Plan Your Prosperity: The Only Retirement Guide You'll Ever Need, Starting Now--Whether You're 22, 52 or 82
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.
alcohol, etc. For that, you need a benchmark ex-sin, which is easy to do and very common. Or maybe there’s some other category of stock you just can’t abide—whatever it is, you can have a benchmark that allows for your personal preferences. Or maybe you’re on the board of directors or a senior manager for a publicly traded firm. Often, those folks have certain rules governing when they can and can’t sell their firm’s stock. If this is you, you may decide to just not hold the stock at all—or
single stocks, sectors, other categories or the market as a whole. In fact, you can measure standard deviation for anything that has enough data points. A low standard deviation means results didn’t vary much from the average—i.e., low volatility. A higher number means there was more variability. Hence, over shorter periods, stocks have historically had a higher average standard deviation than fixed income. An important point: Standard deviation always measures historic data and is therefore
moving forward over your long time horizon, inflation stays flat (unlikely) or we have prolonged deflation (which you really don’t want—symptomatic of other bigger problems). Just to keep pace with inflation requires some growth. In between are varying magnitudes. For example: You want to target some dollar amount, as in, “I have $1 million now. In 30 years, I want to leave $4 million to my favorite charity.” Or maybe you have a cash flow goal. If you do, you may need your portfolio to stretch
time. And, in my view, humanity isn’t nearly done innovating yet. Anyone who has ever bet against our ability to problem-solve has been proven wrong over time, again and again. In 1798, Thomas Malthus infamously first predicted human population growth would soon outpace food production. He utterly rejected the idea of “unlimited progress” in food production. Six billion more people later, there are some who still believe, this time, human ingenuity has peaked. (How they square that with all the
they’ve got a rock-solid plan that makes good and smart sense—but if you don’t have a benchmark (and if you don’t know what a benchmark is, you don’t have one), the odds increase you may be meandering. And meandering is a bad path to prosperity. It can happen! You can stumble into a portfolio that can provide the kind of life you need down the road through luck (sometimes known as dumb luck—and in effect, the same thing). But if given the choice between dumb luck and smart planning, my guess is