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It would be great if we could all retire with a nice portfolio of savings and pension income, without having to worry about paying the bills most retired people pay.
Yet...many retirees are living out their retirement on the breadline without much hope for even going on holiday without being assisted by relatives or even handouts. Don't let yourself be one of them...it's never too late!
Title : Get a Life: You Don't Need a Million to Retire Well Author : Ralph E. Warner Rating : 5 Stars out of 5. Summary : Excellent Contrarian Viewpoint
This book should be required reading for anyone who thinks about retirement, from those just starting out in their 20's and 30's to those nearing retirement. The book is a refreshing, contrarian view to the conventional wisdom of "save tons of money for retirement", "you'll need 70-100% of your current income in retirement", etc., etc., etc. The traditional retirement literature is focused almost exclusively on money, with which Warner takes exception.
Warner's focus is on the whole person - he makes a very compelling argument that money is a FACTOR in a good retirement, but that it is also important to cultivate health, outside interests, friendships and family. He believes these latter factors have a FAR greater influence on a successful retirement than money. He bases this viewpoint on research among those enjoying active, successful retirements.
Warner is not a Pollyanna, saying not to even think about retirement savings (as some critics seem to suggest). The book contains some common sense ideas on savings and admits that having SOME money may help. Warner's point, however, is that money alone isn't going to make you have a successful retirement if you neglected your family, friends, outside interests, spirituality and health in order to get the money.
I highly recommend this book to anyone who ever thinks about retirement. You may not agree with the proposition, but the book will really help expand your view of the elements of a good retirement and may help you plan a more enjoyable life.
Title : Real Life Investing Guide: How to Buy Whatever You Want, Save for Retirement and Take the Vacation of Your Dreams While You're Still Young Author : Kenan Pollack Rating : 5 Stars out of 5. Summary : This is a fabulous introduction to investing.
If you're a twenty- or thirty-something looking for an accessible, useful guide to investing, look no further. This is a great how-to guide to the markets, written in an inviting yet not condescending style. Buy it. Read it. Tell your friends.
Title : Coming Up Short: The Challenge of 401(k) Plans Author : Alicia Haydock Munnell Rating : 4 Stars out of 5. Summary : Warning for a disaster in the pipeline
Collective retirement accounts are out in the US. Saving for your own pension is in. Britain is going the same way. The argument in favor is that the saver can make his own invesment decisions. This book points out that this development tends to leave savers with too little money for a good pension. People underestimate how much money is needed. They put off saving. They overestimate investment returns and take very bad investment decisions. They do not realize the influence of the interest rate at the moment of retirement. The authors might have pointed out more clearly how individual accounts are far more risky than collective accounts. The book is not just a powerful indictment of the US system, but also a warning for the UK.
Title : Brilliant Deductions Author : Wade B. Cook Rating : 4 Stars out of 5. Summary : Just one idea saved us thousands this year alone!
Although I found Mr. Cook's writing style a little hard to follow (he jumps from one idea to the next), this book is well worth a read just to harvest out any ideas that might work for your own situation. His suggestions about incorporating and income-splitting saved my familty at least $4,000 in income taxes this year alone. But, everyone's situation is different and readers need to do their own homework before blindly acting. Take Cook's ideas as just "brainstorming" sessions and then think for yourself. This reader certainly enjoys Wade Cook's "brainstorming" sessions.
Title : You've Earned It, Don't Lose It: Mistakes You Can't Afford to Make When You Retire Author : Suze Orman Rating : 1 Stars out of 5. Summary : The math is wrong
The time value of money analysis in this book does not take into account that money has time value and thus the results of the studies Orman presents are biased in the wrong direction. Also the rate of inflation of 5% is too high based on current and past values. This also biases the results. It is funny to see the results of her long term care insurance policy analysis. According to Orman, the insured pays in $1,255 each year for 30 years and alternately if they had not taked the policy get no credit for the compound growth rate this money would earn had not they taken the policy. It makes a huge different that was not considered Also there is a chart that shows a comparison of 5% simple and compound interest on an inflation rider. Certainly, inflation is not a simple interest growth rate. The data of Orman's table make no sense whatsoever and certainly have no bearing on the long term care policy decision.
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