Investing for
Retirement
Surviving a Financial Tsunami
Investing for Retirement – Surviving a Financial Tsunami is a step-by-step guide that leads the reader through the goal setting, planning, and implementation phases of saving and investing for retirement. A straightforward presentation, without financial jargon, that uses fundamental investing principles with examples, lists and worksheets to help the reader develop an easily implemented personal investment plan.
Investing for Retirement – Surviving a Financial Tsunami also reveals the role that investor’s emotions play in their investment decisions, and the potential for unintended consequences – why many investors are unsuccessful and can become discouraged.
John Benson, has been sharing his investment insights since 1983, as an investment broker, manager and teacher. He presents investment concepts and principles which are essential to surviving investment turbulence and becoming a successful investor.
Introduction
Section One - Understanding Your Reality
Chapter 1. Reality
A. The Tsunami
B. Two Phases of Retirement
C. Impact of Inflation
D. Getting Serious - Setting Goals
E. Should I Retire Early?
F. I Am Retired!
Chapter 2. Some Basic Rules
A. Rule 1 - Know Yourself
B. Rule 2 - What You Take to Vegas, Stays in Vegas
C. Rule 3 - Avoid the Big Mistakes
1. The Free Lunch
2. Uncle Lou Made a Killing
3. The Attorney Who Is His Own Lawyer
4. Timing the Market
5. Who Is Benefitting from This Investment Anyway?
D. Rule 4 - You Gotta Get Serious
Section Two - Where Do You Stand Now?
Chapter 3. Determine Your Cash Flow
A. Why Prepare a Cash Flow Analysis?
B. Prepare Your Cash Flow Analysis
Chapter 4. Determine Your Net Worth
A. Why Prepare a Balance Sheet?
B. Develop Your Balance Sheet and Determine Your Net Worth
Chapter 5. Seeing Your Financial Reality
A. What Your Personal Statements Revealed
1. Cash Flow Analysis
2. Balance Sheet - Net Worth
B. Draw Your Conclusions
C. Calculate Your Retirement Income
Section Three - Planning For Retirement
Chapter 6. Discover Your Risk Tolerance and Investing Temperament
A. The Tsunami of 2008/2009
B. Your Emotions
C. Investing Temperament
D. How Much Risk?
E. Risk Tolerance Evaluation
Chapter 7. Establish Your Asset Allocation Plan
A. Asset Classes
B. Determine Your Asset Allocation
C. Understanding Your Asset Allocation
Section Four - Investing for Retirement
Chapter 8. Tapping Investment Expertise
A. The Case for Professional Management
B. Using Mutual Funds and ETFs
C. Diversification
D. Watch Expense Ratios
E. Measurement of Performance
F. Should You Use an Advisor?
Chapter 9. Selecting Investments
A. Calculating Your Total Portfolio
B. Case Examples for Selecting Investments
C. Making Your Investment Selections
Chapter 10. Model Portfolios
A. Why Consider a Model Portfolio?
B. The Hound Dog Portfolio
C. The Retiree Portfolio
D. The Insured Portfolio
Chapter 11. Implementing Your Investment Plan
A. Regulatory Protections
B. Account Choices
C. Types of Accounts
D. Opening an Account
E. Placing an Order
F. Dollar Cost Averaging
G. Where to Stash the Cash
Chapter 12. Individual Retirement Accounts (IRAs)
A. Definition and Details
B. Required Minimum Distributions
C. Converting Traditional IRA to Roth IRA
D. Passing on Your IRA
Chapter 13. Employer Retirement Plans
A. Defined-Benefit Plan
B. Defined-Contribution Plan
C. Pension Protection Act of 2006
D. Transferring Retirement Plans
E. Keeping Retirement Plan Documents
Chapter 14. Maintaining Your Investment Plan
A. Periodic Reviews
B. Rebalancing Your Portfolio
C. Including Employer Retirement Plans
D. Transferring a Retirement Plan
E. Staying on Course
Section Five - Transitioning into Retirement
Chapter 15. Preparing for Retirement
A. Prepare a Retirement Budget
B. Utilizing a Retirement Checklist
Chapter 16. Social Security and Retirement
A. What Is Social Security?
B. What Is Required for Eligibility?
C. What Is the Full Retirement Age?
D. What Is My Social Security Worth?
E. When Should You Start Receiving Social Security?
F. Applying for Social Security Benefits
Chapter 17. Medicare and Retirement
A. What Is Medicare?
B. Medicare Eligibility
C. The Parts of Medicare
D. Out-of-Pocket Expenses and Premiums
E. Medicare Supplemental Insurance
Chapter 18. Managing Your Retirement Accounts
A. Sources of Retirement Income
B. Understanding Active and Passive Management
C. Rebalancing Your Portfolio
D. Autopilot - Using Target-Date Funds
Chapter 19. Establishing a Withdrawal Plan
A. The Impact of Inflation and Consumer Price Index
B. How Much Should You Withdraw Each Year?
C. Withdrawal Rate Variations
D. Withdrawing from Which Account?
E. Withdrawal of Securities
F. Withdrawals and Taxes
Chapter 20. What about Annuities?
A. What Is an Annuity?
B. Types of Annuities
C. Annuity Payout Choices
D. Variable Annuity Concerns
E. Using Fixed Annuities
Chapter 21. Wrapping It Up
Appendices
Appendix A - Investing for Retirement Checklist
Appendix B - Risk Tolerance and Investing Experience Evaluation Worksheet
Appendix C - Financial Worksheets
1. Cash Flow Worksheet
2. Balance Sheet/Net Worth Worksheet
Appendix D - Asset Allocation Worksheets
Appendix E - Asset Class Investment Choices
Appendix F – Setting Goals & Retirement Date Worksheet
Glossary
Endnotes