The value of debt in retirement : why everything you have been told is wrong

Content: Foreword xv     Acknowledgments xvii     Introduction xxi     Part I: Basic Ideas and Core Concepts     Chapter 1: A Better Path 3     A Successful but Controversial Debut 4     The Fifth Indebted Strength 7     Who Can Benefit from This Book? Not Only Millionaires! (But They Can, Too) 9     Everyday Example #1: Immediately Better Credit Card Debt 11     Getting beyond the ABLF and Focusing on Retirement 12     Notes 14     Chapter 2: Debt in Retirement: Conventional Wisdom, Right and Wrong 17     What Some Popular Retirement Books Get Right   and Wrong   about Debt 18     The    Good versus Bad    Debt Camp 19     Bach Where We Started: The Irresolutely    Against Debt    Camp 20     The (Very Small)    Sometimes It   s Okay to Have Debt    Camp 21     Everyday Example #2: A Bridge Loan over Troubled Quarters 22     Notes 24     Chapter 3: Why and Whether to Adopt a Holistic Debt  ]Inclusive Approach in Retirement 27     A First Look at the Three Main Types of Debt: Oppressive, Working, and Enriching 28     Seven Rules for Being a Better Debtor 30     In the Company of Longer Life Spans 31     Winging Your Way to a Successful Retirement: The    Whole Chicken    Approach 33     Everyday Example #3: A Holistic Business Recipe for Success 35     Notes 37     Part II: The Power of Debt in Reducing Taxes, Increasing Return, and Reducing Risk     Chapter 4: Returning to the Return You Need 43     Cash Flow and Incoming Money: The Ultimate Key to Resource Management 45     You Have to Get Your Numbers Right! 46     Regardless of Your Net Worth, Distributions Are Rarely Constant over Time in Retirement 49     How Much Can You Safely Take Out? 52     How You May Be Able to Increase Your Rate of Return 54     How Is This Possible? A Big  ]Picture Overview 56     Risks and Problems 57     Everyday Example #4: Retiring the    Loan    Survivor 58     Notes 60     Chapter 5: The Power of Debt Meets Our Ridiculous Tax Code: $5.5 Million Net Worth, $240,000     Income, and $4,000 in Taxes! 61     Some Brief Preliminaries: Income versus Incoming Money 63     The Websters: A Tale That Taxes the Imagination 64     Your De Facto Tax Advisor 76     An Inconvenient Truth 77     How to Pay Almost No Taxes in Retirement: A Few More Examples 78     Everyday Example #5:    Auto    You Not Be Sure You Are Getting the Best Loan? 81     Notes 84     Chapter 6: Risk Matters More Than Return 87     Why Your Personal Risk Tolerance May Not Matter 88     A Simple Understanding of Risk 91     An Overview:    What Time Is It?    95     A Detailed Understanding:    How the Watch Works    97     Proof That Debt Can Reduce Your Risk in Retirement 105     Everyday Example #6: A Lot to Think About? Not Really 107     Notes 109     Part III: How to Get There: A Glide Path     Chapter 7: The World Is Full of Risk   Especially Now 113     Not Your Usual Serious Caution 114     Learning from What Companies Do   Value Liquidity! 114     What about Interest Rate Risk? Fixed versus Floating Rate Debt 117     Investment Risks: It Isn   t the Debt That Matters, It Is the Quality of Your Investment Decisions! 119     Asset Allocation and Investment Considerations 119     A Six  ]Step Approach to Diversified Investing in Retirement 120     Lessons from Math and History Suggest Caution 121     Be Careful What You Watch! 124     My Opinions on Asset Allocation 126     Notes 130     Chapter 8: The Sooner the Better: Moving from Oppressive to Working to Enriching Debt 133     Understanding the Implications of These Ideas for Your Life Plans 138     Getting a Handle on Whether You Should Adopt a Strategic Debt Approach 138     The Need  ]Want  ]Have Matrix 139     Watch Those Ratios! A First Glide Path into Retirement 144     What If You Are Not Optimal Today? 147     Dying with Debt? 147     Final Mortgage Considerations 148     Notes 150     Chapter 9: Conclusion: Lots of Tricks and Tools 151     A Checklist Review 153     Bringing It All Together: A Strategic Debt Strategy in Action 156     A Last Word: The Value of Debt in Retirement 159     Notes 160     Part IV: Guides     Guide 1: Leaving a Legacy 163     General Giving Philosophy 164     The Benefi ts of Giving While You   re Working 167     Giving to Create Income 168     Notes 172     Guide 2: Managing the ROI of Retirement 175     Retirement    ROI   : Resources, Outer Pragmatics, and Inner Dynamics 176     Retirement Is Coming: A Holistic Roadmap of the Territory before You Retire 176     Meta  ]Management against a Background of Accelerating Change 177     Staying Eff ective and Informed over Time 180     Resource Management for the Long Haul 181     Partial Retirement/Partial Income 182     You Can Test  ]Run Retirement 183     Real Estate, Small Business Ventures, and Personal Guarantees 184     Medicare 185     Long  ]Term Care Insurance 185     Thoughts on Life Insurance 187     Reverse Mortgages 187     How You Should (or Should Not) Factor in Inheritance 188     Outer Pragmatics: Real World Concerns, Issues, and Details 189     Legal Planning 191     Medical Planning 192     Residency Planning 192     Life Planning 193     Inner Dynamics: Meaning, Purpose, and Pleasure in Retirement 194     Sharpening the Saw 196     Particular Considerations on Retirement and ROI for the LGBT Community 197     Notes 201     Guide 3: How to Help Your Family and Buy the Stuff You Want and Need: A Reference Guide 203     Act Like a Company/Think Like a CFO 203     Principles When Financing the Purchase of a Desired Item 204     Managing Credit Card Debt 208     Helping Your Kids with Their Credit Card Debt 208     Helping Your Parents 208     Buying a Luxury Car 209     Buying a Boat/Airplane/Art/Antiques/Jewelry, Paying for a Dream Vacation, Financing a Hobby (Horseback Riding, Car Racing) 210     Paying for Fractional Ownership (Home/Plane/Boat) 211     Helping Out Our Kids and Student Loans 212     Homes: Downsizing/Moving/Building 212     Purchasing a Second Home: Pluses and Minuses 213     Rent versus Buy a Second Home 217     One Hundred Percent Financing: The No  ]Down  ]Payment Real Estate Purchase Option 219     Notes 221     Part V: Appendices     Appendix A: About the Companion Website 225     Appendix B: Details for Chapter 4 227     Understanding the Ideas of Chapter 4, with Charts and Tables 227     Notes 234     Appendix C: Chapter 5 Detail 235     Understanding RMDs 235     The Liger at Work Again 237     Understanding Cost Basis and a Step  ]Up in Basis 244     Notes 246     Appendix D: Details for Chapter 6   A Study of Withdrawal Rates in Retirement 249     Background: How the 4 Percent Rule Came to Life 250     Trinity Study Results 251     Trinity Study: Unfortunate Timing 258     Notes 260     Appendix E: A More Detailed Discussion on Risk, Return, and Correlation 263     Notes 266     Appendix F: More Detail on ABLF, Risk Details, and Official Statement of Disclosure and Understanding 267     More Detail on ABLF 267     Statement of Disclosure and Understanding 268     With Respect to ABLFs 270     Additional Important Notes 272     Notes 275     Glossary 277     Bibliography 283     About the Author 287     Index 289