The United States has an increasingly aging population including baby boomers age 50 to 68 (in 2014). Older adults face unique financial planning challenges. These include making irrevocable decisions about claiming Social Security benefits, selecting Medicare supplement health insurance and long-term care insurance, selecting income-based investments (e.g., annuities), making sustainable retirement asset withdrawals, and calculating required minimum distributions (RMDs) due on tax-deferred savings plans such as traditional IRAs and the Thrift Savings Plan (TSP). This 90-minute webinar will “package” together 15 key later life financial planning topics that older adults and the practitioners who serve them need to understand and address. Topics that will be covered in the webinar include: Common financial errors of older adults Statistics about older adult finances Common later life financial characteristics and required decisions 15 key later life financial planning topics (e.g., creating a retirement “paycheck,” required minimum distributions, untitled property transfers, and leaving a legacy) Personal finance resources for older adults and financial practitioners Participant interaction will include discussing workable financial planning strategies for older adults, older client errors and “blind spots,” older client success stories, and more. Join this live session Sept. 23 at 11 a.m. ET. More info: https://learn.extension.org/events/1653

1. Welcome to the
Military Families Learning Network Webinar
Financial Planning for the
Second Half of Life
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This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture,
and the Office of Family Policy, Children and Youth, U.S. Department of Defense under Award Numbers 2010-48869-20685 and 2012-48755-20306.

2. Financial Planning for the
Second Half of Life
https://learn.extension.org/events/1653#.U9-iT010yM8
Barbara O’Neill, Ph.D., CFP®, AFC, CHC
Rutgers Cooperative Extension
oneill@aesop.rutgers.edu

3. Welcome to the
Military Families Learning Network
Research and evidenced-based
professional development
through engaged online communities.
eXtension.org/militaryfamilies
This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture,
and the Office of Family Policy, Children and Youth, U.S. Department of Defense under Award Numbers 2010-48869-20685 and 2012-48755-20306.

4. Connect with the Personal
Finance Team
Facebook: PersonalFinance4PFMs
Twitter: #MFLNPF

5. For Resources, Recording, and More Information:
https://learn.extension.org/events/1653

6. Dr. Barbara O’Neill
Dr. Barbara O’Neill, financial resource
management specialist for Rutgers
Cooperative Extension, has been a
professor, financial educator, and author
for 35 years. She has written over 1,500
consumer newspaper articles and over
125 articles for academic journals,
conference proceedings, and other
professional publications. She is a
certified financial planner (CFP®),
chartered retirement planning counselor
(CRPC®), accredited financial
counselor (AFC), certified housing
counselor (CHC), and certified financial
educator (CFEd).

7. Webinar Objectives
• Discuss common later life financial decisions
• Discuss common later life financial errors
• Discuss 15 later life financial planning topics
• Discuss relevant research findings
• Discuss personal finance resources for older
adults and financial practitioners

8. “Street Cred”
Extension Specialist in Financial Resource
Management (former county FCS Agent)
•Financial educator and author
•Certified Financial Planner®
•In the second half of my financial life

9. Question #1:
What are Some Major Financial
Concerns in Later Life ?

10. Why Focus on Later Life When
80% of PFMP Clientele are 18-34?
• New topic….haven’t explored much before
• You make better decisions if you “see” your
senior self (Hal Hershfield research:
http://hbr.org/2013/06/you-make-better-decisions-
if-you-see-your-senior-self/ar/1)
• Can inform cautions and warnings to young
adults (e.g., save statements for future capital gains)
• Information may be helpful personally

11. Question #2:
What financial advice would
your current self give your
younger self earlier in life if you
could have done so?

12. Age 50 (+/- 5 to 10 Years)
• Financial “halftime” or “intermission”
• Think about past accomplishments
• Think about what you still want to do
• New challenges and decisions
• Increased interest in “giving something back”
to family, community, charities
• Many people want to simplify/downsize

13. No More Excuses !!!
• I don’t have enough knowledge
• I don’t have enough time
• I don’t have enough money
• I don’t have anyone to help me
• I don’t want to make a mistake

14. Common Financial Errors
of Older Adults:
• Changing investment strategy drastically on a
specific date (e.g., 65th birthday)
• “Forgetting” about effects of inflation
– 3.5% inflation will double costs in 20 years
• Relying too heavily on financial salespeople
• Assuming that estate planning is for “the rich”
• Retiring without considering health coverage
• Not planning for long-term care expenses
• Improper asset withdrawals

15. Increased Financial Complexity
and Major Decisions
• When to start Social Security benefits
• When to retire: how much money is “enough”?
• Where to live in retirement
• Taxation of SS and pension benefits; estimated tax payments
• Purchase of health insurance
• Long-term care planning
• Required minimum distributions (RMDs)
• Estate planning documents

16. A Tale of Three Retirees
• http://www.njherald.com/story/26005492/2014/07/13/a-tale-of-three-
retirees-how-to-maximize-your-nest-egg
• Case #1- 80 and 78, just retiring, $10 million portfolio,
$5 million in tax-deferred plans, no RMDs yet taken
• Case #2- Early 70s couple, just retiring, $600k saved,
even with 6% withdrawal, will take 40% income cut
• Case #3- Mid 60s single parent, $10k saved and not
saving, expects to never retire or move in with adult
child

17. Question #3:
What are Some of Your Later
Life Financial Planning Stories
(Good or Bad)?

18. Research: Wealth Declines
• Overall U.S. median net worth fell 38.8% between 2007 and
2010 Survey of Consumer Finances (SCF)
• $126,400 in 2007 and $77,300 in 2010
• Median household income fell 7.7%
• $49,600 in 2007 to $45,800 in 2010
• Major stock indexes fell almost 50% between 9/07- 3/09
• Yields fell dramatically on liquid and time deposits
• 3-Month CD: 5.46% in 9/07 and 0.28% in 09/10
Federal Reserve Study:
http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf

19. Research: Median Net Worth
• Americans' median wealth is $44,900 per
adult -- half have more, half have less
(average of $301,000 per adult)
• U.S. median net worth is 19th place worldwide
below Japan, Canada, Australia and much of
Western Europe (4th for average net worth)
http://money.cnn.com/2014/06/11/news/econom
y/middle-class-wealth/

20. Research: Lower Retirement
Confidence
• Americans’ confidence in their ability to retire comfortably is at
a low level
• Only 18% of workers are “very confident”
• 64% of workers say they or spouse have saved for retirement
• 60% of workers have savings and investments (excluding
home & DB pension) < $25,000
• 33% of workers expect to retire after age 65; 49% of surveyed
retirees left workforce unexpectedly
2014 Retirement Confidence Survey (RCS):
http://www.ebri.org/surveys/rcs/2014/

21. Research: Increased Life
Expectancy
• More than half of people >45 underestimate how long they will live
• Can result in inadequate provision for retirement savings needs
Reference (Financial Advisor): http://www.fa-mag.com/news/society-of-actuaries-
say-people-underestimate-their-life-spans--11480.html
• Average life expectancy for man reaching age 65 today: Age 83
• Average life expectancy for woman reaching age 65 today: Age 85
Reference (Social Security): http://www.ssa.gov/planners/lifeexpectancy.htm
BEST to use life expectancy calculators with lifestyle questions:
http://www.msrs.state.mn.us/info/Age_Cal.htmls
http://gosset.wharton.upenn.edu/mortality/perl/CalcForm.html

22. Research: Health Care Costs
• Even with Medicare benefits, a 65-year old couple retiring in
2012 will spend at least $240,000 on health care costs during
their retirement
Reference (Wall Street Journal/Fidelity Investments):
http://online.wsj.com/article/SB10001424052702304543904577
394543896250220.html
• A man needs $187,000 and a woman $213,000 to have a
90% chance of having enough money to cover health care
expenses in retirement
Reference (EBRI):
http://www.ebri.org/publications/ib/index.cfm?fa=ibDisp&conten
t_id=4711

23. Research: Long-Term Care Needs
• Americans spent $207.9 billion in LTC services in 2010
• 12% of Americans turning 65 will spend between $25,000 and
$100,000 on LTC expenses and 6% will spend > $100,000
• 7 million LTC policies in force vs. 45 million Medicare enrollees
Reference (Journal of Financial Planning):
http://www.fpanet.org/journal/SeekingAlternativestoLongTermCareInsurance/
• Assisted living expenses vary considerably across the U.S.
• $4,794 per month in New Jersey versus $2,617 in North Dakota
Reference (Wall Street Journal/MetLife):
http://online.wsj.com/article/SB10001424052970203937004578079184108523
030.html

24. Other Interesting Research Findings
• People with wealth and health are more likely to
delay retiring than poor and sick people
Reference (CRR, Boston College):
http://fsp.bc.edu/healthy-wealthy-and-not-retiring/
• Couples lack communication on retirement goals
• 62% on when to retire
• 47% on whether to continue working
• 33% on where to retire
Reference (AAII Journal/Fidelity Couples Retirement Study):
http://www.aaii.com/journal/article/couples-lack-communication-on-retirement-
goals

25. Question #4:
What Research Findings About
Older Adults Have You Read
Recently?

26. 15 Key Financial Second Half
Issues
• Financial basics
• Investing decisions & asset
allocation
• Avoiding financial fraud
• Creating a retirement
“paycheck”
• Required minimum
distributions
• Tax-planning strategies
• Transferring untitled personal
property
• Communication issues about
money
• Getting help and hiring
advisors
• Social Security decisions
• Health insurance
• Long-term care insurance
• Estate planning
• Health-wealth connections
• Leaving a legacy

27. 1. Don’t Forget “The Basics”
• Net Worth Statement
– Summary of assets and debts:
http://njaes.rutgers.edu/money/pdfs/networthcalcworksheet.pdf
• Specific financial goals
– Include a date and cost:
http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf
• Cash flow statement
– Summary of income and expenses
• Emergency reserve
• Financial Fitness Quiz (Check-up):
http://njaes.rutgers.edu/money/ffquiz/

28. BRAND NEW:
Personal Health and Finance Quiz
http://njaes.rutgers.edu/money/health-finance-quiz/
• Believed to be FIRST combined online health
and personal finance behavioral practice
assessment tool; IRB approved at Rutgers
• Provides an assessment of daily actions
taken to improve health and personal
finances

29. Assess Current/Future Insurance
Needs
• Life insurance
• Disability insurance (if employed)
• Health insurance (e.g., Medigap, work)
• Long-term care insurance
• Property insurance
• Umbrella liability

30. 2. Follow Recommended
Investment Strategies
• Don’t invest if you don’t understand
• Diversify (different asset classes and types)
• Invest for long term goals: 5+ years
• Have reasonable expectations
• Buy low-cost investments
• Don’t pay attention to daily market “noise”
• Balance risk and reward
– All investments have some type of risk

31. Ownership Versus Loanership
Investments
• Ownership
Investments:
– Variable
Annuities
– Stocks
– Real Estate
– REITs
– Growth mutual
funds
• Loanership
Investments:
– Fixed Annuities
– Corporate Bonds
– Government Bonds
– Ginny Maes
– Money Market Mutual
Funds
– CDs
– U.S. Savings Bonds

32. Later Life Investing
Need-to-Knows
• Historically, stocks have provided the highest return of any
asset class over the long term
• The trade-off is a higher chance of loss
– Risk-Reward Relationship (pyramid graphic)
• May want to gradually ramp-down stock % of portfolio asset
allocation during retirement
– Traditional guideline: 100 to 115 – age = Percentage in stock
– New research: rising equity glidepath:
http://www.kitces.com/blog/should-equity-exposure-decrease-in-retirement-
or-is-a-rising-equity-glidepath-actually-better/
• Rebalance portfolio regularly

33. More Later Life Investing
Need-to-Knows
• Maximize catch-up contributions if age 50+
– + $5,500 ($23,000 total)- employer plans
– + 1,000 ($6,500 total)- IRAs
• Maximize employer plan matched savings
• Assess your investment risk tolerance
– See www.rce.rutgers.edu/money/riskquiz/
• Must complete plan rollovers in 60 days

34. Later Life Investing
Action Steps
• Consider hiring a professional adviser
– See www.fpanet.org, www.cfp-board.org, and
www.napfa.org for names of local advisers
• Consolidate scattered retirement plans for
easier minimum distribution calculations
• Absent health issues, plan on living at least to
early 90s
• Take advantage of all savings opportunities
before retirement

35. Question #5:
What Other Investing Advice
Do You Have for Older Adults?

36. 3. Avoid Investment Fraud
2011 AARP Study: 4 Behaviors that increase seniors’ risk of
being a fraud victim:
1.Attending “free lunch” seminars
2.Entering drawings and contests for free prizes
3.Reading and accepting junk mail offers
4.Sitting through sales pitches
References: http://assets.aarp.org/rgcenter/econ/fraud-victims-11.pdf
http://www.givemebackmycredit.com/blog/2011/06/aarps-fraud-study-key-
behaviors-that-make-seniors-more-likely-to-fall-victim-to-scams.html

37. Is It Too Good to Be True?
• High yield often means high risk
• Watch out for buzz-words: “guaranteed,” “limited
offer,” “safe as a CD,” or “risk-free”
• Beware of exotic, unusual products
Warning:
If it sounds too good to be true, it probably is!
Get the facts in writing OR hang up/delete
http://www.usa.gov/topics/consumer/scams-fraud/investment.shtml

38. Elder Investment Fraud
Resources
• Video: http://www.youtube.com/watch?v=2WfJfxajucM
• Publications:
– http://www.nasaa.org/1733/eiffe/
– http://www.kiplinger.com/columns/ask/archive/how-to-protect-
parents-from-elder-investment-fraud.html

39. 4. Create a Retirement “Paycheck”
(Income Stream)
• Try to simulate regular income stream
– Annual cash withdrawals (1/12 per month)
– Automated monthly fund withdrawals
– “Laddered” bonds or CDs
– Post-retirement employment
• Earnings limit under FRA: $15,480 (2014)
• Keep tax-deferred investments and Roth IRAs
growing as long as possible

40. How Much Money Can You Take
Out of Savings?
• Draft a budget before you start spending
• Keep an eye on inflation
• Two key factors determine how long savings
will last:
– Your withdrawal rate
– The rate of return on your investments

41. Withdrawal Rate Consensus
• Between 4% of principal, if 50% + in stock
– $4,000 a year if $100,000 saved ($333 per month)
• Lower (e.g., 3%) if conservative investor; also recent
cautions (2.5% withdrawal?) due to low interest rates
– http://www.onefpa.org/journal/Pages/The%204%20Percent
%20Rule%20Is%20Not%20Safe%20in%20a%20Low-
Yield%20World.aspx
– Consider hiring a certified financial planner for 2-3
hours (go prepared with net worth and budget)
• Do a Monte Carlo analysis for probability of not
outliving money

42. You Need $300,000 Saved for Every
$1,000 of Monthly Income
$300,000 x .04 = $12,000 ÷ 12 = $1,000 of monthly
income
$600,000 for $2,000 per month
$900,000 for $3,000 per month
$1.2 million for $4,000 per month
$1.5 million for $5,000 per month

43. That’s Why You Convert
Percentages Into Dollar Figures
• Dollar figures provide a much better
“benchmark” than percentages (too vague)
• More likely to get people’s attention
• People often gasp (at classes) when they see
this illustration
• Did YOU gasp?

44. Retirement “Paycheck”
Need-to-Knows
• Possible income sources include:
Social Security, defined benefit pension plan, defined
contribution plan (e.g., 401(k) and 403(b) plans), individual
retirement accounts (IRAs), annuities, taxable account
investments, post-retirement earnings, home sale proceeds,
rental real estate, reverse mortgage
• When making withdrawals, generally tap taxable
and tax-free investments first, then tax-deferred
employer plans and traditional IRAs (must start
RMDs at age 70 ½), and then Roth IRAs)

45. Retirement “Paycheck”-
More Need-to-Knows
• Long-term capital gain rates if assets held > 1 year
– 0% (10% and 15% tax brackets); 15% (25%, 28%, 33%,
and 35% tax brackets); 20% (39.6% tax bracket)
• Mandatory withdrawals required at age 70½
• No withdrawal penalty after age 59½
• Roth IRA withdrawals are tax free after age 59½ and
if account is open at least 5 years

46. Suggested Investment Strategy
for Older Adults
• Set aside enough $$$ to pay uncovered excess
expenses for 3-5 years in a money market fund or
short-term CD
– (e.g., $30k income - $15k from SS and/or pension = $15k
uncovered expenses x 3-5 years = $45k to $75k in cash)
• Remainder grows in stock & bond funds. Sell stock
shares periodically and add to cash assets
• If stock market tumbles -- hang tough. Tap cash and
bonds and dividends first.

47. Retirement “Paycheck”
Action Steps
• Calculate when you can afford to retire and
how much can be safely withdrawn annually
– Check several online calculators
– Use the “4% rule” as a benchmark
– Seek assistance from a financial advisor
• Save as long as possible in tax-advantaged
investments
– Roth or traditional IRAs
– Tax-deferred employer accounts

48. 5. Take Required Minimum
Distributions (RMDs)
• Applies to distributions from:
– Traditional IRAs (Roth IRAs are tax-free)
– 401(k)s, 403(b)s, 457 plans, SEPs, TSP
• Must begin distributions by April 1 of year following
year one turns 70 1/2
– 70th birthday: 1/3/14; Age 70 1/2: 7/3/14
– Begin distributions by 4/1/15 (drawback: must take
two taxable 2015 payouts if delay)
• Employer plans: must start RMD in the year you stop
working but can delay first RMD to April 1 of year
after one retires (same drawback):
http://www.theslottreport.com/2010/07/im-still-working-whats-my-rmd.html

49. How Much to Take Out
• Required Minimum Distribution (RMD)=
– Balance on Dec. 31 of prior year /Life expectancy
(use factor in IRS uniform distribution table)
– See http://njaes.rutgers.edu/money/ira-table.asp
– Uniform table automatically recalculates life
expectancy (1.9 years if you live to 115!)
– Separate table if spouse > 10 years younger (joint
life expectancy)
• Failure to take RMD: Tax penalty of 50% of the
required distribution (must match or exceed RMD)
• Plan custodian will report account balance numbers to
the IRS

50. Some RMD Examples
• Retiring 80 year old, first RMD due to “Still Working
Exception,” $5 million in tax-deferred employer plans:
RMD divisor of 18.7:
– $5,000,000 ÷ 18.7 = $267,379 taxable RMD
• 70 ½ year old, already retired, taking first RMD, $1
million in tax-deferred plans: RMD divisor of 27.4:
– $1,000,000 ÷ 27.4 = $36,496 taxable RMD
• Be sure to have taxes withheld or make quarterly
estimated payments to the IRS!!!

51. 6. Practice Tax Avoidance
(Minimization)
• Tax-deferred investments
– Employer salary reduction plans
– IRAs
– Annuities (look for low expense providers)
• Age 50+ catch-up contribution
• Long-term capital gain on investment profits
• Good financial records (deductions, capital gains)
• Tax preparer for a “good template”

52. 7. Consider Untitled Property
Transfers
• “Who gets grandma’s yellow pie plate?”
– http://www.extension.umn.edu/family/financial-security/
who-gets-grandmas-pie-plate/
• Consider interests of family members
– Examples: coin collection, antique car
• Make a written list of property and heirs
• Share list with family and executor
• Consider lifetime gifting of property
• Annual gift tax exclusion: $14k per donee (2014)
• Can transfer unlimited amount of property (or cash)
to charity without gift/estate tax liability

53. 8. Communicate With Others
• Ask executor, contingent executor, power of attorney
designee, etc. to serve
• Prepare/share a “financial notebook”
• Share location of key documents
• Discuss burial wishes with family
• Discuss living will issues with proxy
• Prepare letter of last instructions
• Discuss/list personal property bequests
• Discuss disposition of digital assets

54. 9. Get Help When Needed
• CPA for complicated taxes
• Financial planners:
– 888-FEE-ONLY or www.napfa.org (NAPFA)
– 800-282-PLAN or www.fpanet.org (FPA)
– 888-CFP-MARK or www.cfp-board.org (CFP®
Board)
– http://garrettplanningnetwork.com/ (Garrett Network)
• Go prepared to reduce time and fees
– Bring financial statements, list of goals, questions

55. Question #6:
What Other Financial Resources
are Available for Older Adults ?

56. 10. Understand Social Security
• Reduced SS benefits available at age 62
• Full SS benefits at Full Retirement Age (FRA)
– Age 66 if born between 1943-1954
– Age 67 if born in 1960 or later
• Must be “fully insured” with 40 quarters of coverage
(a quarter = $1,200 of earnings in 2014)
• There is no earnings limit after FRA
• Before FRA, $1 of benefits withheld for every $2 over
earnings limit ($15,480 in 2014)

57. Social Security Need-to-Knows
• It is usually wise to postpone SS benefits if:
– You have substantial earnings
– You are in good health
– You do not need the money for current living expenses
• Contact SS about 3 months before retiring (online)
• See www.ssa.gov for general SS information
• See http://www.ssa.gov/myaccount/ for SS benefit
estimate

58. Social Security Action Steps
• Download benefit estimate annually and review for
accuracy: http://www.ssa.gov/myaccount/
• Estimate/calculate percentage of retirement income
coming from Social Security (if retired)
• Do a Ballpark Estimate retirement calculation (if
working) See http://www.choosetosave.org/ballpark/
• Factor Social Security into divorce plans
– Must be married 10 years to qualify on ex-spouse’s record
• Go Direct (direct deposit of SS benefit check)

59. 11. Understand Older Adult
Health Insurance
• Medicare covers people age 65+
• Medicare has 4 parts: A, B, C, and D
• Many beneficiaries buy Medigap policies
• Retiree health benefits are increasingly scarce
• Early retirees must cover health insurance “gaps”
(e.g., between a job and Medicare eligibility)
• COBRA can extend group benefits for 18 mos. OR
those < age 65 can use ACA law exchanges
– See http://www.medicare.gov/ and www.healthcare.gov

60. Health Insurance Action Steps
• Apply for Medicare within 3 months of age +/- age 65
• Pay attention to 60-day COBRA deadlines
• Safeguard health insurance documents
• Inquire about employer retiree benefits, if any
• Contact SHIP (State Health Insurance Assistance Program)
for assistance with purchasing state-licensed
Medigap (Medicare supplement) policies
• www.shiptalk.org

61. 12. Understand Long Term Care
Insurance
• Potential cost of LTC is a big financial risk
• Nearly half of Americans will need LTC at
some point in their lives
• LTC covers a wide range of services
– Nursing home, assisted living, in-home care
• Best time to buy LTC insurance is generally
age 55 to 60
• Adult children help pay premiums?

62. Key LTC Insurance Policy
Features to Look For
• Amount of daily coverage
• Length of coverage (e.g., 3 years, 5 years)
• Types of benefits provided (e.g., home health care)
• Elimination (waiting) period (e.g., 3 months, 6 months)
• Number of activities of daily living or ADLs required to
trigger benefits (e.g., bathing, toileting, eating, dressing)
• Method of making an inflation adjustment, if any
Resource: Financing Long-Term Care (eXtension):
http://www.extension.umn.edu/family/personal-finance/
planning-for-health-care/long-term-care-resource-center/

63. LTC Insurance Action Steps
• Contact SHIP for assistance with purchasing
LTC policies from licensed state providers
• Explore LTC options, including:
– LTC insurance
– “Self-insurance”
– Annuitized income sources (e.g., DB pension, SS,
annuity)
– Continuing Care Retirement Communities

64. LTC Resources
• American Association for Long-Term Care Insurance:
http://www.aaltci.org/
• U.S. Department of Health & Human Services:
www.alzheimers.gov
• Medicare: www.medicare.gov
• Medicaid: www.medicaid.gov
• eXtension/University of Minnesota (Financing Long-Term
Care):http://www.extension.umn.edu/family/personal-finance/
planning-for-health-care/long-term-care-resource-center/

65. Question #7:
How Are You and/or Your Older
Clients Preparing for Potential
Long-Term Care Expenses?

66. 13. Solidify Estate Planning
• Spelling out your wishes (e.g., property transfers) is
a gift that you give to others
• Dying intestate (without a will) may result in
unnecessary hassles and expenses
• Three recommended documents:
– Will for bequests to people and charities and to name
executor(s) and guardian(s)
– Living will for health care decisions with a designated
health care representative
– Durable power of attorney to handle financial affairs while
you are alive

67. Estate Planning Need-to-Knows
• The principal goal of estate planning is to make sure that
assets are distributed as you desire with the least amount of
taxes
• Permanent $5 million inflation-adjusted federal gift and
estate tax exclusion ($5.34 million in 2014) as of 1/13 tax law
• Beneficiary and contingent beneficiary designations should
be reviewed periodically
• See http://njaes.rutgers.edu/money/pdfs/beneficiary-designations.pdf
– Wills and trusts
– Life insurance policies
– Retirement accounts
– U.S. savings bonds

68. Estate Planning Action Steps
• Keep property information in one place
• Let trusted persons know where estate planning
documents are kept
– Worksheet: A Record of Important Family Papers
http://njaes.rutgers.edu/money/pdfs/importantpapers.pdf
• See an attorney to draft or revise documents
• Revise documents as life events require
• Remember, peak decision-making age is 53:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=973790

69. 14. Appreciate Health and Wealth
Cost Linkages
• The “price” of good health is the need for more wealth: Good health
raises (NOT lowers) a person’s lifetime care costs
• Center for Retirement Research (CRR) projections of remaining lifetime
health care costs of couples who reached indicated ages in 2009:
Age Healthy Unhealthy
65 $260,000 $220,000
70 $266,000 $241,000
75 $265,000 $236,000
80 $259,000 $220,000
85 $244,000 $202,000
• More years of out-of-pocket medical bills and an increased risk of chronic
disease (e.g., diabetes) and need for LTC
Reference (CRR, Boston College):
http://money.usnews.com/money/blogs/the-best-life/2010/05/12/good-health-
raises-lifetime-care-costs

70. Take Care of Yourself!
“The greatest wealth is
health”
Virgil
See www.njaes.rutgers.edu/sshw for information about health
and wealth connections
SSHW webinar: https://learn.extension.org/events/1625#.U9_6GE10yM8

71. 15. Leave a Legacy- Give
Something Back
Many ways to “leave a legacy”
– Children and grandchildren
– Creative works (art, books, music)
– Volunteer time helping others
– Charitable gifting
• Testamentary gifts via one’s will (less than 6% of
Americans leave money to charities when they die; 20%
of those who die with wills)
• Outright gifts of cash, property, securities
• Charitable trusts (see an attorney)

72. Helpful Online Resources
• Rutgers Cooperative Extension
– www.njaes.rutgers.edu/money
– www.investing.rutgers.edu
• Social Security Administration
– www.ssa.gov
• State Health Insurance Assistance Program (SHIP)
– www.shiptalk.org
• Planning for a Secure Retirement (Purdue Extension)
– www.ces.purdue.edu/retirement

73. More Helpful Online Resources
• Choose to Save Ballpark Estimate
– http://www.choosetosave.org/ballpark/
• Financial Security in Later Life (USDA)
– www.csrees.usda.gov/fsll
• Retire Well (University of Illinois)
– http://web.extension.illinois.edu/cfiv/eb141/
• Retirement Living Information Center
– http://www.retirementliving.com/taxes-by-state

74. Still More Helpful Online
Resources
• Center for Retirement Research at Boston College
• http://crr.bc.edu/
• Retirement Readiness Rating
• http://www.ebri.org/pdf/surveys/rcs/2000/fact8-r3quiz.pdf
• My Retirement Paycheck (NEFE)
• http://www.myretirementpaycheck.org

75. Question #8:
What Are Some Others Good
Financial Planning Resources
For Older Adults?

76. Don’t Make Assumptions!
Puts people on the defensive; they will feel that
others don’t understand them and tune out

77. Prevention Tips for Millennials
and “Militaryennials”
• Don’t forget the basics (cash flow, net worth, goals)
• Contribute to tax-deferred employer retirement
savings plans NOW (TSP, 403(b), SEP, etc.)
• Select investments for the long term
• Avoid frauds and predatory loans
• Practice tax avoidance/minimization
• Get help when needed (PFMPs, VITA, etc.)
• Prepare basic estate planning documents

78. Prevention Resources for
Millennials and “Militaryennials”
Web Sites
• NEFE-On Your Own: http://www.onyourown.org/
• PBS- Your Life, Your Money:
http://www.pbs.org/your-life-your-money/
• Military Saves: http://www.militarysaves.org/
• Wi$eUp: http://wiseupwomen.tamu.edu/
• Books
• Personal Finance in Your 20s for Dummies (Tyson)
• Get a Financial Life (Kobliner)

79. Questions? Comments?
Experiences?

80. Next Personal Finance Webinar
How to Read a Mutual Fund Prospectus
•Tuesday, October 21, 11 a.m. ET
•1.5 CEUs for AFC-credentialed participants.
•Speaker: Dr. Michael Gutter
•More
information:learn.extension.org/events/1674

81. Military Families Learning Network
Find all upcoming and recorded webinars
covering:
Family Development
Military Caregiving
Personal Finance
Network Literacy
http://www.extension.org/62581
This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture,
and the Office of Family Policy, Children and Youth, U.S. Department of Defense under Award Numbers 2010-48869-20685 and 2012-48755-20306.