Finances After 55: Transition from Earning a Living to Retirement Living

by Sylvia Lim

Overview

Living off savings is much different than living from paycheck to paycheck. It requires a different kind of budget and a different financial plan. Don't be caught off guard when you make the switch, because financial errors at this time can be costly. Finances After 55 shows you how to get all your personal finance and business matters in order.

Product Details

ISBN-13:	9781770408685
Publisher:	Self-Counsel Press, Inc.
Publication date:	04/15/2012
Series:	Reference Series
Sold by:	Barnes & Noble
Format:	eBook
Pages:	160
Sales rank:	811,892
File size:	2 MB

About the Author

Sylvia is a Certified Financial Planner and a Certified General Accountant. She has more than 20 years’ of accounting and finance experience, and is also a popular workshop leader and college instructor. She is also the author of the best-selling Simply Essential Personal Budgeting Kit, a step-by-step guide that shows anyone how to take control of their finances. (also published by Self-Counsel Press). Her website offers money-saving tips and links on financial planning.

Table of Contents

1 Why Plan? 1 Statistics 2 American demographics 2 Canadian demographics 3 Caregiver demographics 4 The Fear Factor 5 The Current Model of Retirement 7 Changing Needs, Changing Plan 8 Active retirement 9 Semi-active retirement 9 Passive retirement 9 Financial Opportunities and Choices 11 2 You Can Do It: Goal Setting 13 Issues to Consider 13 Active retirement years 13 Semi-active retirement years 14 v Passive retirement years 14 Retirement Goal Setting 15 3 Calculating What You Are Worth 19 Knowing Your Dollar Value 20 Running the Numbers 21 4 Assessing Your Investments 31 ABC’s of Investing: Common Types of Investments 33 Safety investments 33 Income investments 34 Growth investments 34 Mutual funds 35 Real property investment 36 Being Wise 37 The Magic of Compounding 39 What Will Your Investments Produce for You? 41 5 Show Me the Money 51 From Where Will the Money Flow? 51 Running the Numbers 52 Sources of Cash Inflow 54 Company pensions 54 Qualified or registered retirement accounts 55 International social security agreement pensions 55 Social Security benefits (US) 55 Veterans benefit payments (US) 56 Canada Pension Plan (CPP) payments (Canada) 57 Old Age Security (OAS) payments (Canada) 57 Veteran’s benefits (Canada) 57 Other Income-Generating Options 58 Returning to work part-time 58 Home-based business income 59 Rental income from your home 61 vi Finances After 55 6 Yearly Retirement Spending Budget 65 Your Expenses 65 Insurance 68 Life insurance 69 Disability insurance 70 Critical illness insurance 70 Long-term care insurance 70 Health insurance 72 Your Budget and Your Choices 74 Budgeting Downward 77 7 Reading the Crystal Ball 85 Here’s How You Begin … 86 8 Using Your Home to Finance Your Retirement 95 Downsizing Your Home 96 Sell and Rent 97 Reverse Mortgage (US) 98 Reverse Mortgage (Canada) 99 Home Equity Line of Credit (HELOC) 100 9 Housing Choices 103 Housing Options for Active Retirees 105 Option 1: Same house? Different house? Too much house? 105 Option 2: Moving in with your grown child and his or her family 109 Housing Options for Semi-Active Retirees 110 Option 3: Assisted home care 110 Option 4: Independent-living retirement homes 111 Housing Options for Passive Retirees 112 Option 5: Assisted-living retirement homes 112 Option 6: Extended-care or long-term care homes 113 10 Estate Planning 115 Contents vii APPENDIXES 1 Free Money and Other Saving Tips 119 2 Living Well 131 3 Home Sweet; Home Safe 137 RESOURCES 141 CHART 1 Savings Chart Summary Guide 40 SAMPLES 1 Retirement Goal Planning 17 2 Net Worth Worksheet 26 3 Income-Producing Investments 46 4 Cash Inflow Worksheet (For active and 63 semi-active retirees) 5 Cash Inflow Worksheet (For passive retirees) 64 6 Yearly Spending Budget (For active retirees) 81 7 Yearly Spending Budget (For passive retirees) 83