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

LEARN HOW DEBT CAN ACTUALLY REDUCE YOUR RISK IN RETIREMENT!

Through a holistic, balanced approach, financial guru and bestselling author Tom Anderson shows how utilizing sound debt strategies can enable you to:
Increase Your Return   Reduce Your Risk   Lower Your Taxes

Throughout The Value of Debt in Retirement, you will also learn how to:

www.TheValueOfDebtInRetirement.com

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

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.