Thomas J. Anderson - The Value of Debt in Retirement: Why Everything You Have Been Told Is Wrong

Thomas J. Anderson

Cover design: Wiley

Copyright 2015 by Thomas J. Anderson. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Anderson, Thomas J. (Certified investment management analyst)
The value of debt in retirement : why everything you have been told is wrong / Thomas J. Anderson.
pages cm
Includes bibliographical references and index.

ISBN 978-1-119-01998-5 (hardback); ISBN 978-1-119-02001-1 (epdf); ISBN 978-1-119-02000-4 (epub) 1. Finance, Personal. 2. RetirementPlanning. I. Title.
HG179.A5597628 2015
332.70846dc23

2014049407

This book is dedicated to two very special sets of retirees
who have given me the insight and unconditional love
necessary to write this book:

Grandpa John & Grandma Kay Kay

Marty & Julianne Smith

You have worked hard for your money. You have saved. If you are reading this book, you are likely in retirement, near retirement, or an advisor to those who wish to retire. When it comes to retirement, Charles Dickens said it best: It was the best of times; it was the worst of times. Boomers are getting pushed and pulled in a lot of directions as they retire or near retirement. They are the sandwich generationhelping their kids, helping their parents. At the same time, many want to enjoy life, take trips, and buy the things theyve always wanted. How can retirees balance these conflicting demands and desires?

Tom Anderson has received multiple national awards for his wealth-management expertise and studied at many of the top schools in finance. Wealth management is all he has done and all he has studied. While others were at summer camp, Anderson went to Wall Street Camp. In The Value of Debt in Retirement, Anderson shows you some potentially shocking revelations, tricks that high-net-worth individuals have used for years. These include:

• Why rushing to pay off your mortgage in the name of being debt-free when you retire may leave you with less liquidity, less tax efficiency, and a profound inability to take advantage of the basic ideas, strategies, and practices in this book.
• How an intriguing combination of selling and borrowingselling from your IRA and borrowing against whats called an Asset-Based Loan Facilitycan provide you with greatly superior, highly tax-efficient results.
• How and why financial advisors, despite their claims that they are not giving you tax advice, could be doing exactly that... often in a way that primarily amounts to guessing with your future.
• How conventional wisdom is generally flat-out wrong with respect to assumptions that are made regarding taxes, annuities, IRAs, and Roth IRAs.

Helpful guides at the end of the book will help you see how in the current environment you can buy a $100,000 car for $250 per month with no required monthly payment. How to buy a $1 million second home, 100 percent financed, for $2,500 per month, fully tax deductible. You are going to get amazing ideas on better ways to help your kids, help your parents, and leave a bigger legacy for your charities. Along the way you will see how you can be prepared for emergencies and opportunities that come your way.

Increasing return, reducing taxes, and lowering riskall with a goal of making sure that you do not outlive your moneyis what this book is all about. But make no mistake: There is no free lunch. Not everyone will be able to implement these ideas, and they come with many risks. But I can promise you this: Anderson is going to challenge you. He challenges me most every day!

Sarah Anderson

President, Better Debt, LLC

Revolutionizing DebtTM

The leading expert in securities-based lending education, tools, and solutions

www.betterdebt.com

There may be some books where somebody sits down, writes on a computer, hits send, and poof!a book comes out. This isnt one of those books. Writing a book like this would not be possible without an incredible team surrounding it.

My core business would not be possible without Kerry Abdoney, Jon Bancks, Stacey Halyard, Darla Lowe, JoAnn Masters, and Julie Vogt, as well as my many partners throughout the country. I cant tell you how much you have contributed to my ability to do this project and how much I value you. You are all part of my family and I love you.

Rafe Sagalyn, Brandon Coward, and the team at ICM have been excellent agents and facilitated a great relationship with Wiley. I appreciate our long-term partnership and sincerely value your advice and guidance.