Download - Retirement in the near future?
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Retirement: How to Achieve
Your Financial Goals
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Preparing for Retirement
• Discuss your options
• Prepare personal data record• Obtain support and advice
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How to Live on Less
• Invest wisely– Equities– Reinvest
• First tap taxable accounts
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How to Live on Less
• Reduce housing costs– Downsize– Seek a lower cost of living
• Trim expenses now• Be creative• Reverse your mortgage
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How to Live on Less
• Lower leisure expenses
• Get a job
• Reduce healthcare costs– Medicare– Generic drugs
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Know Retirement Plan Options
• Defined benefit plan– Specified monthly benefit– Federally protected
• Defined contribution plan– No specified benefit– Value fluctuates
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Identify Retirement Plan Options
• Simplified Employee Pension Plan
• Profit-Sharing plan
• 401(k) Plan
• Employee Stock Ownership Plan
• Money Purchase Pension Plan
• Cash Balance Plan
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How Do Variable Annuities Work?
• Issued by insurance company– Carefully review prospectus– Compare benefits/costs– Check investments
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How Do Variable Annuities Work?
• Characteristics of variable annuities– Periodic payments– Death benefit– Tax-deferred
• Tax-free 1035 exchanges
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Where Will You Live?
• Will you move?
• Consider lifestyle questions
• Consider privacy issues
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Where Will You Live?
• Assisted-living facilities– Primarily social– Licensed or unlicensed– Wide cost range
• Nursing homes– Primarily medical care– Expensive
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Long-Term Care Insurance• Purchase before 60-years-old
• Consider benefit/elimination periods
• Consider costs and
• Check benefit payout rate
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Understanding Medicare
• Most people eligible at 65
• Two parts– Hospital insurance– Medical insurance
• Medicare Advantage
• Prescription drug benefit
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Understanding Medicare
• Medicare Part A– Covers hospitalization– Requires no premium at age 65– Eligibility
Receiving Social Security Or worked for government
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Understanding Medicare
• Medicare Part B– Covers other medical costs– Requires premium
• Medicare Part C
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Understanding Medicare
• Medicare Part D– Requires premium– Pays 75% of initial drug costs– Has a gap– Pays 95% over $5,100
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Understanding Medicare• Some expenses not covered
– Physical exams– Dental care– Hearing aids– Eye care– Custodial care
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Understanding Medicare• Medicare HMOs
• Other considerations– Benefits and costs– Doctors and hospitals– Quality of care
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Plan Ahead for Health Care
• Living will
• Durable power of attorney
• Do Not Resuscitate order
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Handling Disposition of Estate
• Estate planning– Minimizes tax consequences– Needed if worth $1.5 million or
more– Ensures how assets are disposed
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Reducing Taxes on Your Estate
• Make annual gifts• Shield property• Use trusts• Make charitable gifts• Fund a life insurance trust
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Rapacki + Co. PA CPAsPlease contact us to discuss one
or more of these issues.Tel 888-RAPACKI