Value of Debt in Retirement - Why Everything You Have Been Told Is Wrong

Increase the odds you won't run out of money in retirement - using debt!
 
Conventional wisdom is wrong - being debt free in retirement may actually increase your risk. The Value of Debt in Retirement teaches you how incorporating debt into your retirement strategy may increase your return, lower your taxes and actually lower your risk. You read that right. If handled correctly, debt--that thing we've all been taught to avoid--can play an integral role in your life, especially in retirement. New York Times Best Selling Author and nationally acclaimed financial expert Tom Anderson shows you how to use the time tested strategies of the best companies and the ultra rich to retire comfortably, minimize taxes, buy the things you have always wanted to have and do the things you have always wanted to do.
 
Thought provoking and against the grain, Anderson explains why your risk tolerance doesn't matter, why being debt free may actually increase your risk and why rushing to pay off your mortgage may be a financial disaster. Full of shocking revelations and tricks high- net-worth individuals have used for years, The Value of Debt in Retirement opens the world to a new approach to wealth management in retirement, one that factors in both sides of the balance sheet as an integrated ecosystem.
 
Real-world case studies illustrate how informed debt strategies can lead to a happier, healthier retirement. See how an individual with a net worth of more than $5 million can spend $20,000 per month - 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 how a lower risk portfolio with debt could increase the chances you do not run out of money.
 
Specifically written to Baby Boomers, practical guides and checklists show how to use debt strategies to fund primary and secondary properties, refinance credit card debt, and finance hobbies, such as cars and boats and recreational vehicles. Additional guides show how you can help your children, help your parents and leave a bigger legacy for your heirs and favorite charities. Regardless of your net worth, The Value of Debt in Retirement provides tools to use to apply these concepts to your personal situation.
 
There is no free lunch: the book delivers a balanced perspective focusing on the potential risks and benefits of the strategies discussed. A discussion on economic history highlights some of the shocks the economy may face and provides important warnings that you should factor into your retirement plan. Anderson not only shows that your life expectancy may be longer than you think, but also illustrates that many investors may be on track to average returns well under 4% for the next ten years - a potentially devastating combination. Irrespective of your beliefs about debt, The Value of Debt in Retirement proves risk is more important than return for retirees and provides suggestions on ways to minimize that risk.
 
Not all debt is good and high levels of debt are bad. The Value 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 responsible actions. If you can't handle the responsibility associated with the ideas then this book then it isn't for you. If you need a rate of return under 3% from your investments then you may not need this book. But if you can handle the responsibility and if you need a return above 3%, this book may offer insights into the best (and potentially only) way to achieve your goals.

Sommario

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 Worki

Info autore

THOMAS J. ANDERSON worked in investment banking in New York before moving into private wealth management. He has his MBA from the University of Chicago and a B.S.B.A. from Washington University in St. Louis. His extensive academic studies at some of the top schools in finance and economics, international experiences, and institutional background deliver a unique perspective on global markets. He has been recognized as one of the top 40 advisors under 40 by On Wall Street magazine and four times by Barron's magazine as one of America's Top 1,000 Advisors: State by State. Tom lives in Chicago with his wife and three children.

Riassunto

Increase the odds you won't run out of money in retirement using debt! Conventional wisdom is wrong being debt free in retirement may actually increase your risk.

Dettagli sul prodotto

• Autori: Anderson, Thomas J Anderson, Thomas J. Anderson, Anderson Thomas J.
• Editore: Wiley, John and Sons Ltd
• Lingue: Inglese
• Formato: Copertina rigida
• Pubblicazione: 24.04.2015
• EAN: 9781119019985
• ISBN: 978-1-119-01998-5
• Pagine: 336
• Categorie: Guide e manuali > Diritto, professione, finanze; Scienze sociali, diritto, economia > Economia > Economia aziendale; Personal finance, Finanzwesen, fremdkapital, Private Finanzplanung, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen, Personal Finance / Financial Advising, Private Finanzen / Beratung