Cover image for Retirement planning for dummies
Title:
Retirement planning for dummies
ISBN:
9781119627579
Physical Description:
xi, 338 pages : illustrations ; 24 cm.
General Note:
"Learning made easy"--Cover.

Includes index.
Contents:
Getting started -- Using online resources -- Maximizing your retirement knowledge -- The part of tens.
Summary:
Whether your retirement is years or decades away, this guide will help you plan for it. Explore a variety of tools to make that vision a reality, discover what IRAs and 401(k)s are really about, investigate your investment options, and see how to monitor your progress.
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Summary

Summary

Advice and guidance on planning for retirement

Retirement Planning For Dummies is a one-stop resource to get up to speed on the critical steps needed to ensure you spend your golden years living in the lap of luxury--or at least in the comfort of your own home.

When attempting to plan for retirement, web searching alone can cause you more headaches than answers, leaving many to feel overwhelmed and defeated. This book takes the guesswork out of the subject and guides readers while they plan the largest financial obligation of their life.

Take stock of your finances Proactively plan for your financial future Seek the help of professionals or go it alone Use online tools to make retirement planning easier

Whether you're just starting out with a 401(k) or you're a seasoned vet with retirement in your near future, this book helps younger and older generations alike how to plan their retirement.


Author Notes

Matt Krantz is a nationally known financial journalist who specializes in investing topics. He's personal finance and management editor at Investor's Business Daily. He's also worked in the financial industry and covered markets and investing for USA TODAY. His writing on financial topics has appeared also in Money, Kipljnger's, and Men's Health. Krantz is the author of Online Investing For Dummies, and Fundamental Analysis For Dummies and co-author of Investment Banking For Dummies.


Table of Contents

Introductionp. 1
About This Bookp. 2
Foolish Assumptionsp. 2
Icons Used in This Bookp. 2
Beyond the Bookp. 3
Where to Go from Herep. 3
Part 1 Getting Startedp. 5
Chapter 1 Retirement Planning Is Up to Youp. 7
Blazing Your Own Retirement Planp. 8
Measuring Your Lifespanp. 9
Social Security Administration's Life Expectancy Calculatorp. 10
Bankrate's Life Expectancy Calculatorp. 10
Living to 100 Life Expectancy Calculatorp. 12
Retirement Planning Beginnings: The Pensionp. 12
Changing Times: The 401(k)p. 13
Behold the power of the 401(k)p. 17
An opportunity to savep. 18
Social Security: The De Facto Safety Netp. 18
Chapter 2 Determining How Much You Spendp. 21
Finding Out Where Your Money Goesp. 22
Eyeing your expensesp. 22
Tracking your money's every movep. 23
Spending guidelinesp. 24
Measuring Your Spendingp. 25
Using your credit card company or bank's online resourcesp. 25
Diving into the world of third-party apps and online toolsp. 26
Checking out other money-tracking optionsp. 30
Doing something with all this datap. 31
Putting Your Spending in Contextp. 31
Using government statistics as a guidep. 32
Seeing how spending changes as you agep. 33
Improving Your Numbersp. 36
Figuring out if your latte is ruining your retirementp. 36
Finding easy ways to stop wasting moneyp. 38
Boosting your income with a side gigp. 39
Chapter 3 Calculating How Much You Need to Retirep. 41
Getting to Know the 4 Percent Rulep. 42
How the 4 percent rule worksp. 43
The magical power of the 4 percent rulep. 45
Shortcomings of the 4 percent rulep. 45
Using Online Retirement Calculatorsp. 49
Getting startedp. 49
Exploring retirement calculators from mutual fund companiesp. 51
Drilling in with detailed retirement calculatorsp. 54
Avoid gambling with retirement: Monte Carlo analysisp. 55
Understanding Why Starting Early Is Importantp. 57
Compounding: The most powerful force in the universep. 57
Inspiration to start retirement planning nowp. 57
The race to $1 million: Doable if you start soonp. 59
Chapter 4 Choosing the Right Accountp. 61
Retirement Planning in a Nutshellp. 61
Getting startedp. 62
What about pensions and Social Security?p. 63
A Great Place to Start: 401(k)sp. 65
Advantages of 401(k) plansp. 65
Drawbacks of 401(k) plansp. 67
The Roth: An interesting twist on retirement savingsp. 68
IRAs: A Cornerstone of Retirement Planningp. 68
Advantages of IRA plansp. 69
Drawbacks of IRA plansp. 70
A few IRA odds and endsp. 72
Self-Employed Plansp. 73
The spectacular SEP-IRAp. 73
The 401(k) for one: A one-participant 401(k)p. 74
Keeping it SIMPLEp. 74
What's the Catch?p. 75
Tax-deferred isn't tax-freep. 75
Beware the 10 percent early withdrawal penaltyp. 76
Don't mortgage your future: Retirement plan loansp. 77
Chapter 5 Gauging Your Appetite for Riskp. 79
Getting a Handle on Your Risk Tolerancep. 80
Determining your investor typep. 80
Understanding risk tolerancep. 82
Looking at risk tolerance differentlyp. 83
Using risk-assessment toolsp. 85
The ABCs of Asset Classesp. 87
Putting stocks in a boxp. 87
Adding bondsp. 89
Including a few other asset classesp. 91
Seeing how risk tolerance and returns work togetherp. 91
Chapter 6 Opening Your Accountsp. 93
Getting Your 401(k) Up and Runningp. 94
Understanding target-date fundsp. 96
Knowing the people involved in your 401(k)p. 97
Getting familiar with your 401(k) planp. 97
Plugging into Your IRAp. 98
Knowing what you'd like to ownp. 98
Choosing someone to handle your IRAp. 99
Mutual fund companiesp. 99
Traditional and discount online brokeragesp. 102
Robo-advisorsp. 106
Connecting with a Financial Plannerp. 110
Finding a financial plannerp. 111
Deciding what is right for youp. 113
Part 2 Using Online Resourcesp. 115
Chapter 7 Managing and Optimizing Your 401(k)p. 117
Getting Onlinep. 118
Registering for 401(k) accessp. 118
Getting to know your 401(k) toolsp. 122
Checking your performancep. 124
Checking Your Portfolio Allocationp. 125
Understanding the key asset classesp. 126
Looking at your current mix without using a calculatorp. 128
Finding your optimal asset class mixp. 130
Changing your asset allocationp. 131
Powering Your 401(k) with Contributionsp. 132
Inspecting your current contribution levelp. 133
Deciding how much to contributep. 133
Seeing the power of putting more awayp. 135
Discovering Other Nifty Aspects of Your 401(k) Plan Sitep. 136
Locating information on plan loans and withdrawalsp. 136
Digging into the statementsp. 137
Finding various plan documentsp. 138
Chapter 8 Taking Your IRA to the Next Levelp. 139
Getting Online with Your IRA Providerp. 140
Opening your IRA accountp. 140
Logging in and looking aroundp. 142
Understanding your portfolio holdingsp. 142
Checking Your Portfolio Asset Allocationp. 143
Understanding correlationp. 143
Viewing your asset allocation on your provider's websitep. 145
Enhancing your asset allocationp. 145
Understanding Your IRA Contributionsp. 150
Setting up IRA depositsp. 150
Roll over Beethoven: IRA rolloversp. 152
Funding an IRA with a Roth conversionp. 152
Taking Money out of Your IRAp. 153
Getting money out early: 72(t) distributionsp. 153
Taking your required minimum distributionp. 154
Setting up a beneficiaryp. 155
A word about inherited IRAsp. 155
Chapter 9 Optimizing Your Retirement with Third-Party Offeringsp. 157
Understanding Feesp. 158
Improving success with lower feesp. 158
Knowing the types of feesp. 159
Uncovering the shocking truth about feesp. 160
Examining Your Portfolio Using Morningstarp. 161
Pulling up individual funds that you ownp. 162
Putting your entire portfolio to the testp. 169
Putting Your401(k) Under the BrightScope Microscopep. 170
BrightScoping your 401(k)p. 171
Learning more about your fundsp. 173
Getting to know your advisorp. 173
Grading Your Retirement Plans in Other Waysp. 174
X marks the spot for a better 401(k)p. 174
Getting up close and personal with Personal Capitalp. 175
Chapter 10 Digging into Social Securityp. 177
Discovering All the Benefits of Social Securityp. 178
Disability coverage (SSDI): The forgotten bonus of Social Securityp. 178
Medicare for Allp. 180
Survivors benefitsp. 181
Retirement benefitsp. 181
Managing Social Security Information Onlinep. 183
Examining what you're paying into Social Securityp. 183
Signing up for and accessing Social Security information onlinep. 185
Understanding your history of Social Security creditsp. 187
Planning for Social Security in Retirementp. 189
Claiming your Social Security benefitp. 191
Applying for benefitsp. 193
Part 3 Maximizing Your Retirement Knowledgep. 195
Chapter 11 Balancing Retirement Savings with Other Needsp. 197
Cleaning Up Your Personal Balance Sheetp. 198
Building an emergency fundp. 199
Cutting the debt anchor loosep. 206
Opening a taxable brokerage accountp. 209
Saving for a Homep. 211
Seeing how a retirement plan can helpp. 211
Knowing how much you can affordp. 212
Budgeting for homeownershipp. 213
Saving for Collegep. 215
Understanding why your help mattersp. 216
Choosing a college-savings accountp. 217
Choosing a 529 providerp. 218
Figuring out how much you should savep. 219
Chapter 12 Fine-Tuning Your Asset Allocationp. 221
Exploring Stock Strategiesp. 222
Understanding small versus large companiesp. 223
Knowing where your money is: international, global, and emerging marketsp. 225
Trusting real estate investment trustsp. 227
Diving for Incomep. 229
Getting to know bonds betterp. 230
Going to town with municipal bondsp. 232
Using Morningstar to study bondsp. 233
It's Easy Being Green: The Rise of ESGp. 235
Deciding whether to include ESG in your retirement planp. 236
Understanding ESG investmentsp. 237
Buying into an ESGp. 238
Chapter 13 Keeping Your Retirement on Trackp. 241
Tracking Your Portfolio's Healthp. 242
Measuring returns and asset allocationp. 243
Modifying your planp. 248
Tracking and Updating Your Goalsp. 250
Assessing your goalsp. 251
Seeing if your goals change your plansp. 252
Tracking retirement progress and milestonesp. 256
Chapter 14 Gearing Up for Retirementp. 259
Creating a Retirement Budgetp. 260
Test-driving your budgetp. 260
Keeping your stock exposurep. 262
Waiting until 70 to collect Social Securityp. 262
Having a healthcare planp. 263
Knowing the bucket strategyp. 264
Working longerp. 264
Thinking about Annuitiesp. 266
Understanding the types of annuitiesp. 267
Finding an immediate annuityp. 269
Running sample annuity numbersp. 271
Unlocking a Goldmine: Reverse Mortgagep. 273
Understanding reverse mortgagesp. 274
Understanding the drawbacks of reverse mortgagesp. 275
Using a reverse mortgagep. 275
Chapter 15 Understanding Pensionsp. 277
Checking a Private Pension's Fundingp. 278
Understanding the Problems with Public Pensionsp. 279
Understanding Pensions Inside-Outp. 282
Choosing a lump sum versus ongoing paymentsp. 282
Choosing single life versus survivorp. 284
Managing Your Pensionp. 287
Using online toolsp. 287
Calculating the value of a lump sum paymentp. 288
Rolling over a pensionp. 291
Chapter 16 Getting Insurancep. 293
Building a Health Insurance Planp. 294
Unlocking the health savings accountp. 294
Understanding Medicare supplemental plansp. 298
Exploring the exchangesp. 299
Considering long-term care insurancep. 302
Defending Your Money with Insurancep. 303
Checking property and casualty coveragesp. 303
Getting ready for a rainy day: Umbrella insurancep. 304
Protecting your family with life insurancep. 306
Part 4 The Part of Tensp. 311
Chapter 17 Top Ten Retirement Mistakesp. 313
Waiting to Savep. 313
Ignoring Feesp. 314
Not Securing Your Informationp. 314
Prioritizing College Savings Over Retirementp. 314
Not Diversifying Your Portfoliop. 315
Waiting for the "Right Time" to Investp. 315
Having Inadequate Insurancep. 315
Taking Money from Your Accounts Earlyp. 315
Not Checking Your Social Security Benefitp. 316
Not Thinking about Incomep. 316
Chapter 18 Top Ten Retirement Questionsp. 317
How Much Money Do I Need?p. 318
Is Medicare Enough?p. 318
What Will I Do with My Free Time?p. 319
Will I Run Out of Money?p. 319
Should I Have a Roth or Traditional IRA?p. 319
How Good Is My 401 (k)?p. 320
What's an RMD?p. 320
Can Retirement Rules Change?p. 321
What Can I Do If I'm Near Retirement Age and Don't Have a Plan?p. 321
Do I Need a Financial Advisor?p. 322
Indexp. 323