================================================= Expat Worlds Monthly Digest ================================================= February, 2007 Vol. 9, Issue 2 .....IN THIS DIGEST..... ==== THE STORY =================== -=Retirement and Planning=- ==== OTHER EZINES ================ ==== EW SPECIAL ================== -=The W.G.Hill 'PT" Collection on CD-ROM=- ==== HUMOR, TRIVIA, NEWS AND MORE... == -=Trivia=- -=News Story=- -=Jokes=- ==== THE RESOURCE TIP ============= -=Spamihilator=- ==== INSIDE THE CURRENT EXPAT WORLD == -=Table of Content=- ==== THE STORY ================================== PLANING FOR DEATH With a Little Partying Beforehand RETIREMENT AND PLANNING How To Make Your Money Last After Your Last Paycheck Note from EW: This is some very generic info but it's a basis to work from. There are more non-generic means to keep the money flowing after retirement. Stick with Expat World and we'll give you the REAL skinny in future issues. Today's retirees can expect a longer retirement than their parents. That means more years to finally do what you want to do, including travel and hobbies. But a longer retirement also means more years of money going out and no paycheck (or only a small one) coming in. That's why you need to be smart about how you pay for your retirement years. You really need to have a strategy to make sure your savings last. Your own need for retirement money will depend on factors such as your health-care costs or whether you plan to earn parttime income. As with any major financial decision, you should consult with financial advisors and loved ones to decide what strategies are best for you. Social Security and Pension Benefits: Your first order of business should be to determine when the best time is to start tapping Social Security. For example, if you start receiving your Social Security benefits before your "full" retirement age (which could be anywhere from 65 to 67 under current laws), your benefits will be reduced permanently, and perhaps significantly, from what they would be at your full retirement age. And if you receive Social Security benefits early, but you continue to work and your earnings exceed certain limits, your benefits will be reduced even more until you reach full retirement age. On the other hand, if you delay collecting Social Security until after your full retirement age, you can continue to work and still get your full retirement benefits, or even higher benefits, no matter how much you earn. The basic guidance from the Social Security Administration (SSA) is: "As a general rule, early retirement will give you about the same total Social Security benefits over your lifetime, but in smaller amounts to take into account the longer period you will receive them. There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit is permanently reduced." For help figuring out whether early retirement is better for you, check out Social Security's "Break-Even Age" calculator at www.socialsecurity.gov/OACT/quickcalc/ when2retire.html or call the SSA for more information. Employer pension plans usually have options somewhat similar to those of Social Security. Contact your employer's personnel department for guidance. No matter when you decide to start receiving your benefits, remember that it could take several weeks to receive your first payment. Also consider having your payments deposited directly into your bank account so you don't have to worry about a check getting lost or stolen in the mail. IRAs, 401(k)s and Other Retirement Savings Plans: As with your Social Security and pension benefits, you may want to delay tapping into your retirement accounts as long as possible so they can continue to grow to cover unex medical costs in the future or to protect the inheritance for your heirs. However, if you need to supplement your income, Individual Retirement Accounts (IRA) and other retirement savings can be a good source. Before you start withdrawing money from your retirement accounts, most financial planners suggest setting a target annual withdrawal rate. Make it low enough to avoid depleting these funds too quickly. You can fine-tune your withdrawal strategy each year, preferably with the guidance of your financial or tax advisor. For example, if your personal situation changes, you can adjust how much you should withdraw. Also review your retirement portfolio - your mix among stocks, stock mutual funds, CDs (certificates of deposit), bonds and so on - to be sure it's well diversified. Another caveat: If you have retired, every year after age 70 1/2 be sure to take out at least the minimum required distribution from your taxdeferred retirement savings plans (except Roth IRAs) to avoid large IRS tax penalties. (If you are still working at 70 1/2 or later, you do not need to start taking minimum distributions from your employer's plan until April 1 of the year following the year you finally retire.) Keep in mind that you only have to withdraw the money, you don't have to spend it. If you don't need the money you can reinvest it somewhere else, such as in a bank savings account. Because each person's situation is different, it's best to discuss your strategy with your tax or other advisor. Credit Cards: Having a credit card is often a necessity for most people - from paying for medicine and emergencies to booking a vacation. But for people living on a fixed income, there are concerns about carrying a large balance from month to month and running up significant interest charges. In the worst cases, the debt becomes unmanageable and a major source of stress for the account holder and the family. Another problem for many people is having too many credit cards. That's because the more cards you have, the more opportunities you have to get into debt. And that possibility could make it tougher for you to get the best deal the next time you apply for a loan, insurance, a mortgage or an apartment. Having a lot of cards also can make it harder to keep track of when your monthly payments are due or to even realize that a thief may have stolen one of your cards. Home Equity Loans and Lines of Credit: These are loans that use the equity in your house as collateral and often are tax deductible (check with your tax advisor). The equity refers to the difference between what you owe on a house and its current market value. A home equity loan is a one-time loan for a lump sum, typically at a fixed interest rate. A home equity line of credit works like a credit card in that you can borrow as much as you want up to a pre-set credit limit. The interest rate for a line of credit usually is variable, meaning it could increase or decrease in the future. For people on a fixed income who have paid their mortgage in full or whose mortgage is almost paid in full, home equity loans are tempting to use to pay for expenses, but they can also be dangerous. In the worst-case scenario, if you are unable to make the required loan payments, you could lose your home. In general, the best uses for home equity- type loans are to purchase goods or services with long-term benefits, such as home improvements that add to the value of your property. The riskiest uses of home equity loans include a vacation or a car because you could end up paying a lot in interest charges for a purchase that's only of short-term value or has gone down in value. Also beware that some unscrupulous people or companies (including home repair contractors) push high-cost, high-risk home equity loans to elderly people and other consumers. For more information on home equity loans, see the federal government brochure Putting Your Home on the Loan Line is a Risky Business on the FDIC's Web site at www.fdic.gov/consumers/consumer/predatorylending. Reverse Mortgages: These are home equity loans available to homeowners age 62 or older. In general, a reverse mortgage is a loan that provides money that can be used for any purpose, and the principal and interest payments typically become due when you move, sell your house or die. A reverse mortgage also differs from other home loans in that you don't need an income to qualify and you don't have to make monthly repayments. While reverse mortgages can be a valuable source of funds, they also have serious potential drawbacks. In particular, you will be reducing your equity, perhaps substantially, after you add in the interest costs. Reverse mortgages can help in some situations, such as when you have large medical bills that are not covered, to make major home repairs or to help people on low fixed-incomes make ends meet, however, you're reducing your ownership share of the home. That means the inheritance you are leaving to your heirs could be greatly diminished or you could have far less money available for other purposes, such as buying into a retirement community later on. That's why a reverse mortgage should usually be used as a last resort, not as an integral part of a retirement strategy. In addition, the fees can be high, and that could make a reverse mortgage a poor choice to cover relatively small expenses. Life Insurance: People mostly think about life insurance as a source of income when someone dies, but they forget that many insurance policies also can be a source of cash at other times. If you have a life insurance policy with built-up cash value, you can borrow against that money and either repay the loan with interest or reduce the death benefit accordingly. For example, if you have a $100,000 life insurance policy but you owe $20,000 on a loan from that policy, your heirs would receive $80,000 as the insurance payout. There are other options reserved for people who have been diagnosed with a terminal illness and have run out of other ways to pay their expenses. One example is a life insurance policy that can pay "accelerated death benefits" to an eligible policy holder - generally up to about 50 percent of the face value of the policy – in either a lump-sum payment or monthly payments that are deducted from the policy's face value. When the policy holder dies, the rest of the death benefit is paid out. Another possibility is to "sell" your life insurance policy to obtain a lump-sum of about 40 to 80 percent of the face value in exchange for the right to receive the full insurance payout when you die. This is known in the insurance business as a "viatical settlement." These and other options for tapping life insurance policies can be complicated (including tax and other implications), and they're not right for everyone. Consider getting guidance from your state government's insurance regulator. ==== OTHER EZINES & BOOKS ======================== ASIAN TIMES ONLINE Asia most trusted source for news, business,commentary and analysis from throughout Asia and our world. (www.atimes.com). ----- SURVIVAL BOOKS Go to and check it out! ----- japan-guide.com Extensive, up to date online guide on Japan living and travel related information. http://www.japan-guide.com/ ==== EW SPECIAL ================================= THE W.G.Hill 'PT" COLLECTION ON CD-ROM Expat World has a five book set, all on a single CD, written by W.G. Hill of "PT" fame. This "Hill CD" will tell you things even your lawyer won't tell you even if he knew! The 5 books on the CD are: - PT (Perpetual Traveler, Past Tax-payer, Prepared Thoroughly, etc.) - The Passport Report - PTO - Portable Trades and Occupations - The Invisible Investor - How to Become an Honorary Consul General For details and book excerpts go to or website at or directly to the info page at ==== HUMOR, TRIVIA, NEWS AND MORE... ================ NEWS STORIES Islamic spies to snoop on lovers KUALA LUMPUR (Reuters) - A Malaysian state plans to recruit "spies" from the public to snoop on unmarried lovers and report them to Islamic religious authorities, a newspaper said Tuesday. The Terengganu state government plans to enlist the part-time spies to look out for un-Islamic behavior, such as unmarried couples kissing or holding hands, the Star daily said. "Some of these 'spies' could be waitresses or even janitors at hotels acting as auxiliary undercover agents for our religious department," the head of the state government's Islamic and welfare committee, Rosol Wahid, was quoted as saying. "Accurate details are required for the enforcement officers to act, otherwise they could be pouncing on married couples." Last October, religious police in another part of this mainly Muslim country caused an outcry when they mistakenly raided the rented holiday apartment of a Christian American couple on suspicion that they were unmarried Muslims in "close proximity." --- Turning milk into beer: Bilk GREAT news for beer and milk lovers: A liquor shop owner in Japan's largest dairy farming region has stopped crying about local spilled milk and started making beer from it instead. "We came up with the idea after hearing about surplus milk," said Chitoshi Nakahara, head of the Nakahara liquor shop on the northernmost island of Hokkaido. Milk consumption has been declining steadily in Japan, and Hokkaido disposed of nearly 900 tonnes of milk last March due to over-production, according to the Japan Dairy Association. Mr Nakahara's new brew, "Bilk" - a combination of "milk" and "beer" - is about 30 per cent milk. It also contains hops, and the production process does not differ much from that of regular beer, he said. His shop started selling Bilk, which apart from a slight milky scent looks and tastes like ordinary beer, on February 1 after spending about six months developing the product with a local brewer. --- Donald Duck's a Big Bird in Politics If you don't think of Donald Duck as a political figure, you haven't lived in Sweden very long. With apologies to Bugs Bunny, SpongeBob SquarePants, and even Mickey Mouse, Donald Duck has a fine tradition of scoring high in Swedish national elections, among voters who favor the joke vote. In fact, over the last 20 years, the Donald Duck Party has scored enough write-in votes at points to theoretically be the country's ninth-most-popular political organization. That's quackers! The Donald Duck Party — better known in Sweden as Kalle Anka — dukes it out with the Tax Evader's National Party, the Beer Party and the Professional Bachelors Party for seats in the Riksdag, Sweden's 349-member parliament. About one in 20 Swedish voters cast their ballots for unofficial, write-in candidates. That's about 26,000 votes. Donald's best showing in recent years came in 1985, when he took 291 votes. Perhaps in a country of 9 million, that's not that impressive. But let's remember — he's a cartoon duck and he frequently gets more votes than living, breathing politicians. Sadly for Donald, the joke won't go on forever. Swedish politicians are changing election rules. By 2006, voters will be prohibited from choosing nonexistent candidates, eliminating the potential embarrassment of leaders having to open an embassy in Tomorrowland. Momentum is already starting to shift. In national elections Sept. 15 — when Sweden's Social Democrats garnered 40 percent of the vote — the Donald Duck Party had one of its worst showings in years — earning just 58 write-ins. Perhaps that's bad for a human politician. It's still pretty good for a cartoon duck. This strange expression of Donald's popularity is hard for many Americans to understand. "Donald's an Everyman and he's very popular abroad, in many cases more popular than Mickey," says Hollywood historian Stephen Schochet, author of Fascinating Walt Disney. --- Oxymoron: reasonable attorney fees ----- The trouble with our times is that the future is not what it used to be. -- Paul Valery ----- "USA Today has come out with a new survey: Apparently three out of four people make up 75 percent of the population." --David Letterman. ----- If people behaved like governments, you'd call the cops. -- Kelvin Throop ----- An eminent teacher and thinker once expressed his philosophy of life succinctly. "When it all boiled down to the essence of truth," the philosopher said, "one just live by a dog's rule of life: If you can't eat it or fuck it, piss on it!!!" ----- Scientists have discovered a food that diminishes a woman's sex drive by 90 percent. Wedding cake! ----- This old man in his eighties got up and was putting on his coat. His wife said, "Where are you going ?" He said, "I'm going to the doctor." And she said, "Why? Are you sick?" "No," he said. "I'm going to get me some of those new Viagra pills." So his wife got up out of her rocker and was putting on her sweater and he said, "Where are you going?" She said, "I'm going to the doctor too." He said, "Why?" She said, "If you're going to start using that rusty old thing again, I'm going to get a tetanus shot." ==== THE RESOURCE TIP ============================ SPAMIHILATOR Spamihilator removes more than 98% of spam mails before they get into your inbox. Spamihilator works between your E-Mail client and the Internet and examines every incoming E-Mail. Useless spam mails (Junk) will be filtered out. This process runs completely in the background. Download it at . ==== INSIDE THE CURRENT EXPAT WORLD =============== EXPAT WORLD NEWSLETTER (VOL.19 ISSUE 02) Table of Content: - PT’S AND OTHERS THAT HAVE NO ADDRESS? - YOU BET YOUR LIFE - FOR US RESIDENTS - GET SOME FRIDAY NIGHT BEER MONEY - SOME TAX SAVINGS IF YOU ARE A YANK - LETTER FROM SINGAPORE - DEFINING THE SINGAPORE STATE - LETTERS FROM AMERICA - WHERE DID ALL THOSE BILLIONS GO - IS AMERICA REALLY LIVING BEYOND ITS MEANS? - DR. E. WORLD – THE SEX DOCTOR - THE TRUTH ABOUT SEX -- IT‘S GOOD FOR YOU - PLANING FOR DEATH - AROUND THE WORLD WITH EXPAT WORLD - THE BRITS ARE NOT HAPPY - HOME ATTACKS: EXPATS TARGETED - INTERNATIONAL SNIPS AND CLIPS - BRAIN TRAINING CAN HAVE LASTING EFFECTS FOR SENIORS - WANT TO BE A SINGAPORE CITIZEN OR PERMANENT RESIDENT (PR) - CRAPPER RAPPER - THE DUMBING DOWN OF THE US PUBLIC SCHOOL SYSTEM - SOME FUNNIES YOU MISSING SO MUCH Each week the EXPAT WORLD DIGEST gives you just a smattering of what you can find in the EXPAT WORLD newsletter that we produce once a month. Why not get the whole story and subscribe now to our electronic version for just US $30 per year. Go to our website: www.expatworld.net to sign up. ********************************************************************* EXPAT WORLD - the newsletter of international living URL - http://www.expatworld.net Email - office@expatworld.net ---------- End of Expat World Digest --------------------------------