Table of Contents
Introduction 1
About This Book 1
Foolish Assumptions 2
Icons Used in This Book 2
Beyond the Book 3
Where to Go from Here 3
Book 1: Managing Your Career and Retirement 5
Chapter 1: Finding a New Job after 50 7
Recognizing the Need for and Value of Experienced Workers 7
Tallying the Benefits of Staying in the Workforce 11
Reorienting Yourself to Today’s Job-Search Realities 12
Deciding What (Else) You Want Out of Work 13
Pursuing Your Passion and Finding Purpose 15
Putting Proven Success Strategies into Practice 21
Dealing with Ageism 27
Chapter 2: Dealing with Changes in Employment 31
Filing for Unemployment Benefits 32
Getting Your Financial House in Order 32
Financing Any Additional Education and Training 36
Writing Off Your Job-Hunt Expenses 41
Accounting for Social Security Benefits Reductions When You Work 43
Taking Advantage of Additional Public Benefits 44
Providing Benefits for Yourself 45
Chapter 3: Joining the Ranks of the Self-Employed 49
Working on Contract 50
Launching Your Own Business 55
Becoming a Social Entrepreneur 65
Exploring Franchising Opportunities 69
Chapter 4: Tracking Small Business Revenues and Costs 75
Establishing an Accounting System for Your Business 76
Keeping Good Tax Records for Your Small Business 80
Chapter 5: Estimated Taxes and Self-Employment Taxes 85
Form 1040-ES: Estimated Tax for Individuals 86
Keeping Current on Your Employees’ (and Your Own) Tax Withholding 89
Schedule SE: Self-Employment Tax 90
Form 8889: Health Savings Accounts (HSAs) 93
Chapter 6: Developing a Retirement Plan 97
Deciding When to Retire 98
Knowing How Much You Really Need for Retirement 99
Eyeing the Components of Your Retirement Plan 101
When Setting Up Your Couples Plan 106
Crunching the Numbers 107
Making Plans for Nonfinancial Matters 110
Chapter 7: Grasping Retirement Accounts and Their Rules 113
Eyeing the Characteristics of Retirement Accounts 114
Identifying the Different Types of Retirement Accounts 117
Rolling Over Retirement Balances 120
Choosing Beneficiaries for Your Retirement Accounts 123
Taking Required Minimum Distributions, or RMDs 125
Book 2: Getting Your Affairs in Order 127
Chapter 1: Ensuring That Your Last Wishes Are Honored 129
What Can Happen When You Don’t Plan Your Estate 130
Reaping the Benefits of Planning Your Estate 131
Looking Out for Common Pitfalls 133
Realizing What Happens If You Don’t Have an Estate Plan 138
Creating Your Will or Trust 140
Chapter 2: Planning Your Bequests 145
Calculating Your Assets 145
Determining Your Intended Heirs and Beneficiaries 146
Thinking about Your Family Circumstances 149
Estate Planning for Second Families 149
Estate Planning for Your Business 152
Appointing the People Who Will Carry Out Your Estate Plans 156
Finding Professionals to Assist You 159
Chapter 3: Providing for Your Children and Dependents 163
Choosing a Guardian 163
Managing Your Child’s Assets 166
Providing for Your Child’s Needs 167
Chapter 4: Writing and Signing a Will 173
Deciding Whether a Will Serves Your Needs 174
Exploring the Types of Wills 177
Elements of a Will 181
Executing a Valid Will 187
Book 3: Dealing with Insurance 189
Chapter 1: Seven Guiding Principles of Insurance 191
Keep It Simple 191
Don’t Risk More than You Can Afford to Lose 193
Don’t Risk a Lot for a Little 193
Consider the Odds 194
Risk a Little for a Lot 195
Avoid Las Vegas Insurance 196
Buy Insurance Only as a Last Resort 196
Chapter 2: Buying Insurance 199
Understanding What Makes a Balanced Insurance Program 200
Customizing Each Policy to Meet Your Unique Needs 200
Choosing Your Professional Adviser 201
Choosing an Insurance Company 206
Chapter 3: Getting the Most Out of Medicare 207
Starting Medicare: A Broad Overview of Enrollment Deadlines 208
Understanding Part A 210
Exploring Parts B and C 214
Qualifying for Prescription Drug Coverage with Part D 223
Eyeing a Medicare Supplement 230
Resolving Some Sticky Issues 234
Chapter 4: Introducing the Personal Umbrella Policy 237
Discovering the Umbrella Policy’s Major Coverage Advantages 238
Coordinating an Umbrella with Your Other Insurance 240
Determining How Many Millions to Buy 242
Book 4: Handling Budgets and Investments 245
Chapter 1: Protecting Your Employment Income 247
Assessing Your Need for Life Insurance 248
Protecting Your Employment Income: Disability Insurance 254
Investing In and Protecting Your Health 258
Chapter 2: Managing Budgets and Expenses 263
Pointing Out Some Retirement Worries You May Have 264
Spending Your Nest Egg 267
How Spending Really Changes in Retirement 269
Managing Your Expenses 271
Chapter 3: Guiding Investments and Distributions in Retirement 281
Guiding Your Investments through Retirement 282
Looking Closer at Annuities 285
Choosing Your Pension Options 289
Eyeing Withdrawal Strategies for Your Investment Accounts 294
Chapter 4: Making Your Best Choices under Social Security 297
The Lowdown on Social Security 298
Determining When You’re Eligible for Benefits 300
Taking a Closer Look at Spouses’ and Survivor Benefits 304
Identifying When You May Need to Receive Benefits 310
Noting How Working Reduces Benefits 314
Preserving Your Benefits 316
Being Aware of Potential Income Taxes on Your Benefits 319
Changing Your Mind: A Do-Over 324
Looking at What the Future Holds for Social Security 325
Book 5: Planning Your Estate 329
Chapter 1: Yes, You Have an Estate 331
What Is an Estate? 332
Why You Need to Plan Your Estate 339
Why Your Estate-Planning Goals Are Different from Your Neighbors’ 342
The Critical Path Method to Planning Your Estate 344
Getting Help with Your Estate Planning 346
Chapter 2: Bean Counting: Figuring Out What You’re Worth 353
Calculating the Value of Your Real Property 354
Calculating the Value of Everything Else: Your Personal Property 356
Dead Reckoning: Subtracting Your Debts from Your Assets 359
Giving Gifts throughout Your Life to Reduce Your Estate’s Value 360
Calculating Adjustments in Your Estate’s Value Due to Life Changes 360
Chapter 3: Probate and How to Dodge It 363
Probing Probate: What You Should Know 364
Knowing the Good, the Bad, and the Ugly of Probate 369
Streamlining the Probate Process 372
Appointing Your Person in Charge 372
Thinking Things Through When Someone Asks You to Be a Personal Rep 379
Understanding Will Substitutes 380
Sorting through the List of Will Substitutes 382
Identifying Some Less Common but Worthy Will Substitutes 392
Chapter 4: Understanding Trusts 397
Defining Trusts, Avoiding Hype 397
Trust Power — Making Your Beneficiaries Smile 402
Sorting Out Trusts — from Here to Eternity 405
Chapter 5: Minimizing Estate-Related Taxes 411
Figuring Out Where You Are Today 412
Fortune-Telling: Picturing the Future as Best You Can 415
Hmmm . . . Deciding on Strategies and Trade-Offs 421
Putting Together a Comprehensive Estate-Related Tax Plan 425
Book 6: Tapping Into Your Home’s Value 429
Chapter 1: Making Important Housing Decisions 431
Analyzing Moving 431
Tapping Your Home’s Equity: Reverse Mortgages 436
Looking at Tax Issues Regarding Your Housing Decisions 439
Chapter 2: Reverse Mortgages for Retirement Income 441
Grasping the Reverse Mortgage Basics 441
Shopping for a Reverse Mortgage 451
Deciding Whether You Want a Reverse Mortgage 453
Chapter 3: Deciding to Sell 455
Figuring Out if You Really Need to Sell 457
Knowing the Health of Your Housing Market 464
Chapter 4: Exploring the Economics of Selling 469
Estimating Proceeds of Sale 469
Assessing the Financial Feasibility of a Move 475
Chapter 5: Determining Your House’s Value 481
Defining Cost, Price, and Value 482
Determining Fair Market Value (FMV) 484
Using a Comparable Market Analysis 486
Bidding Wars 493
Index 497
