likely to begin to invade the principal of your investment accounts resulting in less money for future heirs.
  • Annuitize a portion of your retirement cash flow. We've never been a big fan of annuities mainly because of high fees, commissions, and the fact that at death, there is typically nothing left for heirs. But if leaving heirs is of little concern to you, an immediate annuity might be worth considering at least to cover your basic living expenses. If you are interested in pursuing this strategy, be sure to shop hard for the best pricing and be careful to choose a highly rated insurance company because that company (or companies) serves as the security for your lifetime payments. We would only consider this a viable strategy if you are in excellent health with an expectation and family history of longevity.

What's most important is that you approach retirement having thoroughly assessed your financial situation, reviewed all of your alternatives, and developed a decisive plan of action. If this feels like an overwhelming process, we encourage you to seek the assistance of a qualified professional. We would be happy to make a referral to a professional near you. See our contact information in Appendix A at the end of this book.

Reverse Mortgages

A home equity conversion mortgage (HECM), commonly referred to as a reverse mortgage, is essentially the opposite of a traditional mortgage. With a traditional mortgage, you borrow money from a lender and you repay the loan in monthly installments until it is repaid (including interest). With a reverse mortgage, you're taking a loan on your home, and instead of you paying the lender, the lender pays you. You can receive a lump sum, a line of credit, fixed monthly payments (ideal for retirement planning), or a combination of the three choices.

Here's a quick guide to using a reverse mortgage:

  • You and your co-owner, if you have one, must be age 62 or older in order to qualify for a reverse mortgage. You must pay off any existing mortgages either before or as part of the transaction of acquiring a reverse mortgage.
  • The amount of money you can get depends on several factors, including your age, the value of your home, and the current mortgage interest rates. A good rule of thumb is 50 percent to 60 percent of your home's appraised value. A Federal Housing Administration (FHA) appraisal is required.
  • The mortgage company takes 100 percent of the risks. This is one of the key benefits of a reverse mortgage. If, when you die or move out of the home, it is sold for less than the mortgage balance, neither you nor your heirs owe anything! Technically, you will pay the FHA Mutual Mortgage Insurance Fund a small premium, and they bear the risk!
  • Unused equity remains with you or your heirs. At death, or when you choose to move out, any sale proceeds after satisfying the mortgage are yours (or you heirs).
  • You make no payments. During the term of the reverse mortgage, you are not required to make any payments. You are required to maintain the home and pay property taxes and homeowners insurance.
  • You have multiple choices for how you can take your money:

    1. Monthly income for life. If you choose to take your money in the form of a monthly income, the income will continue for as long as you remain in the home … even if that's a really long time!

       Strategy: Create a monthly income for as long as you and your spouse live in your home. Most people want to live in their home as long as possible. Choosing a monthly income gives you a guaranteed way to help with monthly living costs. For example, a couple, both age 65, own a home worth $500,000; their guaranteed monthly income from a reverse mortgage would be $1,400 per month.

    2. Lump sum. If you choose a lump sum, you are free to do whatever you choose with the money. There are no restrictions.

       Strategy: Using the example from above, the couple could receive a $230,000 lump sum. Use this money to pay off other debt or for home improvements.

    3. Line of Credit (LOC). If you choose an LOC, your money sits there waiting for you to draw on it. You pay interest only on the money you take out of your LOC.

       Strategy: Use your $230,000 LOC as a standby cash reserve account. No interest is charged except on the money you actually draw from your LOC. Life has a way of periodically creating “cash” emergencies, and this is a good substitute for holding actual cash in a low-interest-rate money market account.

    4. Combination. You can choose a combination of the preceding plans.

      Strategy: Mix and match the preceding strategies. For example, you could take a lifetime income to cover some basic monthly bills, take a lump sum to pay off credit card debts or car loan, then use an LOC for basic emergency reserves.

  • Money coming from a reverse mortgage is not subject to income taxes and will not affect your Social Security.

     Strategy: You could use a reverse mortgage LOC to make draws for cash flow, allowing you to postpone taking Social Security until either full retirement age or until age 70, thereby maximizing Social Security benefits (See “Social Security Strategies” in this chapter).

  • When you are no longer living in the home, the mortgage becomes due but you're allowed ample time to sell. Once sold, the proceeds are used first to pay off the loan, and any remaining equity is returned to you or your heirs.
  • Reverse mortgages are governed by the FHA, and therefore the credit and income qualifications are minimal. They simply want to be certain you can afford to pay homeowner's insurance premiums and property taxes.


If you need more cash flow for your retirement and have a strong desire to stay in your home for as long as possible, the reverse mortgage is a strategy you should explore. As with any mortgage loan, you'll want to shop around for the best pricing.

Social Security Strategies

Eighty million Baby Boomers are headed for retirement, and for many, Social Security will be the centerpiece of their retirement income plan. Most people approach Social Security with little thought as to how to maximize the benefits for this program they have invested their hard-earned money into for decades. Yet, there are secret strategies that can mean thousands of dollars in additional income for those willing to do a little homework.

First, let's begin with a few basics. If you were born between 1943 and 1954, you can claim a full Social Security benefit (FRA—full retirement age) at age 66. Beginning at age 62, you can take a reduced benefit equal to 75 percent of your full benefit. If you choose to wait beyond your full retirement age, your benefit increases 8 percent per year until age 70 (called delayed retirement credits). See Table 5.6 for a year-by-year schedule of benefits based on what age you choose to begin receiving those benefits. A spouse, at his or her full retirement age, can choose to receive his or her own benefit based on his or her own work record, or he or she can choose to receive a spousal benefit equal to one-half of his or her spouse's benefit. It's worth noting that a divorced spouse, who was married for at least 10 years, also retains both of these options. Finally, a widow or widower may receive his or her deceased spouse's benefit, or he or she may elect to receive his or her own benefit based on his or her own work record. This widow/widower benefit can be taken as early as age 60. It's within these multiple choices that lay the secret strategies.

TABLE 5.6 Social Security Benefits Based on Claiming Age

Claiming Age Monthly Benefit % of PIA
62 $ 750  75
63 800  80
64 870  87
65 930  93
66 1,000 100
67 1,080 108
68 1,160 116
69 1,240 124
70 1,132 132

Note: Example is based on $1,000 per month benefit at full retirement age 66. PIA = primary insurance amount.

Before we discuss specific strategies, there's a fundamental question you should ask and answer. What is your current health status (and that of your spouse), and what are your prospects for longevity? To the extent you or your spouse has poor health or otherwise is unlikely to live beyond statistical mortality (see Appendix C at the end of this book), you may be best served beginning Social Security payments as early as possible. The healthier you are and the longer you expect to live, the more it makes sense to take advantage of strategies that postpone drawing Social Security benefits for at least one spouse. For example, coauthor Welch's father had a family history of longevity and he was in excellent health (and still working) when he reached full retirement age. He chose to postpone Social Security payments until the mandatory age 70. At age 95 he's still going strong and has received maximum benefits from Social Security. In fact, we estimate that his total contributions into the Social Security system were approximately $230,000 and that his combined withdrawals (including spousal withdrawals) have thus far exceeded $1.3 million!

Strategy 1: The Widow/Widower Strategy

By way of an example, let's assume we have a couple in which the husband is age 62 and the wife is age 60; both have worked and earned full Social Security benefits. Assume the husband dies at age 62. Should the wife claim a widow benefit or wait and claim benefits based on her own earnings? She will be eligible for 100 percent of her husband's benefit if she waits until her full retirement age (age 66). She could begin her widow benefit as early as age 60 but the benefits will be reduced (71.0 percent of primary insurance amount [PIA]).

She should consider taking her widow benefit, perhaps as early as age 60 and then switch to her own benefits once she turns age 70. This strategy allows her to begin receiving income early while delaying her own benefits, thus allowing her own benefit to increase to the maximum amount. It also allows her to make use of both her husband's benefit and her benefit versus just her benefit.

Strategy 2: The 62/70 Strategy

In this example, let's assume that both the husband and wife are age 62 and we anticipate that both will live until or beyond their normal life expectancy. Instead of each taking their own benefit early at age 62 or waiting until their age 66 full benefit, the wife takes her early benefit at age 62 and the husband takes a spousal benefit at age 66. Once he turns age 70, he switches to his full benefit and she switches to a spousal benefit equal to one-half of his age 66 full retirement benefit or she continues her benefit, whichever is higher. Remember that if the husband were to die first, the wife would then step up to 100 percent of the husband's age 70 benefit! Under these case facts, the earliest the husband can take a spousal benefit is age 66.

Strategy 3: The File-and-Suspend Strategy

In this example, let's assume only the husband worked while the wife stayed home to raise the children. Here, the husband could begin his full benefit at age 66, then immediately “suspend” his benefit. The wife then begins a spousal benefit equal to one-half of his full (but suspended) benefit. At age 70, he “unsuspends” his benefit, which has now grown to the maximum benefit amount including the 8 percent per year delayed retirement credits from age 66 to age 70.

It's important to note that in each case example, the individual facts are vital in choosing the best strategy. Particularly in strategies 1 and 2, case facts might drive you to reverse the order of which spouse's benefit you choose to begin first. At your (and your spouse's) age 62 and again at age 66, you need to “run the numbers” under various options or have your financial adviser assist you in making this decision. Making the right choice could mean tens of thousands of dollars of additional Social Security benefits.

TAXATION OF SOCIAL SECURITY BENEFITS

To determine if your Social Security benefit is taxable, you have to calculate what is called your combined income, which is defined as your adjusted gross income (AGI) plus nontaxable interest (e.g., interest on muni bonds) plus half of your Social Security benefit. Note that only half of your Social Security benefit is used to calculate your combined income. Here are the categories (2014, adjusted annually for inflation):

  • No taxes on Social Security. For joint filers with combined income below $32,000 ($25,000 for single filers) there is no federal taxation of Social Security benefits.
  • Taxes on up to 50 percent of Social Security. Joint filers with combined income between $32,000 and $44,000 ($25,000 to $34,000 for single filers) may have to pay income taxes on up to 50 percent of their Social Security benefits.
  • Taxes on up to 85 percent of Social Security. Joint filers with combined income above $44,000 ($34,000 for single filers) may pay taxes on up to 85 percent of their benefit. No one pays federal income tax on more than 85 percent of his or her Social Security benefits.

Are there strategies you can use to reduce taxes on your Social Security benefits?

Strategy 4: Draw Retirement Benefits, Postpone Social Security Benefits

Let's say you are retired at age 62 and you have the option of taking your Social Security benefit now or deferring until age 70. This strategy involves your deferring your Social Security benefit until age 70 and taking your current income need from your 401(k) or IRA. Your Social Security benefit is increasing each year you delay. You will be required to take required minimum distributions at age 701/2 from your retirement accounts but typically the initial amount is only about 3 percent. The advantage is a much higher Social Security benefit for you (and your spouse should he/she outlive you). For example, if your age 62 benefit was $750 per month, by waiting until age 70 to claim benefits, they would rise to $1,320 per month. Remember that if your spouse survives you, he/she can choose to take 100 percent of your PIA once he or she reaches full retirement age. The goal of this strategy is, once you start taking Social Security, to keep your combined income below the taxable Social Security thresholds, therefore receiving benefits at little or no tax. The risk of this strategy? If you (and your spouse) die before or shortly after age 70, you will have spent retirement plan assets that would have gone to heirs and you would have received little to no Social Security benefits. This strategy works best if you expect your spouse and/or you to live well into your 80s or beyond.

Strategy 5: Reduce Your Combined Income by Paying Off Debt

One strategy is to reduce your income by paying off debt. Say you take $100,000 of savings that was producing taxable interest and use it to pay off your $100,000 home mortgage. While your income has gone down, so have your expenses, as well as potentially reducing taxes on your Social Security benefits, especially if you are on the borderline of the 50 percent or 85 percent threshold discussed earlier. Note: Mortgage interest (deduction) is not used in the calculation for taxation of Social Security retirement benefits.

Strategy 6: Convert to a Roth IRA

Roth income or distributions are not part of the combined income calculation for Social Security income tax purposes. The year that you convert from a traditional IRA to a Roth IRA will likely cause higher taxation on your Social Security benefits that year, but in the years that follow, you may have substantially reduced taxes on your Social Security benefits. An alternative would be to do your Roth conversions over several tax years. It's worth noting that the Roth conversion may also trigger a higher Medicare Part B premium for the year of conversion.

Your particular circumstances will dictate which of these strategies may be appropriate, and I recommend that you seek the advice of your tax adviser.

Customizing Your Health Care Plan

Some health care experts suggest that retirees could easily spend $300,000 on health care–related expenses that will not be covered by insurance or government programs. One of the best ways to positively impact this number is by carefully matching your health care insurance and prescription program to your specific needs.

Understanding Medicare

At age 65 you become eligible for Medicare, the health insurance program sponsored by the federal government. There are four parts to Medicare. Here's a summary of your basic choices and options:

MEDICARE PART A: HOSPITAL INSURANCE

In general, this covers hospital care, skilled nursing facility, hospice, and home health care. There are limitations as to what is covered in each of these areas, and the individual is responsible for deductibles and copays. If you or your spouse paid Medicare taxes while working, then you do not pay a premium for Part A.

MEDICARE PART B: MEDICAL INSURANCE

In general, this covers services from doctors, other health care providers, outpatient care, durable medical equipment, home health care, and some preventive services. There are also limitations to what is covered, and the individual is responsible for deductibles and copays. Part B has a monthly premium that can range from $104.90 to $335.70 (2014). Whether you pay the minimum amount or a higher amount is based on your income (i.e., premiums are income tested). For a chart of premium payments based on your income and more information about Medicare Part B, visit the Resource Center at www.welchgroup.com; click on “Links,” then “Medicare Part B—Premiums and Information.” These premiums are adjusted each year.

In general, Medicare Part A and Part B cover 80 percent of your medical costs, and the individual is responsible for the additional 20 percent of costs.

MEDICARE PART C: MEDICARE ADVANTAGE PLAN

This combines Part A and Part B of Medicare. Private insurance companies approved by Medicare provide this coverage. It is simply combining the parts of Medicare into one plan. Most Medicare Advantage plans also include Part D coverage. The individual is responsible for the premium of the Medicare Advantage plan in addition to Part A (if applicable) and Part B premiums. Each plan has different premium levels, copays, and deductibles that the individual has to pay.

MEDICARE PART D: PRESCRIPTION COVERAGE

In general, this covers prescription drugs that are approved and covered by Medicare. There are multiple plans available in each state. The individual must pay a premium for the drug plan and is responsible for copays for each prescription.

Deciding on the Best Plan for You

OPTION 1: ORIGINAL MEDICARE

With the original Medicare option, you have Part A (hospital insurance) and Part B (medical insurance). Remember that Part A and Part B generally pay only 80 percent. Therefore, you must add a supplemental/Medigap plan to cover the additional 20 percent. Each state has supplemental/Medigap plans available, and you must research to find the best plan based on your needs. These plans will have an insurance premium but generally no copays, coinsurance, or deductibles. Therefore, you pay a premium but have no additional out-of-pocket cost with these plans. An average premium for these plans is approximately $200 to $250 per month.

Supplemental/Medigap plans do not cover prescription drugs, so you must add a Part D prescription plan. A Part D prescription plan will cover your prescription drug needs, and the premiums range on average from $20 to $100 per month, depending on your plan choice. Open enrollment is in October of each year and ends by the middle of November.

To summarize, in order to have a complete medical coverage package using the original Medicare plan option, you'll need the following: Medicare Part A and Part B, a supplemental/Medigap plan, and a Part D prescription plan. With this option a person would have a Part B premium, a supplemental/Medigap premium, and Part D premium and copays for prescription drugs.

Best fit: The original Medicare option works best for people who expect to use medical services (and prescription drugs) a lot or for people who want to have a set cost each month for their health care (i.e., monthly insurance premiums). Individuals with original Medicare know in general what their cost will be each month and do not have additional costs when medical services are provided. Most of these Medigap plans are also advantageous for individuals who want the freedom to go to any hospital/doctor that accepts Medicare, therefore not being locked into a particular network.

OPTION 2: MEDICARE ADVANTAGE

Medicare Advantage, also known as Part C, combines Medicare Parts A and B into one plan, and most plans also include Part D. Private insurance companies offer the Advantage plans, and each state will have numerous plans available depending on your geographical location. The plan premiums are typically very low, and some are “zero-premium” plans, but you'll have deductibles, coinsurance, and copays. With these plans you'll typically incur out-of-pocket expenses every time you use medical services.

Best fit: These plans work very well for individuals who are healthy and rarely use medical services or prescriptions drugs or individuals who want to pay little or no insurance premiums. By choosing this plan you know you'll pay out-of-pocket expenses ranging from a few dollars to thousands of dollars, depending on the services rendered or prescription drugs required. These plans typically have hospital/doctor networks that you must use for your medical services. The negative is that you are limited to a particular network with most plans, and your favorite physician/hospital may not be a choice.

It is very important that you research the plans each year and make a decision based on your current health and the plans available to you. The plans change each year, so you must be proactive in checking that your plan is still the best for you.

Most people spend more time planning their annual vacation than they do planning for retirement. Certainly, planning for retirement is filled with complexity and can be an overwhelming task. If you need help, get help from a competent financial adviser. Don't wait because time is perhaps the single most critical factor in creating a successful retirement, particularly when related to investing. Not only are financial advisers skilled in such matters, but they also bring a clarity that is free of emotional bias. To find a financial adviser near you, contact author Stewart Welch III at 205-879-5001 or[email protected] (be sure to reference this book). You now have the tools you need to develop your wealth accumulation plan that will deliver the retirement of your dreams!

In the next chapter, you will learn the pitfalls of dying without a will. You will also establish appropriate goals for your estate plan.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
3.146.255.249