David Rye - The 250 Retirement Questions Everyone Should Ask

David Rye, M.B.A., and Kori Bowers, M.B.A.

Avon, Massachussets

Copyright 2008 by David Rye and Kori Bowers

All rights reserved. This book, or parts thereof, may not be reproduced in any form without permission from the publisher; exceptions are made for brief excerpts used in published reviews.

Published by Adams Business
An imprint of Adams Media, an F+W Publications Company
57 Littlefield Street, Avon, MA 02322. U.S.A.
www.adamsmedia.com

ISBN 13: 978-1-59869-210-5
ISBN 10: 1-59869-210-0
eISBN: 978-1-44051-640-5

Printed in the United States.

J I H G F E D C B

Library of Congress Cataloging-in-Publication Data

Rye, David E.
The 250 retirement questions everyone should ask /
by David Rye & and Kori Bowers.
p. cm.
ISBN-13: 978-1-59869-210-5 (pbk.)
ISBN-10: 1-59869-210-0 (pbk.)
1. RetirementUnited StatesPlanning. 2. Retirement
Economic aspectsUnited States. 3. Retirement income
United StatesPlanning. I. Bowers, Kori. II. Title.
HQ1063.2.U6R93 2007
332.02400973dc22 2007015714

This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

From a Declaration of Principles jointly adopted by a
Committee of the American Bar Association and a
Committee of Publishers and Associations

Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book and Adams Media was aware of a trademark claim, the designations have been printed with initial capital letters.

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CONTENTS

INTRODUCTION

T he numbers are hugeover the next five years, 67 million baby boomers will retire. Some are prepared to take the leap, but unfortunately, most of them are still seeking answers to their many questions about retirement before they retire. This book is tailor-made for individuals who have a common goal: to retire. It tells how to master the latest retirement fundamentals and techniques quickly, without wasting time chasing theoretical concepts. Its full of real-world examples and advice, supplemented with a rich menu of easy-to-use Web sites that offer a wealth of additional information.

The book addresses all of the critical retirement questions that are on everyones mind. Can you afford to retire? How much money will you need? If you die first, will there be enough left over to support your spouse? Should you consider ways to supplement your retirement income? Should you sell your home and buy a cheaper one? How do you protect your estate from federal estate taxes? What kinds of insurance will you need and can you afford it?

Also, retirement is supposed to be an enjoyable time. Enjoyment, however, requires disposable income, and that requires financial planning. Is that vacation home or recreational vehicle that youve always dreamed about practical? Can you afford to travel to your favorite places, and where do you look to find bargain travel deals?

If it is handled right, retirement can be one of the most exciting chapters in your life. However, if your retirement is not planned correctly, it can unravel and you could suddenly discover that you dont have enough money to continue living the lifestyle youve grown accustomed to. The lack of a solid investment plan or sudden unexpected medical expenses, for example, can devastate your savings. This book gives you practical, applicable advice so you can stay ahead of the curve.

PART I

Getting Readyto Retire

Chapter

ASSESSING THE BASICS

Retirement has become a norm in our society. Millions of Americans long for the day when they can quit their jobs and turn to a life of fun and leisure. However, many will experience a delay in retirement. Contributing factors such as inadequate retirement savings, stagnating pension benefits, and certain cuts in retirement health benefits are just a few factors prolonging peoples retirement plans. Because of this, many potential retirees are choosing to work well into their retirement. In fact, a new Rose Community Foundation study of Denver metro-area residents ranging from 55 to 65 years old found that only 39 percent of the 1,021 people surveyed plan to retire. According to the Denver Post newspaper article entitled Most Boomers Not Ready To Retire posted on June 27, 2007, the majority are planning to work either part time or full time. The study went on to show that race, ethnicity, and income level all played a key role in these findings. The survey concluded that only 23.3 percent of African-American respondents plan to retire in 10 years as compared to 33 percent for Latinos and 37 percent of Caucasians.

This generation wants choice. They almost demand choice, said Sheila Bugdanowitz, of the Rose Community Foundation, a philanthropic organization that focuses on programs catering to the aging and education. This chapter will provide questions and answers to help you with the many choices and decisions that need to be made in order to retire at your level of comfort.

Question 1: Am I ready to take the leap and retire?

If you answered this question with I think so or No, youve got a problem. You want to know that you are ready to retire. Sure, you may not have 100 percent of your retirement bases covered, but you should know what you do and dont have covered. That will give you a chance to put together an action plan that addresses all of your issues. To help you get started, we have created a questionnaire that looks at some of the open questions you may face.

Retirement Qualification Questionnaire
Answer yes or no to each question. Maybe answers are not allowed.

Do you have any children or other dependents that you must take care of after you retire?

If yes, do you have a plan in place for how youll handle this?

If you retire before you are eligible for Medicare (age 65), will you have medical insurance that covers you?

Have you explored medical insurance options and cost?

Do you know the basics about what long-term care insurance covers?

Do you need life insurance? If you answered yes, then how much?

Do you know how much money youll need to support a retirement lifestyle thats acceptable to you?