Personal Finance in Your 50s All-in-One For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Book 1 Managing Your Career and Retirement
	Chapter 1 Finding a New Job after 50
		Recognizing the Need for and Value of Experienced Workers
			Noting a change in the current workforce
			Seeing experienced workers as an affordable option
			Capitalizing on lower turnover
			Harnessing the power of highly engaged workers
			Reaping additional benefits
		Tallying the Benefits of Staying in the Workforce
		Reorienting Yourself to Today’s Job-Search Realities
		Deciding What (Else) You Want Out of Work
		Pursuing Your Passion and Finding Purpose
			Considering other careers
			Checking out fast-growing job markets
			Taking the first steps in pursuing your passion
		Putting Proven Success Strategies into Practice
			Starting sooner rather than later
			Giving yourself a full-body makeover
			Using the most effective means to get a job
			Broadening your job search
			Considering a patchwork approach to your career
			Navigating a career change
			Getting the training you need
			Seeking help
		Dealing with Ageism
			Knowing what employers are so worried about
			Laying their worries to rest
	Chapter 2 Dealing with Changes in Employment
		Filing for Unemployment Benefits
		Getting Your Financial House in Order
			Motivating yourself to get started
			Focusing on the fundamentals
			Tapping your financial resources
		Financing Any Additional Education and Training
			Paying for your education
			Avoiding additional debt
			Applying for student financial aid
			Applying for grants and scholarships
			Leveraging tax breaks to lower costs
		Writing Off Your Job-Hunt Expenses
		Accounting for Social Security Benefits Reductions When You Work
		Taking Advantage of Additional Public Benefits
		Providing Benefits for Yourself
			Planning for retirement
			Getting health insurance
	Chapter 3 Joining the Ranks of the Self-Employed
		Working on Contract
			Getting sold on the idea
			Lining up contract gigs
			Running your contracting operation as a business
			Avoiding common pitfalls
		Launching Your Own Business
			Managing your expectations
			Coming up with a business idea
			Getting help
			Writing a solid business plan
			Financing your enterprise
		Becoming a Social Entrepreneur
			Making a nonprofit start-up to-do list
			Getting help: Organizations that support social entrepreneurs
		Exploring Franchising Opportunities
			Don’t rush in
			Do a self-assessment
			Accept that you don’t call the shots
			Do your due diligence
			Be sure you have enough money
			Consider getting a loan
			Check out additional resources
	Chapter 4 Tracking Small Business Revenues and Costs
		Establishing an Accounting System for Your Business
			Separating business from personal finances
			Documenting expenses and income in the event of an audit
			Keeping current on income and payroll taxes
			Reducing your taxes by legally shifting income and expenses
		Keeping Good Tax Records for Your Small Business
			Ensuring a complete and accurate tax return
			Setting up a record-keeping system
			Deciding when to stash and when to trash
			Watching out for state differences
			Replacing lost business records
	Chapter 5 Estimated Taxes and Self-Employment Taxes
		Form 1040-ES: Estimated Tax for Individuals
			Comparing the safe harbor method to the 90 percent rule
			Completing and filing your Form 1040-ES
		Keeping Current on Your Employees’ (and Your Own) Tax Withholding
			Form W-4 for employee withholding
			Tax withholding and filings for employees
		Schedule SE: Self-Employment Tax
			Choosing a version of Schedule SE: Short or long?
			Completing the Short Schedule SE
		Form 8889: Health Savings Accounts (HSAs)
			Understanding how HSAs work and who can use them
			Completing Form 8889
	Chapter 6 Developing a Retirement Plan
		Deciding When to Retire
		Knowing How Much You Really Need for Retirement
			Figuring out what portion of income you need
			Grasping what the numbers mean
		Eyeing the Components of Your Retirement Plan
			Social Security retirement benefits
			Pensions
			Investments
			Your home’s equity
		When Setting Up Your Couples Plan
		Crunching the Numbers
			Understanding assumptions and how they work
			Making the numbers work
			Dealing with excess money
		Making Plans for Nonfinancial Matters
			Personal connections
			Personal health
			Activities, hobbies, interests
	Chapter 7 Grasping Retirement Accounts and Their Rules
		Eyeing the Characteristics of Retirement Accounts
			Focusing on the tax benefits
			Being aware of restrictions and penalties
		Identifying the Different Types of Retirement Accounts
			Employer-sponsored retirement accounts
			Self-employed retirement savings plans
			Individual Retirement Accounts (IRAs)
		Rolling Over Retirement Balances
			Deciding what road to take
			Choosing a custodian and rolling over your balance to an IRA
		Choosing Beneficiaries for Your Retirement Accounts
		Taking Required Minimum Distributions, or RMDs
			Calculating your RMD for an IRA
			Computing the RMD for other retirement plans
Book 2 Getting Your Affairs in Order
	Chapter 1 Ensuring That Your Last Wishes Are Honored
		What Can Happen When You Don’t Plan Your Estate
		Reaping the Benefits of Planning Your Estate
			Planning for your care while you’re alive
			Ensuring that your assets go where you want
		Looking Out for Common Pitfalls
			Benefits and dangers of jointly titling real estate, property, and bank accounts
			Benefits and dangers of life estates
			Danger of subjecting an asset to Medicaid spend-down rules
			Potential for increased tax exposure
		Realizing What Happens If You Don’t Have an Estate Plan
			Following the laws of intestate succession
			Determining the custodian of your minor children
		Creating Your Will or Trust
			Deciding who should create it
			Understanding the process
			Thinking about your kids, money, life insurance, and more
	Chapter 2 Planning Your Bequests
		Calculating Your Assets
		Determining Your Intended Heirs and Beneficiaries
			Individuals
			Institutions or charities
			Other bequests
		Thinking about Your Family Circumstances
		Estate Planning for Second Families
			Giving your new spouse a life estate
			Using trusts to hold your assets
			More tools to consider
		Estate Planning for Your Business
			Inheritance of your sole proprietorship
			Inheritance of your share of a business
		Appointing the People Who Will Carry Out Your Estate Plans
			Choosing your personal representative or trustee
			Choosing a successor
			Discussing your estate plan with your helpers
		Finding Professionals to Assist You
			Getting help from a lawyer
			Hiring an accountant
			Using professional trust services (institutional trustees)
	Chapter 3 Providing for Your Children and Dependents
		Choosing a Guardian
			Making the decision
			Choosing a guardian other than the noncustodial parent
		Managing Your Child’s Assets
		Providing for Your Child’s Needs
			Your child’s education
			Your child’s special needs
			Your child’s financial stability
	Chapter 4 Writing and Signing a Will
		Deciding Whether a Will Serves Your Needs
			Simplicity often leads you to a will
			Assets not covered by a will
		Exploring the Types of Wills
			The statutory will
			The handwritten (holographic) will
			A will of your own
			Other wills
		Elements of a Will
			Who are you?
			What are your assets?
			Who are your beneficiaries?
			What are your bequests?
			Reference to a tangible personal property memorandum
			What happens with the residue (if any) of the estate?
			Payment of debts by the estate
			Describing your funeral and burial wishes
			Designating a personal representative
			Designating a guardian for any minor children
			Your signature
		Executing a Valid Will
			Choosing the right witnesses
			Signing and executing your will
Book 3 Dealing with Insurance
	Chapter 1 Seven Guiding Principles of Insurance
		Keep It Simple
		Don’t Risk More than You Can Afford to Lose
		Don’t Risk a Lot for a Little
		Consider the Odds
		Risk a Little for a Lot
		Avoid Las Vegas Insurance
		Buy Insurance Only as a Last Resort
	Chapter 2 Buying Insurance
		Understanding What Makes a Balanced Insurance Program
		Customizing Each Policy to Meet Your Unique Needs
		Choosing Your Professional Adviser
			Understanding how agents get paid
			Knowing what you want in an adviser
			Searching for candidates
			Making the choice
		Choosing an Insurance Company
	Chapter 3 Getting the Most Out of Medicare
		Starting Medicare: A Broad Overview of Enrollment Deadlines
		Understanding Part A
			Seeing who’s eligible and signing up for Part A
			Defining Part A coverage
		Exploring Parts B and C
			Scoping out Part B
			Probing Part C: Medicare Advantage
		Qualifying for Prescription Drug Coverage with Part D
			Examining Part D plans
			Enrolling in a Part D plan
		Eyeing a Medicare Supplement
			Understanding Medigap policies
			Standardizing Medigap policies
			Choosing a Medigap policy
			Obtaining quotes for Medigap insurance
		Resolving Some Sticky Issues
			Changing plans
			Monitoring changes at work
			Making a foreign move
	Chapter 4 Introducing the Personal Umbrella Policy
		Discovering the Umbrella Policy’s Major Coverage Advantages
			Additional coverage to defend yourself
			Gap coverage
		Coordinating an Umbrella with Your Other Insurance
		Determining How Many Millions to Buy
			Reviewing available limits
			Assessing how likely you are to be sued
			Setting your limits: Recommendations
Book 4 Handling Budgets and Investments
	Chapter 1 Protecting Your Employment Income
		Assessing Your Need for Life Insurance
			Understanding the purpose of life insurance
			Determining your life insurance need
			Assessing your current life coverage
			Figuring out what type to buy
			Choosing where to buy life insurance
		Protecting Your Employment Income: Disability Insurance
			Why most people lack disability insurance and why you need it
			Identifying needed disability coverage
			Shopping for disability coverage
		Investing In and Protecting Your Health
			Take care of your ticker
			Exercise (and sweat)
			Hydrate with good-quality H2O
			Include fiber in your diet
			Manage your stress
			Get your calcium
	Chapter 2 Managing Budgets and Expenses
		Pointing Out Some Retirement Worries You May Have
			Running out of money
			Supporting others
			Addressing your worries
		Spending Your Nest Egg
			Considering the 4 percent rule
			Naming the factors affecting your use of retirement assets
		How Spending Really Changes in Retirement
		Managing Your Expenses
			Bigger-picture issues
			Taxes
			Housing
			Utilities and communication
			Food
			Transportation
			Personal care and fashion
			Travel and fun
			Healthcare
			Insurance
			Subscriptions
			Children and grandchildren
	Chapter 3 Guiding Investments and Distributions in Retirement
		Guiding Your Investments through Retirement
			Estimating your investment income
			Rebalancing your investments
		Looking Closer at Annuities
			Annuities: A cross between a retirement account and insurance
			Contributing in your working years
			Annuitizing in your retirement years
			Examining the newest annuity
		Choosing Your Pension Options
			Selecting between a lump sum or monthly payments
			Deciding among monthly payment options
		Eyeing Withdrawal Strategies for Your Investment Accounts
	Chapter 4 Making Your Best Choices under Social Security
		The Lowdown on Social Security
		Determining When You’re Eligible for Benefits
			Reviewing your earnings history
			Defining when you can retire
		Taking a Closer Look at Spouses’ and Survivor Benefits
			Understanding the choices for spousal benefits
			Ensuring spouses are taken care of: Survivor’s benefits
		Identifying When You May Need to Receive Benefits
			What are your cash flow needs?
			Will waiting pay off?
			What other income do you have?
			Do you want to continue to work?
			What are the potential income taxes on benefits?
			What’s your life expectancy?
		Noting How Working Reduces Benefits
			Taking the penalty for exceeding the annual income limit
			Determining the penalty on a monthly basis
			The penalty isn’t always bad
		Preserving Your Benefits
			Deferring income
			Using your corporation
			Considering exempt income
			Relying on special income
		Being Aware of Potential Income Taxes on Your Benefits
			Understanding how modified adjusted gross income works
			Reducing taxes on benefits
		Changing Your Mind: A Do-Over
			Deciding whether you should take a do-over
			Doing the do-over
		Looking at What the Future Holds for Social Security
Book 5 Planning Your Estate
	Chapter 1 Yes, You Have an Estate
		What Is an Estate?
			The basics: Definitions and terminology
			Property types
			Types of property interest
		Why You Need to Plan Your Estate
		Why Your Estate-Planning Goals Are Different from Your Neighbors’
		The Critical Path Method to Planning Your Estate
		Getting Help with Your Estate Planning
			How to make sure your team of advisers is “FAIL” safe
			Working with financial planning professionals
			Knowing what to expect from your accountant for your estate planning
			Your insurance agent and your estate
			Working with your attorney
	Chapter 2 Bean Counting: Figuring Out What You’re Worth
		Calculating the Value of Your Real Property
			Your home on the range
			That time-share in Timbuktu and other hideaways
			Your investments as a landlord
			Your real estate partnerships
		Calculating the Value of Everything Else: Your Personal Property
			Tangible personal property — items you can touch
			Intangible personal property — bank accounts, stocks and bonds
		Dead Reckoning: Subtracting Your Debts from Your Assets
		Giving Gifts throughout Your Life to Reduce Your Estate’s Value
		Calculating Adjustments in Your Estate’s Value Due to Life Changes
	Chapter 3 Probate and How to Dodge It
		Probing Probate: What You Should Know
			The probate process
			Some complicating factors to the probate process
		Knowing the Good, the Bad, and the Ugly of Probate
			Probate: The good side
			Probate: The bad and downright ugly side
		Streamlining the Probate Process
		Appointing Your Person in Charge
			Identifying your personal representative’s role
			Deciding who’s eligible to be your personal representative
			Avoiding the pitfalls
			Paying your personal representative
		Thinking Things Through When Someone Asks You to Be a Personal Rep
		Understanding Will Substitutes
		Sorting through the List of Will Substitutes
			Figuring out joint tenancy
			Setting up a living trust
			Focusing on the costs of living trusts
		Identifying Some Less Common but Worthy Will Substitutes
			Tenancy by the entirety — the spouse’s option
			Joint tenancy bank accounts
			Savings bonds
			PODs — payable on death accounts
			Deeds
			IRAs and your other retirement accounts
	Chapter 4 Understanding Trusts
		Defining Trusts, Avoiding Hype
			Shazam! An oversimplified definition of trusts
			Adding a bit of complexity with an ingredient list
			Adding some lawyer talk to the definition
			Attaching all the bells and whistles to a trust
		Trust Power — Making Your Beneficiaries Smile
			Avoiding taxes
			Avoiding probate
			Protecting your estate
			Providing funds for educational purposes
			Benefiting charities and institutions
		Sorting Out Trusts — from Here to Eternity
			Trusts for when you’re alive versus when you’re gone
			Changing your mind: Revocable and irrevocable trusts
	Chapter 5 Minimizing Estate-Related Taxes
		Figuring Out Where You Are Today
			Determining your estate’s value
			Totaling your gifts to date
			Checking the tax tables
			Looking out for tax traps
		Fortune-Telling: Picturing the Future as Best You Can
			Predicting the future
			Looking at several scenarios for the federal estate tax
			Blending your present strategies into the future
			Considering the impact of death, divorce, and other bum breaks
			Carefully comparing then betting the house and rolling the dice
		Hmmm . . . Deciding on Strategies and Trade-Offs
			Gifting versus leaving property as part of your estate
			Imagining the ups and downs of leaving your estate to your spouse
			Using gifts below the exclusion amount
			Double dipping on tax savings from charitable gifts
		Putting Together a Comprehensive Estate-Related Tax Plan
			Fixing the holes
			Starting on that gift giving
			Setting up trusts if necessary
			Planning ahead for property transfers upon your death
Book 6 Tapping Into Your Home’s Value
	Chapter 1 Making Important Housing Decisions
		Analyzing Moving
			Considering the pros and cons of moving
			Eyeing the options for where you can move
		Tapping Your Home’s Equity: Reverse Mortgages
			Defining terms and costs
			Determining whether a reverse mortgage is right for you
			Searching for more information on reverse mortgages
		Looking at Tax Issues Regarding Your Housing Decisions
			Being aware of capital gains exclusion rules
			Converting your home to a rental: Yes or no?
	Chapter 2 Reverse Mortgages for Retirement Income
		Grasping the Reverse Mortgage Basics
			Considering common objections
			Who can get a reverse mortgage?
			How much money can you get and when?
			When do you pay the money back?
			What do you owe?
			How is the loan repaid?
			What’s the out-of-pocket cost of getting a reverse mortgage?
			What are the other reverse mortgage costs?
			What’s the total annual rate?
			How do reverse mortgages affect your government-sponsored benefits?
		Shopping for a Reverse Mortgage
			Making major choices
			Counseling
		Deciding Whether You Want a Reverse Mortgage
	Chapter 3 Deciding to Sell
		Figuring Out if You Really Need to Sell
			Good reasons to stay
			Reasons to consider selling
		Knowing the Health of Your Housing Market
			Selling in a depressed housing market
			Selling during a strong market
	Chapter 4 Exploring the Economics of Selling
		Estimating Proceeds of Sale
			Estimated sale price
			Closing costs
			Mortgage payoff
			Moving expenses
			Putting it all together
		Assessing the Financial Feasibility of a Move
			Researching living costs and employment opportunities
			Avoiding relocation traps
	Chapter 5 Determining Your House’s Value
		Defining Cost, Price, and Value
			Value is elusive
			Cost is history
			Price is the here and now
		Determining Fair Market Value (FMV)
			Need-based pricing isn’t FMV
			Median prices aren’t FMV
		Using a Comparable Market Analysis
			Playing with the numbers
			Interpreting CMA adjustments and flaws
			Considering appraisals versus CMAs
		Bidding Wars
			How buyers and sellers get to FMV
			Why “buying a listing” ruins property pricing
Index
EULA