You're Retired Now What?: Money Skills for a Comfortable Retirement

Foreword by Robert J. Sanborn xi

Preface xiii

Acknowledgements xvii

Introduction xix

Part One Your Retirement Mind-Set

Chapter One Cost of Living and Other Financial Issues 3

Estimating Your Retirement Cost of Living 4

Stick with a Long-Term Plan 11

Chapter Two Cash Flow and Nonportfolio Sources of Income 13

Consider Total Return 15

When to Take Your Social Security Income 16

Part-Time Work and Other Sources 19

Mortgaging Your Property for Investment Funds 19

Chapter Three Maximizing Cash Flow 24

Be Like an Egg Farmer or a Landlord 25

Your Capital Base: The Primary Source of Income-Making it Last during Retirement 26

Three Stages of Retirement 29

Part Two The Best Investment Strategy for your Retirement

Chapter Four Identifying your Money Personality 39

Lifeboat Drills 43

Rearview Mirror Investing 44

Your Risk Profile 47

Conclusion 59

Chapter Five Investing During Retirement 60

Invest Investing Can Be Hazardous to Your Wealth 64

The Story of Bill and Libby 67

Diversify Your Portfolio for Stability 68

Retirement Investing Case Studies 70

Chapter Six Developing, Implementing, and Maintaining a Sensible Retirement Portfolio Strategy 77

Dividend Yield versus Capital Appreciation 78

Diversity with Funds 83

Determine Your Optimal Portfolio 85

Find Your Risk Tolerance 90

Value funds and GARP Funds 95

Model Portfolios 96

Tax-Free Municipal Bonds versus Stock Funds 102

Conclusion 103

Chapter Seven How to Select and Assemble a Portfolio of the Best No-Load Mutual Funds 105

Diversification and Other Factors 106

Some All-Star Funds 115

The Rebalancing and Portfolio Review and Monitoring Process 124

Lessons from Investment History 127

Common Investment Mistakes to Avoid 129

The Tortoise Wins the Retirement Race 131

Part Three Apportioning and Insuring Your Nest Egg

Chapter Eight Withdrawal Strategies Using IRAS, Pensions, Rollovers, and Social Security 135

Section I - Withdrawal Planning 136

Section II – Withdrawals from Qualified Retirement Accounts 144

Section III – Social Security Distributions 157

Chapter Nine Insuring Your Investment Portfolio 164

Health Insurance 165

New Medical Savings Account 166

Medicare, Medicaid, and Medigap Coverage 167

Long-Term care Insurance 172

Life Insurance 176

Viatical Settlements of Life Insurance Policies 191

Personal Umbrella Liability Insurance 192

Protection Beyond Insurance 193

Part Four Protecting Your Family’s Financial Well-Being

Chapter Ten Estate Planning 199

Selecting an Attorney 203

Noncitizen Issues 206

The Do-It-Yourselfer 208

Bequests 213

Probate 214

The Bypass (Credit Shelter) Trust 215

The Trustee 219

Life Insurance Trusts 223

Partnerships and Business Interests 224

Deathbed Planning 229

Chapter Eleven Foul-Ups and Fraud: The Laws that Protect The Public 235

Foul-Ups 236

Fraud 239

Government Regulation 243

Chapter Twelve Investment Advisors 253

Conclusion 258

Index 261