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The Value of Debt in Retirement Why Everything You Have Been Told Is Wrong von Anderson, Thomas J. (eBook)

  • Erscheinungsdatum: 27.02.2015
  • Verlag: Wiley
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The Value of Debt in Retirement

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.


    Format: ePUB
    Kopierschutz: AdobeDRM
    Seitenzahl: 336
    Erscheinungsdatum: 27.02.2015
    Sprache: Englisch
    ISBN: 9781119020004
    Verlag: Wiley
    Größe: 2010 kBytes
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The Value of Debt in Retirement


Retirement is wonderful, but it certainly isn't easy. It brings with it many fears, uncertainties, and doubts. You're concerned about your health and wellness, your family and extended family, your financial resources and ability to live the life you have always dreamed about. It brings questions about inner purpose, fulfillment, and, frankly, even the meaning of life.

While retirement is an adventure that you will experience only one time, I have had the opportunity to vicariously experience thousands of retirements. 1 Using my academic, professional, and personal experiences, I have learned tricks and tools that may help you live the retirement of your dreams. I take strategies that the best companies and the ultra-affluent have been using for years and apply them to specific personal situations to create the best possible outcome for clients and their families.

My goal is to reframe the conversation around debt in general and highlight its potential benefits as well as the potential risks of being debt free . I deliver a new way of thinking about your risk tolerance in which your decisions depend on your needs. In doing so you will see why I care virtually nothing at all about your "risk tolerance." What I do care about are your needs and the best way to accomplish your goals and objectives. If you need a low amount of income-less than a 3 percent return-from your portfolio, you may not need to embrace a debt strategy. For example, if you have $1 million and need less than $30,000 per year in income from your portfolio, then you may have little need for debt. However, if you need a return between 4 and 6 percent, it's quite likely that you can benefit from debt. If you need a return of more than 6 percent, I recommend that you pay very, very close attention to this book. It may be the only way that you will be able to achieve your goals.

It is my opinion that the investment process traditionally used by professionals and "do-it-yourself" investors alike is broken. It is missing half of the picture! Too many people guess with respect to debt-they don't have a strategy. I often find that if they do it isn't well thought out or comprehensive. Generally it is as simple as "pay it all off as fast as possible." It is time that we consider, as companies do, debt to be a tool and open 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.

Equally important is that regardless of your beliefs with respect to debt, I want you to have a different understanding of the word "risk" and for you to think about risk differently. Many baby boomers have undersaved for retirement and are making decisions that mathematically make it virtually impossible for them to be successful. In this book I put the greatest care in examining trade-offs. I provide you with tools to compare and contrast different risks. For example, it may turn out that being debt free is great for you. It may also turn out that being debt free in fact considerably increases your risk. My goal is knowledge and empowerment around the risks we all face.

Part I of this book lays the foundation and discusses "why" you should consider the use of strategic debt in retirement. I begin with a discussion of the benefits of strategic debt. Chapter 2 provides an overview of conventional wisdom, what authors are currently saying about debt, and why it might be time for a new approach. Chapter 3 outlines the different types of debt-oppressive, working, and enriching-and establishes the seven rules for being a better debtor. It also discusses the impact of longer life expectancy on retirement planning. The longer our expected retirement, the more important it is that our money lasts for us, which means it's even more important that we take a holistic approach to personal financial management that

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