Retirement: How to Achieve

Your Financial Goals

Preparing for Retirement

• Discuss your options

• Prepare personal data record• Obtain support and advice

How to Live on Less

• Invest wisely– Equities– Reinvest

• First tap taxable accounts

How to Live on Less

• Reduce housing costs– Downsize– Seek a lower cost of living

• Trim expenses now• Be creative• Reverse your mortgage

How to Live on Less

• Lower leisure expenses

• Get a job

• Reduce healthcare costs– Medicare– Generic drugs

Know Retirement Plan Options

• Defined benefit plan– Specified monthly benefit– Federally protected

• Defined contribution plan– No specified benefit– Value fluctuates

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

How Do Variable Annuities Work?

• Issued by insurance company– Carefully review prospectus– Compare benefits/costs– Check investments

How Do Variable Annuities Work?

• Characteristics of variable annuities– Periodic payments– Death benefit– Tax-deferred

• Tax-free 1035 exchanges

Where Will You Live?

• Will you move?

• Consider lifestyle questions

• Consider privacy issues

Where Will You Live?

• Assisted-living facilities– Primarily social– Licensed or unlicensed– Wide cost range

• Nursing homes– Primarily medical care– Expensive

Long-Term Care Insurance• Purchase before 60-years-old

• Consider benefit/elimination periods

• Consider costs and

• Check benefit payout rate

Understanding Medicare

• Most people eligible at 65

• Two parts– Hospital insurance– Medical insurance

• Medicare Advantage

• Prescription drug benefit

Understanding Medicare

• Medicare Part A– Covers hospitalization– Requires no premium at age 65– Eligibility

Receiving Social Security Or worked for government

Understanding Medicare

• Medicare Part B– Covers other medical costs– Requires premium

• Medicare Part C

Understanding Medicare

• Medicare Part D– Requires premium– Pays 75% of initial drug costs– Has a gap– Pays 95% over $5,100

Understanding Medicare• Some expenses not covered

– Physical exams– Dental care– Hearing aids– Eye care– Custodial care

Understanding Medicare• Medicare HMOs

• Other considerations– Benefits and costs– Doctors and hospitals– Quality of care

Plan Ahead for Health Care

• Living will

• Durable power of attorney

• Do Not Resuscitate order

Handling Disposition of Estate

• Estate planning– Minimizes tax consequences– Needed if worth $1.5 million or

more– Ensures how assets are disposed

Reducing Taxes on Your Estate

• Make annual gifts• Shield property• Use trusts• Make charitable gifts• Fund a life insurance trust

Rapacki + Co. PA CPAsPlease contact us to discuss one

or more of these issues.Tel 888-RAPACKI