Increase the odds you won't run out of money in retirement using debt!
Conventional wisdom is wrong being debt free inretirement may actually increase your risk. The Value ofDebt in Retirement teaches you how incorporating debt into yourretirement strategy may increase your return, lower your taxes andactually lower your risk. You read that right. If handledcorrectly, debt that thing we've all been taught toavoid can play an integral role in your life,especially in retirement. New York Times Best Selling Authorand nationally acclaimed financial expert Tom Anderson shows youhow to use the time tested strategies of the best companies and theultra rich to retire comfortably, minimize taxes, buy the thingsyou have always wanted to have and do the things you have alwayswanted to do.
Thought provoking and against the grain, Anderson explains whyyour risk tolerance doesn't matter, why being debt free mayactually increase your risk and why rushing to pay off yourmortgage may be a financial disaster. Full of shocking revelationsand tricks high- net-worth individuals have used for years, TheValue of Debt in Retirement opens the world to a new approach towealth management in retirement, one that factors in both sides ofthe balance sheet as an integrated ecosystem.
Real-world case studies illustrate how informed debt strategiescan lead to a happier, healthier retirement. See how an individualwith a net worth of more than $5 million can spend $20,000 permonth - after taxes - and pay less than $5,000 per year in taxes,how it is possible to increase your rate of return by 50%, and howa lower risk portfolio with debt could increase the chances you donot run out of money.
Specifically written to Baby Boomers, practical guides andchecklists show how to use debt strategies to fund primary andsecondary properties, refinance credit card debt, and financehobbies, such as cars and boats and recreational vehicles.Additional guides show how you can help your children, help yourparents and leave a bigger legacy for your heirs and favoritecharities. Regardless of your net worth, The Value of Debt inRetirement provides tools to use to apply these concepts toyour personal situation.
There is no free lunch: the book delivers a balanced perspectivefocusing on the potential risks and benefits of the strategiesdiscussed. A discussion on economic history highlights some of theshocks the economy may face and provides important warnings thatyou should factor into your retirement plan. Anderson not onlyshows that your life expectancy may be longer than you think, butalso illustrates that many investors may be on track to averagereturns well under 4% for the next ten years a potentiallydevastating combination. Irrespective of your beliefs about debt,The Value of Debt in Retirement proves risk is moreimportant than return for retirees and provides suggestions on waysto minimize that risk.
Not all debt is good and high levels of debt are bad. TheValue of Debt in Retirement is about choosing the right debt,in the right amounts, at the right time. Perhaps most importantly,this book isn't for everybody. This book requires responsibleactions. If you can't handle the responsibility associated with theideas then this book then it isn't for you. If you need a rate ofreturn under 3% from your investments then you may not need thisbook. But if you can handle the responsibility and if you need areturn above 3%, this book may offer insights into the best (andpotentially only) way to achieve your goals.
Foreword Acknowledgments Introduction Part I: Basic Ideas and Core Concepts Chapter 1: A Better Path A Successful but Controversial Debut The Fifth Indebted Strength Who Can Benefit from this Book? Not Just Millionaires! (But TheyCan, Too) Everyday Example # 1: Immediately Better Credit Card Debt Getting Beyond the ABLF and Focusing on Retirement Notes Chapter 2: Debt in Retirement: Conventional Wisdom, Right andWrong What Some Popular Retirement Books Get Right andWrong About Debt The Good vs. Bad Debt Camp Bach Where We Started: The Irresolutely Against Debt Camp The (Very Small) Sometimes It s Okay to Have Debt Camp Everyday Example # 2: A Bridge Loan over Troubled Quarters Notes Chapter 3: Why and Whether to Adopt a Holistic Debt-InclusiveApproach in Retirement A First Look at the Three Main Types of Debt: Oppressive,Working, and Enriching Seven Rules for Being a Better Debtor In the Company of Longer Life Spans Winging Your Way to a Successful Retirement: The Whole ChickenApproach Everyday Example # 3: A Holistic Business Recipe for Success Notes Part II: The Power of DebtTM in Reducing Taxes,Increasing Return, and Reducing Risk Chapter 4: Returning to the Return You Need Cash Flow and Incoming Money: The Ultimate Key to ResourceManagement You Have to Get Your Numbers Right! Regardless of Your Net Worth: Distributions Are Rarely ConstantOver Time in Retirement How Much Can You Safely Take Out? How You May Be Able to Increase Your Rate of Return How This Is Possible? A Big Picture Overview Risks and Problems Everyday Example # 4: Retiring the Loan Survivor Notes Chapter 5: The Power of DebtTM Meets Our RidiculousTax Code: $5.5 million net worth, $240,000 income and $4,000 intaxes! Some Brief Preliminaries: Income vs. Incoming Money The Websters: A Tale That Taxes the Imagination Your De Facto Tax Advisor An Inconvenient Truth A Few More Examples: How to Pay Almost No Taxes in Retirement Everyday Example # 5: Auto You Not Be Sure You AreGetting the Best Loan? Notes Chapter 6: Risk Matters More Than Return Why Your Personal Risk Tolerance May Not Matter A Simple Understanding of Risk An Overview: What Time It Is A Detailed Understanding: How the Watch Works Proof that Debt Can Reduce Your Risk in Retirement Everyday Example # 6: A Lot to Think About? Not Really. Notes Part III: How to Get There A Glide Path Chapter 7: The World is Full of Risk Especially Now Not Your Usual Serious Caution Learning from What Companies Do Value Liquidity! What about Interest Rate Risk? Fixed versus Floating RateDebt Investment risks: It isn t the debt that matters itis the quality of your investment decisions! Asset Allocation and Investment Considerations A Six-Step Approach to Diversified Investing in Retirement Lessons from Math and History Suggest Caution Be careful what you watch! My Opinions on Asset Allocation Notes Chapter 8: The Sooner the Better: Moving from Oppressive toWorking to Enriching Debt Understanding the Implications of These Ideas on YourLife Getting a Handle on Whether You Should Adopt a Strategic DebtApproach The Want-Need-Have Matrix Watch Those Ratios! A First Glide Path into Retirement What if You Are Not Optimal Today? Dying with Debt? Final Mortgage Considerations Notes Chapter 9: Conclusion: Lots of Tricks and Tools A Checklist Review Brining It All Together A Strategic Debt Strategy inAction A Last Word: The Value of Debt in Retirement Notes Part IV: Guides Guide A: Leaving a Legacy General Giving Philosophy The Benefits of Giving While You re Working Giving to Create Income Notes Guide B: Managing the ROI of Retirement Retirement ROI : Resources, Inner Dynamics and OuterPragmatics Retirement Is Coming: A Holistic Roadmap of the Territory BeforeYou Retire Meta-Management against a Background of Accelerating Change Staying Effective & Informed Over Time Resource Management for the Long Haul Partial Retirement/Partial Income You Can Test Run Retirement Real Estate, Small Business Ventures and Personal Guarantees Medicare Long-Term Care Insurance Thoughts on Life Insurance Reverse Mortgages How You Should (or Should Not) Factor in Inheritance Outer Pragmatics: Real World Concerns, Issues, and Details Legal Planning Medical Planning Residency Planning Life Planning Inner Dynamics: Meaning, Purpose, and Pleasure in Retirement Sharpening the Saw Particular Considerations on Retirement and ROI forthe LGBT Community Notes Guide C: How to Help Your Family and Buy the Stuff You Want andNeed Reference Guide Act Like a Company/Think Like a CFO Principles When Financing the Purchase of a Desired Item Managing Credit Card Debt Helping Your Kids with Their Credit Card Debt Helping Your Parents Buying a Luxury Car Buying a Boat/Airplane Art/Antiques/Jewelry, Paying for a DreamVacation, Financing a Hobby (Horseback Riding, Car Racing) Paying for Fractional Ownership (Home/Plane/Boat) Helping Out Our Kids and Student Loans Homes: Downsizing/Moving/Building Purchasing a Second Home: Pluses and Minuses Rent versus Buy a Second Home 100 Percent Financing: The No Down Payment Real Estate PurchaseOption Notes Part V: Appendices Appendix A: About BetterDebt.com A Resource for MoreInformation Appendix B: Chapter 4 Detail Understanding the Ideas of Chapter 4 with Charts and Tables Notes Appendix C: Chapter 5 Detail Understanding RMDs The Liger at Work Again Understanding Cost Basis and a Step-up in Basis More Detail on ABLF Notes Appendix D: Chapter 6 Detail - Withdrawal Rates inRetirement Background: How the 4% rule came to life The Difference between the Trinity Study and Bengen Trinity Study Results Trinity Study: Unfortunate Timing Notes Appendix E: A More Detailed Discussion on Risk, Return, andCorrelation Notes Appendix F: Risk Details and Official Statement of Disclosureand Understanding Statement of Disclosure and Understanding With Respect to ABLFs Additional Important Notes Notes Glossary Bibliography About the Author Index