Plan Your Prosperity: The Only Retirement Guide You'll Ever Need, Starting Now--Whether You're 22, 52 or 82
Format: PDF / Kindle (mobi) / ePub
Whether you’re in retirement, just getting ready to retire, or 5, 10, or 40 years out, this book can help you invest smarter your whole life and yes, plan better for retirement.
Harmful mythology abounds about retirement investing. Many retirees or soon-to-be retirees have heard a plethora of advice. Take 100 (or 120) and subtract your age to get your equity allocation, put the rest in bonds or cash. Buy only bonds. Buy only high dividend stocks. Or some combination! Buy equity-indexed annuities or some “guaranteed” income product. All examples of a potentially harmful myth many folks believe to be smart, strategic moves.
Investors believe preparing for retirement requires a radically different set of tools or a dizzying array of products. Navigating the world of retirement products and services can be a full-time job. But investing for retirement is, in practice, not much (if at all) different from investing. In Your Retirement Plan, Ken Fisher will give readers a workable strategy to either develop their own retirement investing plan or work more successfully with a professional to increase the likelihood of achieving long-term goals while avoiding common pitfalls. The book will include easy-to-follow steps like
- How to think, correctly, about investing time horizon.
- How to better figure how much income you need
- How to determine if a portfolio can provide that income
- How to figure how much to save each year to achieve retirement goals
- What pitfalls to avoid
- And more. . . .
In this retirement planning book that's not just for retirees, Fisher will hand readers the tools and confidence they need to better plan for the future.
average. Falling prices might sound grand at first, but they’re not. And in fact, if you had to choose between mild deflation and mild inflation, you want the mild inflation every day of the week and twice on Sunday—no question. If prices are in a steadily falling trend, that tends to exacerbate what is likely an already slowing economy. If you know prices will be lower next month, you probably won’t make any large ticket-item purchases. You wait for the lower prices later. Firms are the same
June 30, 2012, performance returns (net of advisory fees, commissions and other expenses, and reflecting reinvestment of dividends and other earnings) of the FI PCG GTR composite exceeded total returns of the MSCI World Index. Past performance is no guarantee of future returns. Investing in stock markets involves the risk of loss. Chapter 3 The Secret Code—Asset Allocation or Benchmark? Why is being as specific as possible about goals so critical for investors? Because goals play a
return from 1926 through 12/31/11.3 * Standard deviation represents the degree of fluctuations in historical returns. This risk measure is applied to 20-year annualized rolling returns in the chart. Figure 4.4 shows 30-year rolling periods. Over 30 years, the average standard deviation for 100% equities is actually lower than for 100% fixed income—1.4% for equities versus 2.8% for fixed income. Lower standard deviation with materially better long-term average annual returns. Figure 4.4
expense categories, if you care to get more exhaustive. Also, don’t forget to adjust for future inflation. (We get into that in Chapter 7.) It’s also important to know what’s a basic expense versus discretionary—but even that is a bit subject to your personal situation and preferences. You may view cable as discretionary but golf as a required, vital expense. I don’t golf—not my thing. My hobby is redwoods, and walking around redwood forests is very cheap. But I couldn’t live without it, so, in
experience. But the value of an appropriate benchmark is it can aid you in remaining disciplined (as discussed further in Chapter 3). What’s more, this is where a good professional can add value as well—in helping you remain disciplined to an appropriate strategy when the going gets tough. The Non-Goals Full disclosure, right up front: This book won’t make a benchmark recommendation or an asset allocation recommendation or provide a specific investing plan. You may think, “Then why the