Download Personal Finance For Seniors For Dummies PDF

TitlePersonal Finance For Seniors For Dummies
TagsFor Dummies
LanguageEnglish
File Size3.4 MB
Total Pages459
Table of Contents
                            Personal Finance For Seniors For Dummies®
	About the Authors
	Dedication
	Authors’ Acknowledgments
	Contents at a Glance
	Table of Contents
	Introduction
		About This Book
		Conventions Used in This Book
		What You’re Not to Read
		Foolish Assumptions
		How This Book Is Organized
		Icons Used in This Book
		Where to Go from Here
	Part I: Working toward Retirement
		Chapter 1: Looking Ahead to Your Future
			Planning for the Longer Term
			Eyeing Keys to Successful Retirement Planning
		Chapter 2: Protecting Your Employment Income and Your Health
			Assessing Your Need for Life Insurance
			Shielding Your Employment Income: Disability Insurance
			Investing In and Protecting Your Health
		Chapter 3: Developing a Retirement Plan
			Deciding When to Retire
			Knowing How Much You Really Need for Retirement
			Eyeing the Components of Your Retirement Plan
			When Setting Up Your Plan
			Crunching the Numbers
			Making Plans for Nonfinancial Matters
		Chapter 4: Identifying Retirement Investments and Strategies
			Defining Investments
			What You Need to Do Before You Select and Change Investments
			Surveying Different Investments
			Managing Investment Portfolios
		Chapter 5: Grasping Retirement Accounts and Their Rules
			Eyeing the Characteristics of Retirement Accounts
			Identifying the Different Types of Retirement Accounts
			Rolling Over Retirement Balances
			Choosing Beneficiaries for Your Retirement Accounts
			Taking Required Minimum Distributions, or RMDs
	Part II: Making Money Decisions in Retirement
		Chapter 6: Managing Budgets and Expenses
			Pointing Out Some Retirement Worries You May Have
			Spending Your Nest Egg
			How Spending Really Changes in Retirement
			Managing Your Expenses
		Chapter 7: Guiding Investments and Distributions in Retirement
			Guiding Your Investments through Retirement
			Looking Closer at Annuities
			Choosing Your Pension Options
			Eyeing Withdrawal Strategies for Your Investment Accounts
		Chapter 8: Making Important Housing Decisions
			Analyzing Moving
			Tapping Your Home’s Equity: Reverse Mortgages
			Looking At Tax Issues Regarding Your Housing Decisions
		Chapter 9: Considering Your Long-Term Care Insurance Needs and Options
			Understanding Long-Term Care
			Planning to Pay for LTC
			Considering LTC Insurance
			Financing LTC Yourself
			Evaluating Employer and Group Coverage
			Examining Combination Policies
			Combining LTCI and Self Insurance
	Part III: Dealing with Government Programs
		Chapter 10: Making Your Best Choices under Social Security
			The Lowdown on Social Security
			Determining When You’re Eligible for Benefits
			Taking a Closer Look at Spouses’ and Survivor Benefits
			Identifying When You May Need to Receive Benefits
			Noting How Working Reduces Benefits
			Preserving Your Benefits
			Being Aware of Potential Income Taxes on Your Benefits
			Changing Your Mind: A Do-Over
			Looking at What the Future Holds for Social Security
		Chapter 11: Getting the Most Out of Medicare
			Starting Medicare: A Broad Overview of Enrollment Deadlines
			Understanding Part A
			Exploring Parts B and C
			Qualifying for Prescription Drug Coverage with Part D
			Eyeing a Medicare Supplement
			Resolving Some Sticky Issues
		Chapter 12: The State Health Care System Backup: Medicaid
			Discovering What Medicaid Is
			Considering Medicaid Eligibility
			Establishing Functional Eligibility
			Meeting Financial Requirements
			Examining Planning Strategies
			Using Both Medicare and Medicaid
			Eyeing Reasons Not to Seek Medicaid
	Part IV: Estate Planning: It’s More than Just Dead People and Lawyers
		Chapter 13: The Basics on Estate Planning
			Understanding Estate Planning
			Studying Some Strategies Before Starting Your Estate Plan
			Answering Key Questions to Gather Critical Information
			Knowing How Estate Taxes Work
			Finding Good, Affordable Advice
		Chapter 14: Eyeing Wills and Other Legal Documents
			Writing Your Will
			Assigning a Financial Power of Attorney
			Delegating Medical Decisions
			Passing Other Assets
			Looking Closer at Probate
		Chapter 15: Tackling the Federal Estate Tax When You Have Too Much Money
			Understanding the Estate Tax
			Tallying Your Assets
			Reducing Your Estate
			Taking Deductions
			Choosing Family Estate Strategies
			Contemplating Life Insurance
			Avoiding the Tax on Gifts to Grandkids: The GSTT
		Chapter 16: Focusing on Estate Taxes and the Many Types of Trusts
			Identifying the Cast of Characters
			Naming the Types of Trusts
			Using Trusts in Estate Planning
	Part V: The Part of Tens
		Chapter 17: Ten Common Retirement and Estate Planning Mistakes
			Not Having at Least a Basic Financial Plan
			Procrastinating About Estate Planning
			Underestimating Life Expectancy
			Miscalculating Inflation
			Believing You’ll Retire When You Expected To
			Ignoring Nonfinancial Planning
			Failing to Coordinate with Your Spouse
			Expecting to Age in Place
			Thinking Most Medical Expenses Will Be Covered
			Missing the Initial Enrollment for Medicare Plans
		Chapter 18: Ten Things to Know About Working in Retirement
			Some Work Is Good for You
			The Social Security (Tax) Impact Can Be Huge
			Number Crunching Can Show You How Different Scenarios Work
			Do What You Love
			Investing in Education Can Boost Your Employment Value
			Some Employers Are More User-Friendly for Older Workers
			Taking Some Employment Risk Is Important
			Examine Starting/Buying a Small Business
			Your Spouse May Not Want What You Want
			Volunteering Makes You Happy and Benefits Your Community
		Chapter 19: Ten (or So) Tips to Know About Caring for Your Aging Parents
			Leverage Off Others’ Experiences
			Ask for Professional Help
			Invest in Their Health
			Get Your Parents’ Affairs in Order
			Examine Housing and Medical Care Options
			Use Caregiver Agreements
			Separate Living Spaces if Parents Are Going to Move In
			Take Care of Your Family
			Take Care of Yourself
	Index
                        
Document Text Contents
Page 1

97804705487652199.eps


Eric Tyson
Bestselling author, syndicated columnist,
and financial counselor

Bob Carlson
Author, newsletter editor, publisher, and
public pension plan trustee

Learn to:
• Create a budget for retirement

• Wisely invest, spend, and protect
your wealth

• Plot the windy road of pension
plans, Social Security, healthcare,
and Medicare

Personal Finance
For Seniors

Making Everythin
g Easier!



Open the book and find:

• Advice on when to retire
and guidance on estimating
expenses

• Your best investments for
retirement money

• Plain-English explanations of
retirement account options

• How to adjust spending when
life throws you a curve ball

• Tips on choosing pension
options

• Housing choices in retirement

• The best Social Security and
healthcare benefits for you

• Ways to reduce your estate taxes

Eric Tyson is a nationally recognized personal finance counselor,
writer, and lecturer. He is the bestselling author of Personal Finance
For Dummies and Mutual Funds For Dummies. Bob Carlson is
editor of the monthly newsletter “Retirement Watch” and author
of The New Rules for Retirement.

Business/Personal Finance/Investing

$21.99 US / $25.99 CN / £15.99 UK

ISBN 978-0-470-54876-9

Go to Dummies.com®
for videos, step-by-step photos,

how-to articles, or to shop!

The fast and easy way
for Baby Boomers to
protect their financial future
Are you nearing (or already basking in) retirement?
Are you aware of the unique financial opportunities
and challenges you’ll face in your golden years? This
hands-on, practical guide empowers you to chart your
financial course with targeted advice for investing,
spending, and protecting your wealth for the decades
to come.

• Plan, plan, plan — understand just how important it is to
plan ahead for retirement (and how it’ll give you more
attractive financial options in the future)

• Tackle the issues — discover the best ways to manage your
annual expenses and budget so you’ll have enough to live
on now and in the years ahead

• Know your benefits — get the lowdown on government
programs available, like Social Security, Medicare, and
Medicaid

• Tie up loose ends — find out how to plan your estate (no
matter how large or modest), prepare a will, and determine
considerations for a living will, medical powers of attorney,
and more

P
erso

n
a

l Fin
a

n
ce


Fo

r Sen
io

rs

Tyson
Carlson

spine=.91”

Page 2

spine=.91”

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Page 229

205 Chapter 10: Making Your Best Choices under Social Security

Choice No. 3: Claim and suspend
You have a third option as a lower-earning spouse. Social Security
allows a person to file for retirement benefits and then suspend
receipt of them. The suspension is treated as though the person
never applied for benefits during the suspension period. The
monthly reductions for claiming benefits before FRA aren’t applied
and delayed retirement credits accumulate during the suspension
period. Once a beneficiary suspends benefits, they can have the ben-
efits resume at any time. If the benefits are applied for at age 62 but
suspended until age 70, the maximum benefit may be received at 70.

This is known as the claim-and-suspend strategy. The claim-and-
suspend strategy can be used to allow the lower-earning spouse
to begin receiving a spousal benefit now while the higher-earning
spouse effectively delays receipt of benefits and receive higher
benefits in the future.

If you’re younger than FRA and you continue working for an
income exceeding the earned income limit, you don’t need to file
to suspend the benefits. The adjustment process automatically is
done through the earnings test (we discuss this later in the section
“Noting How Working Reduces Benefits”). Benefits are reduced
if you earn too much money while receiving benefits before FRA,
but the reduction increases benefits received later. But at FRA and
later, a beneficiary must apply to suspend the benefits.

Ensuring spouses are taken
care of: Survivor’s benefits
If you’re the higher-earning spouse, you want to make sure your
lower-earning spouse is taken care of — at least we hope so. In that
case, you, the higher-earning spouse, need to consider survivor’s
benefits when deciding the age to begin retirement benefits. A
Social Security survivor’s benefit is the benefit payable to a surviving
spouse after the other spouse passes away. The survivor’s benefit
is 100 percent of the benefit the deceased spouse was receiving.
This section identifies some strategies you can use to ensure your
spouse receives the maximum benefits after you’re gone.

16_548769-ch10.indd 20516_548769-ch10.indd 205 3/23/10 7:33 PM3/23/10 7:33 PM

Page 230

206 Part III: Dealing with Government Programs
As the higher-earning spouse, you have to figure out how your deci-

sion regarding taking benefits affects your lower-earning spouse.
Your goal should be to maximize the lifetime income of your spouse.

Strategy No. 1: Delay retirement benefits
You can increase the lifetime income of your lower-earning spouse
if you delay retirement benefits, but only if you, the higher-earning
spouse, die first. Delaying benefits is a form of free life insurance
that provides extra income to the lower-earning spouse.

When both spouses are alive, the lower-earning spouse can receive
the higher amount of his earned benefit or 50 percent of the higher-
earning spouse’s benefit at FRA. When the higher-earning spouse
dies, the lower-earning spouse can’t receive retirement benefits and
a survivor’s benefit. When someone is eligible for both types of
benefits, he receives only the higher of the benefits. If the higher-
earning spouse passes away, the surviving spouse either continues
to receive his own earned benefit or receives 100 percent of the
benefit that the higher-earning spouse was receiving before passing
away. In other words, when both spouses were receiving benefits
and one passes away, the household’s income will be reduced by
the lower of the two benefits the spouses were receiving.

The survivor’s benefits rules should influence the age at which
a higher-earning spouse decides to begin retirement benefits.
For example, say the higher-earning spouse is eligible for $1,800
monthly at FRA, while the lower-earning spouse is eligible for
an earned benefit of $700. If the lower-earning spouse chooses
to take the spouse’s benefit while the other spouse is still alive,
he will receive $900 monthly, half of the higher-earning spouse’s
FRA benefit. The amount received by the higher-earning spouse
(and the lower-earning spouse) will depend on the age her ben-
efits began. Suppose she delayed benefits past FRA and receives
$2,200 monthly. If the higher-earning spouse passes away first,
the lower-earning spouse would then receive $2,200 monthly as a
survivor’s benefit. If the lower-earning spouse passes away first,
the higher-earning spouse continues to receive only her earned
benefit. Suppose instead the higher-earning spouse began benefits
before FRA and was receiving $1,500 monthly. If the higher-earning
spouse passes away first, the surviving spouse will receive $1,500
monthly.

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Page 458

Notes
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________

28_548769-bindex.indd 43428_548769-bindex.indd 434 3/23/10 7:39 PM3/23/10 7:39 PM

Page 459

97804705487652199.eps


Eric Tyson
Bestselling author, syndicated columnist,
and financial counselor

Bob Carlson
Author, newsletter editor, publisher, and
public pension plan trustee

Learn to:
• Create a budget for retirement

• Wisely invest, spend, and protect
your wealth

• Plot the windy road of pension
plans, Social Security, healthcare,
and Medicare

Personal Finance
For Seniors

Making Everythin
g Easier!



Open the book and find:

• Advice on when to retire
and guidance on estimating
expenses

• Your best investments for
retirement money

• Plain-English explanations of
retirement account options

• How to adjust spending when
life throws you a curve ball

• Tips on choosing pension
options

• Housing choices in retirement

• The best Social Security and
healthcare benefits for you

• Ways to reduce your estate taxes

Eric Tyson is a nationally recognized personal finance counselor,
writer, and lecturer. He is the bestselling author of Personal Finance
For Dummies and Mutual Funds For Dummies. Bob Carlson is
editor of the monthly newsletter “Retirement Watch” and author
of The New Rules for Retirement.

Business/Personal Finance/Investing

$21.99 US / $25.99 CN / £15.99 UK

ISBN 978-0-470-54876-9

Go to Dummies.com®
for videos, step-by-step photos,

how-to articles, or to shop!

The fast and easy way
for Baby Boomers to
protect their financial future
Are you nearing (or already basking in) retirement?
Are you aware of the unique financial opportunities
and challenges you’ll face in your golden years? This
hands-on, practical guide empowers you to chart your
financial course with targeted advice for investing,
spending, and protecting your wealth for the decades
to come.

• Plan, plan, plan — understand just how important it is to
plan ahead for retirement (and how it’ll give you more
attractive financial options in the future)

• Tackle the issues — discover the best ways to manage your
annual expenses and budget so you’ll have enough to live
on now and in the years ahead

• Know your benefits — get the lowdown on government
programs available, like Social Security, Medicare, and
Medicaid

• Tie up loose ends — find out how to plan your estate (no
matter how large or modest), prepare a will, and determine
considerations for a living will, medical powers of attorney,
and more

P
erso

n
a

l Fin
a

n
ce


Fo

r Sen
io

rs

Tyson
Carlson

spine=.91”

www.dummies.com

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