The Retirement Guide: A Comprehensive Handbook on Aging, Retirement, Caregiving and Health - How to Plan and Pay for it

307 Pages·2002·11.89 MB·English

by  Michael Midlam

The
Retirement
Guide
This page intentionally left blank
The
Retirement
Guide
A Comprehensive Handbook on Aging,
Retirement, Caregiving and Health:
How to Plan and Pay for it
Michael S. Midlam
Jill O'Donnell,
Graham McWaters
and John A. Page
INSOMNIAC PRESS
Copyright © 2004 by Michael S. Midlam, Jill O'Donnell, Graham McWaters,
and John A. Page
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system or transmitted, in any form or by any means, without the
prior written permission of the publisher or, in case of photocopying or other
reprographic copying, a license from Access Copyright, 1 Yonge Street, Suite
1900, Toronto, Ontario, Canada, M5E 1E5.
Cover and interior design by Marijke Friesen
Library and Archives Canada Cataloguing in Publication
O'Donnell, Jill, 1940-
The retirement guide : a comprehensive handbook on aging, retirement,
caregiving and health : how to plan and pay for it / Jill O'Donnell, Graham
McWaters, Michael S. Midlam, John A. Page.
Includes index.
ISBN 1-894663-79-9
1. Retirement income—United States—Planning. 2. Retirement—United
States—Planning. I. McWaters, Graham, 1956- II. Page, John A., 1946- III.
Title.
HQ1063.2.U6O36 2004 332.024'01 C2004-903947-4
The publisher gratefully acknowledges the support of the Canada Council,
the Ontario Arts Council and the Department of Canadian Heritage through
the Book Publishing Industry Development Program.
Printed and bound in Canada
Insomniac Press
192 Spadina Avenue, Suite 403
Toronto, Ontario, Canada, M5T 2C2
www.insomniacpress.com
DISCLAIMER
The material in this book is provided for general information
and is subject to change without notice. Every effort has been
made to compile this material from reliable sources. This material
is not intended to provide, and should not be construed as
providing individual financial, investment, tax, legal, accounting,
or medical advice. If legal advice or other expert assistance is
required, the services of a qualified professional should be
sought.
Every effort has been made to use current information as of
the date of publication.
Commissions, trailing commissions, management fees, and
expenses may all be associated with mutual fund invest-
ments. The indicated rates of return are the historical annual
compounded total returns including changes in unit/share
value and reinvestment of all distributions/dividends. They do
not take into account sales, redemption, distribution or optional
charges or income taxes payable by any security holder that
would have reduced returns. Mutual funds are not guaranteed,
their values change frequently and past performance may not
be repeated. Please read the prospectus and consult a financial
advisor before investing.
This page intentionally left blank
TABLE OF CONTENTS
INTRODUCTION 11
Part I: Life Planning
1 GROWING OLDER 19
Personal Responsibility, Attitude, Relationships, Your Inner Self
2 YOUR LIFE PLAN 25
Who Are You?, Reflecting on Your Life, Aiming for Balance, Following
Your Dreams, Prioritizing, Writing Your Mission Statement, Setting
Goals, Being Well Informed, Analyzing Your Situation, Devising Your
Strategy, Putting Your Plan into Action
3 BODY AND MIND 39
Staying Healthy, Keeping Active, Eating Properly, Practicing
Moderation, Seeing Your Doctor, Managing Stress, Staying Safe and
Secure, Using Your Mind, Companionship, Appearance, Learning,
Working, Sharing
4 WHERE WILL You HANG YOUR HAT? 51
Making the Right Choice, Staying in Your Own Home, Remaining
Independent, Adapting Your House, Some Factors for Homeowners to
Consider, Buying a Condominium, Continuing Care Retirement
Communities, Renting an Apartment or Condominium, Senior's
Communities, Retirement Homes, Finding the Right Fit, Moving in
with Family, Long-Term Care Facilities, Planning the Move
5 THE TIES THAT BIND 67
Parent-Child Relationships, Communicating across Generations,
Planning Together, Communicating With Family Members, Factors That
Can Impair Communication, Selling the Family Home, Bequests and
Legacies, Second Marriages and New Relationships, Financial Problems,
Living with Adult Children, Differences in Attitudes and Beliefs
6 PUTTING YOUR LEGAL HOUSE IN ORDER 81
Role of Professionals, Types of Powers of Attorney, Living Wills or
Directives, Consent to Treatment, Adult Guardianship,
Compensation, Wills and Trusts, Mental Capacity, Selecting an
Executor: Factors to Consider, Compensation for Estate
Administration, Bequests and Legacies, Family Law Issues,
Prenuptial Agreements, Family Law Obligations
7 THE FINAL EXIT 95
Cremation, After Cremation, Earth Burial, Burial Vault, Caskets and
Containers, Funeral Service, Memorial Service, Location of the
Service, Church Funeral, Graveside Service, Funeral Home Chapel
Service, Non-Religious Service, Pre-Planning Your Funeral, Funeral
Trust
Part II: Caregiving
8 BEING A CAREGIVER 109
Are You Equipped for Caregiving?, Attitudes, Being Partners,
Responsibilities, Being Informed, Making Decisions, Workplace
Concerns, Stress, Feelings Related to Caregiving, Coping with Anger
and Frustration, Family Involvement, Taking Care of Yourself
9 PROVIDING CARE 125
Identifying Age-Related Changes, How to Cope, Assessing Needs,
Informal Support Systems, Formal Support Systems, Locating Support
Services, Local Community Information Center, Government Services,
Telephone Book & Yellow Pages, Internet, Consulting Services, Hiring
Staff, Senior Abuse, Problem Solving, Loneliness, Finding a New Home,
Dealing with Doctors, Lawyers, and Financial Advisors, Driving,
Creating a Safe Environment, Distance Caregiving, What is a Geriatric
Care Manager, Who needs a Geriatric Care Manager
10 COPING WITH DEMENTIA 147
Causes and Development, Diagnosing Dementia, Progressive
Changes to Expect, Communication, Aggressive Behavior, Hygiene,
Meal Times, Wandering, Nighttime Concerns, Safety Measures, Legal
Matters, Activities for Seniors with Dementia, Music and Dance,
Photographs, Walking, Reading
Part III: Financial Planning
11 WHY PLAN? 161
Objectives of Financial Planning, Why People Don't Plan Financially
12 YOUR FINANCIAL PLAN 169
Principles of Financial Planning, The Role of a Financial Advisor,
Steps in Financial Planning, 1. Goals and Objectives, 2. Information, 3.
Analysis, 4. Financial Strategy, 5. Action Plan, 6. Decisions for Action,
Review and Update
13 BOOSTING THE BOTTOM LINE 183
Principles of Cash Management, Minimizing the Cost of Your Chosen
Lifestyle, Avoid Non-Deductible Debt, Maximizing After-Tax
Discretionary Income, Deduct, Defer, Diminish, Divide
14 MAKING YOUR MONEY GROW 195
Types of Investment, Debt (Fixed-Income) Investments, Equity
Investments, Risk, Inflation, Variability, Comparing the Risks, Other
Components of Risk, Managing Risk and Prospering, Diversification,
Ways to Diversify, Maintaining a Model Asset Allocation, Contrarian
Investment Approach, Due Diligence, Investment Management
Points to Remember
15 PROTECTING YOURSELF AND YOUR FAMILY 209
Principles of Risk Management, What Are the Risks?, Disability,
Critical Illness, Need for Long-Term Care, Premature Death, Are You
Covered?, Capital Analysis in the Event of Death, Capital Analysis in
the Event of Need for Long-Term Care
16 PLANNING YOUR ESTATE 227
Common Goals of Estate Planning, Estate Planning in General