AARP Retire Secure! E-Book

James Lange

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 544

Veröffentlichungsjahr: 2011

Beschreibung

AARP Digital Editions offer you practical tips, provensolutions, and expert guidance. A comprehensive and easy-to-understand guide to maximizing thebenefits of IRAs and retirement assets. Retire Secure, SecondEdition offers unbeatable recommendations for addressing the #1fear facing most readers: Running Out of Money. Retire Secure,Second Edition also shows baby boomers nearing retirement how theycan save tens of thousands to over one million dollars by payingtaxes later. This practical guide delivers straight forwardaccumulation and distribution strategies for IRAs, Roth IRAs, thenew Roth 401(k) and other retirement plans. More specifically,Lange gives readers tips on how to prepare for expected tax changesin 2010, details on converting to Roth IRAs, New Roth 401(k) andRoth 403(b) rules, and when IRA and retirement plan owners shouldconsider second to die life insurance. Further, this book describesLange's exceptional estate plan--a plan that has been featured inThe Wall Street Journal and many other fine financial journals.This definitive guide enjoys glowing endorsements from CharlesSchwab, Larry King, Ed Slott and 60 other financial authors andexperts.

Leseprobe

MAKING YOUR MONEY WORK FOR YOU

Maybe you’re thinking it’s time to review your investment strategy and make the most of the money you have today. Maybe you’ve already built a financially successful retirement egg and want to protect what you’ve built. Or maybe you need to bulk up your earnings to ensure your family’s future.

Welcome to money for grown-ups. Where do you turn for credible information?

Dedicated to helping you protect your assets, stretch your dollars, and bolster your longterm security, AARP can offer you powerful solutions. Whatever your strategy for managing money, we’ve got suggestions that will help – from saving money on that next big purchase to planning your charitable giving. If you’re taking your job to the next level or building up a second career, we’ve got strategies that will help you make your mark.

You may think your money — or your financial advisor — should be working harder for you. You may be watching market trends and seeing new opportunities. And, of course, you want to protect yourself and your loved ones from scams and data breaches. We can give you the support you need.

And turn to us for fun, too. (Is it time for that car, that trip, that weekend home you’ve always wanted?) Because that, too, is what this time of your life is about.

AARP is a nonprofit, nonpartisan membership organization that helps people 50 and older improve their lives. For more than 50 years, AARP has been serving our members and society by creating positive social change. AARP’s mission is to enhance the quality of life for all as we age; lead positive social change; and deliver value to members through information, service and advocacy. This information in this book is for educational purposes and does not constitute financial advice.

Table of Contents

Praise

Title Page

Copyright Page

Foreword

Acknowledgements

How to Read This Book

What Retire Secure! Doesn’t Cover

Additional Resources for the Reader

A Note Specifically for Financial Professionals

The Big Retirement Question

A Summary of Tax Reduction Strategies

The Clear Advantage of IRA and Retirement Plan Savings during the Accumulation Stage

Spend Your After-Tax (Nonretirement or Non-IRA) Money First during the ...

My Best Advice—Read This Book

An Outline Overview of the Whole Process

What’s New!

Consider Establishing a One-Person 401(k) Plan

Roth IRA Conversions Available to Everyone in 2010

The New Roth 401(k) and Roth 403(b)

All Non-Spouse Beneficiaries of an IRA May Be Entitled to the “Stretch” ...

Unexpected Roth IRA Conversion Opportunities for Non-Spouse Beneficiaries of ...

Direct Roth IRA Conversion from 401(k) and 403(b) Plans

Introduction

Part One - THE ACCUMULATION YEARS

Chapter 1 - Fund Retirement Plans to the Maximum

Why Contributing the Maximum to a Retirement Plan Is So Valuable

Make Those Nonmatched Contributions to Retirement

The Employer Matching Retirement Plan

Two Categories of Retirement Plans

How Many Plans Are Available to You?

How to Minimize Your Life Insurance Costs to Maximize Your Retirement Contributions

When You Think You Can’t Afford to Make the Maximum Contributions

Chapter 2 - Traditional IRAs versus Roth IRAs

What Is the Difference between an IRA and a Roth IRA?

Nondeductible IRA Contributions

What Makes a Roth IRA So Great When Compared with a Traditional IRA?

Roth IRA Eligibility Rules

Traditional IRA Eligibility Rules

Contribution Limits for Both Roth and Traditional IRAs

Should I Contribute to a Traditional Deductible IRA or a Roth IRA?

The Effect of Lower Tax Brackets in Retirement

Comments on Your Actual Tax Brackets: A Subtle Point for the Advanced Reader

Chapter 3 - Traditional 401(k)s and 403(b)s versus Roth 401(k)s and Roth 403(b)s

What Are Roth 401(k)s and Roth 403(b)s?

How Do Roth 401(k)/403(b) Accounts Differ from a Roth IRA?

Advantages and Disadvantages of Roth 401(k)/403(b) Contributions

Availability of the Roth 401(k)/403(b)

Choosing between the Roth and Traditional 401(k)/403(b)

Additional Advantages for Higher Income Taxpayers

Effects of a Higher Liquidation Tax Rate

What if Your Tax Rates Drop in Retirement?

A Higher Liquidation Rate May Be Appropriate

Extremely Lower Tax Brackets in Retirement

Higher Liquidation Rates Should Again Be Considered

What if You Need the Money, Not Your Heirs: Spending Down the Roth 401(k)

Conclusion

Making It Happen

Part Two - THE DISTRIBUTION YEARS

Chapter 4 - Optimal Spending Strategies for Retirees

Which Assets Should I Spend First?

Chapter 5 - Minimum Required Distribution Rules

Eventually Everyone Must Draw from Retirement Savings

Calculating Your MRD after Age 70½

Timing Your First Required Distribution

Special Rule for Qualified Plan Owners Who Are Still Working Past Age 70½

Special Rule for 403(b) Participants

When Should You Schedule Taking Your MRD?

Chapter 6 - Should You Transfer Your 401(k) Account to an IRA at Retirement?

Rolling Over to an IRA

Tax Advantages of Transferring a Company 401(k) (or Other Retirement Plan) into ...

Investment Reasons to Transfer to an IRA or to a One-Person 401(k)

Advantages of Leaving the Money Where It Is

Music to the Ears of a CD Investor

Weighing the Investment Advantages versus the Threat of Income Tax Acceleration

My New Recommendation: The One-Person 401(k) Plan

Additional Advantages of Retaining a 401(k) Rather Than Rolling into an IRA

Combining Distribution Options

Lump-Sum Distribution

Ten-Year Averaging Is a Hellish Calculation

The Mechanics of IRA Rollovers and Trustee-to-Trustee Transfers

What You May Roll Over and What You May Not

Special Exception for 403(b) Owners with Pre-1987 Balances

Inexact Language on a Beneficiary Form Can Spell Disaster

Choosing an Investment Institution after the Death of the IRA Owner

Chapter 7 - Roth IRA Conversions

Roth IRA Conversions: A Proactive Strategy to Benefit You and Your Heirs

A Series of Small Conversions Rather than One Big Conversion

Who Qualifies for a Roth IRA Conversion?

2010 Will Provide a Great Opportunity for Higher Income Taxpayers to Move into ...

Factors to Consider before Converting to a Roth IRA

Roth IRA Advantage to the Beneficiary

The Downside of a Roth IRA Conversion

Chapter 8 - Annuitizing Your Financial Accumulations

What Is Annuitizing?

Payment Schedules

Annuitizing: A Conservative Strategy?

Annuitizing Retirement Accumulations

Annuitizing Has Worked Out Well for Many Investors

Annuitizing: A Risky Strategy?

A Variation on the Annuity Theme: The Longevity Annuity

Special Idea: Using Annuities for Spendthrift Children

Protection from Creditors

Chapter 9 - Withdrawing Retirement Plans Funded with Company Stocks and Net ...

What Is NUA, and Why Should I Care?

Part Three - ESTATE PLANNING

Chapter 10 - Eddie and Emily: A Retirement and Estate Planning Case Study

Eddie and Emily’s Retirement and Estate Planning Issues

Retirement Planning

Calculating the Minimum Required Distribution (MRD)

Estate Planning

Conclusions

Chapter 11 - How to Reduce Your Federal Estate Tax Burden

Defining Estate and Gift Taxes

Avoiding Estate and Gift Taxes

How You Can Save Millions without Spending a Nickel on Attorney Fees: The ...

Different Types of Gifts

Gift Taxes

Freezing the Lifetime Gifting Exclusion at $1 Million

The Importance of Having After-Tax Dollars to Pay Taxes and Expenses

Why Should I Care about the Applicable Exclusion Amount if I Have Less Than $7 ...

The Dreaded Double Tax on IRA Assets at Death

Simultaneous Death

The Exemption Equivalent Amount Trust (The B Trust, the Unified Credit Trust, ...

The Nastiest Trap of All

What If Retirement Assets Will Fund the Trust? Yuck!

Chapter 12 - The Most Certain and for Many the Best Way to Provide Financial ...

Understanding the Basics of Gifting with Survivorship Life Insurance

Problems Facing Retirees That Can Be Solved Using a Survivorship Insurance Policy

The Advantages of Survivorship Life Insurance

Alternatives to Letting a Survivorship Policy Lapse

Disadvantages of Second-to-Die Insurance

Lower Risks of Investments with Survivorship Life Insurance

Advantages of Survivorship Insurance if Estate or Inheritance Taxes Are Due

The Best Funds for Paying the Insurance Premiums

Significant Advantages Even with No Federal Estate Tax

Small or Large Estates without Federal Estate Tax Produce Similar Advantages

Different Amounts of Death Benefits

Advantages Are Greater in a Time of Lower Investment Returns

Case Study with Health Risk Factors

Three Ways to Make the Second-to-Die Life Insurance Even More Beneficial

Summary of Indicators That Survivorship Life Insurance Should Be Considered

Chapter 13 - Laying the Foundation for Estate Planning

What Is a Stretch IRA?

Who Can Inherit an IRA?

Spousal Beneficiary Who Chooses the Spousal Inherited IRA Option

Compromise Solution

What if the Younger Spouse Dies First?

Technical Requirements for a Trust to Get the Stretch IRA Treatment

Chapter 14 - Using Disclaimers in Estate Planning

How Disclaimers Work

Avoid This Mistake

Advantages of Disclaimers

Comparing the Disclaimer Approach to a Traditional Approach

The Problem of Estate Planning in a Nutshell

Chapter 15 - The Ideal Beneficiary Designation of Your Retirement Plan

Critical Information: A Will or Living Trust Does Not Control the Distribution ...

How the Plan Works

The Ultimate Cascade of a Very Flexible Plan

Are People Happy with Lange’s Cascading Beneficiary Plan?

What if the Federal Estate Tax Laws Are Repealed?

Chapter 16 - Changing Beneficiaries for Retirement Plans and IRAs

A Caution

Filling Out the Forms

Complex Designations: Incorporating the Perfect Cascade

One Consolidated Group Trust versus Individual Trusts for Grandchildren

The Hazards of Naming Different Beneficiaries for Different Accounts

Submitting the Forms

Chapter 17 - Trusts As Beneficiaries of Retirement Plans

Protecting Young Beneficiaries

The Mechanics of Naming a Minor’s Trust as Beneficiary

Perils of a Trust That Doesn’t Meet the Five Conditions

Spendthrift Trusts

True Story Ensuring the No-Good Son-in-Law Gets Nothing

Unified Credit Shelter Trust, or B Trust, as Beneficiary

The QTIP (The A Trust of the A/B Trust)

An Alternative Solution to the QTIP

Chapter 18 - How Donors Can Do Well by Doing Good

Charitable Lifetime Planning with IRAs

Charitable Estate Planning with IRA and Retirement Assets

A Simple Example of Which Dollars to Leave to Charity

Charitable Trusts in General

Alternatives to Charitable Trusts

Chapter 19 - A Point-by-Point Summary of the Whole Process

Thank You, Readers

Appendix: Life Expectancy Tables

About the Author

Index

Additional Praise forRetire Secure!

“Retire Secure! is a very practical investment guide on how to defer taxes and efficiently plan for retirement and your estate.”

—Roger G. Ibbotson Professor, Yale School of Management Chairman, Ibbotson Associates

“Keeping your investment expenses low and following Jim Lange’s tax savings strategies are the surest routes to a comfortable retirement.”

—Burton G. Malkiel Professor of Economics, Princeton University Author, A Random Walk Down Wall Street

“Jim Lange’s book is a must in the retirement library of anyone with a large IRA. Not only does it provide thorough coverage of a difficult topic, but it does so with crisp writing, surrounded with charts and tables to help you understand your options. I wholeheartedly recommend Retire Secure! ”

—Robert S. Keebler, CPA Author, Educator

“Everyone planning for retirement should read this book.”

—Dr. Allan Meltzer Political Economy Professor, Carnegie Mellon University

“Written for the sophisticated and successful layperson (and a great guide for professionals working in this field), Retire Secure! is like a master class in the subject with the instructor taking the student by the hand through each step of the process. Jim Lange, a practicing CPA and attorney, provides key real-world questions and answers—as well as numerous examples, illustrations, and practical sidebar comments.”

—Stephan R. Leimberg CEO, Leimberg Information Services, Inc. (LISI)

“Retire Secure! shows how to maximize retirement income while explaining IRA and retirement plan rules in language you can understand (and that is no easy task). Every retiree should read James Lange’s chapter on optimal spending strategies for retirees.”

—Gregory Kolojeski President, Brentmark Software Editor, www.rothira.com

“There are few areas of financial planning more complex than making decisions about retirement plans. Retire Secure! not only explains many of these issues in plain English, but provides the reader with common sense guidance in making choices. As advocates of the important role that philanthropy plays in raising financially responsible children, we especially appreciate the inclusion of a chapter on charitable estate planning with IRA and retirement assets.”

—Eileen Gallo, PhD and Jon Gallo, JD Authors, Silver Spoon Kids and The FinanciallyIntelligent Parent

“Jim Lange has updated and improved his material in the second edition of this fine book. I have always said that the planning comes before the doing. He tells you how to plan your retirement, maximize your wealth, and minimize your taxes.”

—Garry D. Kinder, CLU, RFC Author, Lecturer, and Financial Industry Consultant The KBI Group

“IRA and other retirement plan assets comprise a huge and growing component of so many people’s wealth, yet the growth of these important assets requires sound, practical, and, most important, understandable advice. All had been lacking until the publication of this excellent book, Retire Secure!, by James Lange. James brings to the fore practical information usable by both attorney and accountant on how to deal with these critical assets. Topics that he delves into, including using trusts to protect beneficiaries are topics that few lay people are aware of and most professionals don’t address. Protect yourself and your family with the insightful comments of Retire Secure!”

—Martin M. Shenkman, Attorney Author, Inherit More

“This new version of Retire Secure! is even better than the first. It shows you more great ideas to help you achieve the most important financial goal of your life. Make your money last and go further than you ever thought possible.”

—Brian Tracy, Speaker, Sales Trainer Author, Getting Rich Your Own Way

“Retire Secure! is highly recommended reading for all practitioners in the estate and retirement planning field, as well as for those brave souls who take this task on as a do-it-yourself project.”

—Jack Gargan, Founder International Association of Registered Financial Consultants Author, The Complete Estate Planning Guide

“The flexible Lange’s Cascading Beneficiary Plan offers a practical solution to the bewildering array of qualified retirement options, many of which are improperly used. Jim’s book makes a valuable contribution to the field of personal finance—for both the consumers and the professional advisors who serve them!”

—Edwin P. Morrow, CLU, ChFC, CFP, CEP, RFC Chairman and CEO International Association of Registered Financial Consultants (IARFC)

“Jim created the most flexible and effective estate guide for IRA and retirement plan owners.”

—Charles “Tremendous” Jones, RFC Author, Life Is Tremendous

“Retire Secure! should be in everyone’s home who has money to invest. It is well written in language that anyone can understand. I plan to make this book available to my children and grandchildren to read.”

—Frank Thomas Former Pittsburgh Pirate (286 home runs)

“If taxes were the only consideration in financial planning, I’d give James Lange, JD, CPA, a 100 percent grade! Every financial advisor ought to have a copy of Retire Secure! at his or her fingertips, plus copies to give more serious clients. After clients have been taught how to save and where to place their investments, James Lange’s book is the definitive answer to the very important tax considerations.”

—Vernon D. Gwynne, CFP, RFC Chairman Emeritus, and Former Director of International Association for Financial Planning (now Financial Planning Association)

“James Lange is a genius at making the most difficult subject of estate/retirement planning easy to understand. His book is an absolute must for anyone who wants the peace of mind that comes from knowing they will retire secure.”

—Eleanor Schano Former TV News Anchor, Host LifeQuest (WQED Multimedia)

“Like the original, the updated second edition of Retire Secure! does a fine job of explaining why, when, and how folks should move money into, out of, and between the myriad tax-advantaged employer-sponsored retirement savings plans and IRAs. The key points are summarized clearly, and a more thorough, equally clear explanation is also offered for those who want it. The book is well-organized, with plenty of practical examples. It will be a valuable resource for people in both the accumulation and distribution of their retirement assets—and to their advisors, as well.”

—Michael T. Palermo, Attorney, CFP Author, AARP Crash Course in Estate Planning

“Read this book before you meet with any tax or financial advisor about how to get the most out of your IRA, 401(k), or other retirement plans. Retire Secure! will help you ask the right questions and find out if your advisors really know what they’re talking about.”

—Paul Merriman Founder, Merriman Berkman Next Author, Live It Up Without Outliving Your Money

“You’ve worked hard to build up your retirement funds—now finish the job and read the the new edition of Lange’s Retire Secure! You should carefully examine each of his main points, and take full advantage of his suggestions to stretch your money as far as possible before paying taxes. In these troubled times, Lange’s ideas are particularly relevant.”

—John A. Tracy, PhD, CPA Author, How to Read a Financial Reportand Accounting for Dummies

“Nice girls eventually become old women who want to retire. Let this book help you to ensure you have all the money you need to live your life the way you want in retirement.”

—Lois P. Frankel, PhD Author, Nice Girls Don’t Get the Corner Office

“A clear, concise, and well-written book that explains where and how to save for retirement so that you don’t outlive your assets, pay too much in taxes, or have too little to pass on to your heirs. In non-technical terms, James Lange compares and contrasts various strategies for the accumulation, preservation, and the distribution of wealth. No one should invest in a retirement plan, or take a distribution from one, until he or she has first read Retire Secure!”

—Gary S. Lesser, JD Author, Roth IRA Answer Book

“Jim Lange is a clear and concise communicator. He takes the complicated and makes it simple. Retire Secure! is a must read for anyone wanting a secure financial future.”

—Diane L. McCurdy, CFP Author, How Much is Enough?

Copyright © 2009 by James Lange. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Cartoons by Michael McParlane.

Library of Congress Cataloging-in-Publication Data:

eISBN : 978-0-470-45605-7

1. Tax planning—United States. 2. Individual retirement accounts—Law and legislation—United States. 3. Pension trusts—Law and legislation—United States. I. Title. KF6297.L36 2009 343.7305’238—dc22 2008041526

Foreword

I can’t remember a time when people were more worried about their economic future. The potholes on Wall Street and Main Street are big enough to swallow a car, and people are anxiously looking for a safe route to protect what they have. If you are looking for a guidance system that will help you take control of your financial future and protect your family, this book is it. Think of Retire Secure! as a GPS for your money. You may know where you are and where you want to go, but you don’t know how to get there. Jim offers the best routes.

Welcome to the second edition of Retire Secure! by James Lange.

When the first edition of Retire Secure! was released in 2006, I called it, “One of the best books about saving taxes I’ve ever read.” Economic conditions have changed greatly since the release of the first edition, and I am even more confident that Jim’s updated strategies in the second edition will guide you to a secure retirement. Jim’s work has been time tested and vetted by the best in the business. He doesn’t just speculate, he “runs the numbers,” and all of his recommendations are backed up by real world results.

If you follow Jim’s strategies, you are sure to get the most out of your IRAs and retirement plans. Whether you are still working, preparing to retire, or have already retired, this book will point you in the right direction. Jim also helps you chart a course for your family, after you are gone, with an estate plan that offers great flexibility. The advice and recommendations in Retire Secure! will be particularly beneficial for those approaching retirement or already retired. Those individuals have the least amount of time to make up market losses, and strategic planning is critical. If you are among that constituency, this book is definitely for you.

But what about short-term planning? Wouldn’t you like to save taxes and keep more money for yourself right now? What about taking advantage of Roth IRA conversions now or in 2010? Have you even heard about this opportunity? A Roth IRA conversion could save you tens of thousands of dollars and could provide an additional million dollars or more to your children and grandchildren. If this piques your curiosity, the answers are inside this book.

Read Retire Secure! and learn how Jim’s strategies can work for you. Then get additional advice if you think you need it. As Jim points out, too many people go it alone and miss out on many opportunities. The information in this book will help you recognize a good advisor, and you will definitely bring great ideas to the table.

So don’t just try to avoid the potholes. Take control, and find a really good route to follow. Use Jim’s advice to minimize wrong turns and detours as you travel the road to a comfortable and secure retirement.

—LARRY KING

Acknowledgments

The first and second editions of Retire Secure! could not have been written without the work and dedication of many others. I am indebted to a few individuals whose contributions were invaluable.

Steven T. Kohman, Certified Public Accountant, Certified Valuation Analyst, Certified Specialist in Estate Planning, has worked for me for over 13 years and has co-authored many articles with me. Steve is a skilled number cruncher and combines his extensive tax background with his superb quantitative and computer skills. Steve’s quantitative analysis, evidenced in the graphs and charts throughout the book, presents compelling proof of the fundamental concepts that make up the backbone of Retire Secure! Steve’s help in the second edition was also invaluable. His extensive writing and analysis in the area of IRAs, Roth IRA conversions, and life insurance make the second edition of this book even more valuable than the first.

Matt Schwartz, Esq., is an exceptionally bright and gifted IRA and estate attorney who has worked with me for eight years. I am proud to have him as a colleague. Matt has made many original contributions to the book, as well as many corrections. He works closely with my clients and me to complete the documentation necessary to implement our recommended planning solutions. Matt’s review and update of this second edition was thorough and comprehensive. His contributions to the “What’s New” section as well as the chapter on charitable giving stand out as examples of his excellent work.

Cynthia Nelson has been working with me for over 10 years. During this period, she has had full editing and writing responsibilities for virtually all my published works. She is a rare find. She cuts through some of the technical and legal jargon that I sometimes fall into and expresses complex thoughts in a way the lay reader can understand. She also allows me to express my humanity, and she adds touches of her own that make reading the book a better experience.

To Jillian Manus, my “rock-star agent,” thank you for your patience with a difficult client. To Debra Englander, my Wiley editor, thank you for selecting Retire Secure! for publication and all your subsequent help with both editions.

Special thanks to Larry King. Your Foreword adds sizzle.

I also want to thank all the prerelease readers and reviewers of Retire Secure! Special thanks go to Charles Schwab and Ed Slott, both of whom provided insight and suggestions for the original manuscript. Many more of my colleagues and peers offered thoughtful testimonials. I have included as many as I could. Your support means more to me than I can adequately express.

I also want to thank Ed Slott for writing such a thoughtful Introduction.

I must also convey my gratitude to my full-time coworkers (in addition to Steve and Matt) who provide so much help in my practice that without them the book could never have been written: Glenn Venturino, CPA (how can I properly thank you for 23 years of superb service to our clients); Sandy Proto, our office manager (without Sandy the office would cease to function); Alice Davis, who is so wonderful and personable with our clients and is the first to jump on board when anything needs to be done; Donna Master, who keeps my books, which would certainly be a shambles without her dedicated precision; and Daryl Ross, our legal administrative assistant/ master tax return compiler who rolls up her sleeves and gets it done year after year. Special thanks to my new marketing director, Beth Bershok, who has helped with the legwork needed to get this book in your hands.

There are two special subcontractors who work on my behalf whom I want to thank. Steve May, my webmaster for 10 years! How can I properly thank you? And Rich Davis who has been invaluable helping me produce fabulous CDs and DVDs of some of my best information.

Finally, to matters of the heart, a special thanks to my mother, Barnetta Lange, Ph.D., Professor Emeritus of Journalism. Out of her love for the English language, she tried to keep me from too many clichés and “ize” words, and she also improved the language and corrected grammatical errors. Forever the teacher.

And closest to my heart I want to thank my beloved wife, Cindy Lange, who surely is one of the few women alive who could put up with me. Her imprint is on every page of the book. Cindy has been enormously resourceful in many areas and has made both significant direct and indirect contributions to the book. This book would never have happened without her help, support, and love. Finally, thank you to my 14-year-old daughter, Erica, whom I love dearly, even though she now beats me in Boggle and many other board games. Thank you for not complaining when I went back to the office after dinner to work on the book.

Thank you all.

How to Read This Book

I recommend that you start with “The Big Retirement Question” and “A Summary of Tax Reduction Strategies” so you can begin to think about the underlying theme of “Pay taxes later” with respect to your personal situation. Then, please look at the detailed table of contents and pick out the chapters that grab your attention.

Virtually every chapter contains proof that my recommendations have been tested and proven worthy. You may want to skip over portions of the proof and just read the advice. Sometimes, when I am looking for information or advice, I want to scream, “Don’t tell me just tell me to do.” If you feel similarly, or you find yourself moving in that direction after realizing there is enormous support for virtually every recommendation I make, the book’s sidebars and summaries at the end of the chapters will serve you well.