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The New Rules of Retirement: Strategies for a Secure Future | 
 enlarge | Author: Robert C. Carlson
Publisher: Wiley
Category: Book
List Price: $26.95
Buy Used: $11.96
You Save: $14.99 (56%)
New (30) Used (21) from $11.96
Rating:  6 reviews
Sales Rank: 73725
Media: Hardcover
Edition: 1
Pages: 288
Number Of Items: 1
Shipping Weight (lbs): 0.7
Dimensions (in): 9.1 x 6 x 1
ISBN: 0471683469
Dewey Decimal Number: 332.024014
EAN: 9780471683469
ASIN: 0471683469
Publication Date: November 5, 2004
Availability: Usually ships in 1-2 business days
Shipping: Expedited shipping available
Condition: Lots of shelf wear, may contain some notes or highlighting, corners/edges worn and bent, may not include companion materials like cdroms or access codes.
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Product Description
Praise for THE NEW RULES OF RETIREMENT
"As a Wharton graduate, money manager, Chief Financial Officer, and Certified Financial Analyst, I didn't think I needed help in making investment choices and planning for my retirement. I was wrong. I have been a subscriber to Retirement Watch since 1997. I trust Bob Carlson completely and follow his investment, tax, and planning advice personally."
--Sandy Kagan, CFA
CFO Partner, Tatum Partners
"A clear, practical, and wisely unconventional guide to the new world of retirement."
--Humberto Cruz
Nationally syndicated financial columnist, Tribune Media Services
"Bob Carlson does a magnificent job preparing readers for the many challenging issues they will face over the next several decades. Retirees can no longer count on generous asset returns and employer-provided defined benefit plans. Bob provides readers with creative approaches for contending with these challenges to help ensure financially and emotionally secure 'freedom years'."
--Lawrence E. Kochard, PhD, CFA
Chief Investment Officer, Georgetown University
"Bob Carlson shows that three trends--demographics (baby boomers), increasing longevity, and fewer offspring--have changed forever the landscape facing America's retirees. Stereotype retirement based on Social Security and employer pensions is out; making ends meet on your own is in. Better get yourself ready--and you can do so by reading this book."
--James C. Miller III
Former U.S. Budget Director, Chairman of The CapAnalysis Group, LLC
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| Customer Reviews: Read 1 more reviews...
 The New Rules of Retirment October 7, 2007
T. Watson (Rochester, NY USA)
5 out of 6 found this review helpful
This book had more detail on taxes and its effect on planning consequences then I have seen in other books. It have useful information on retirement calculators, and health coverage. Overall this book was more usable to me than some others I have read. It's easy to read and understand. It enlightened me on some points that I had not thought of such as doing your homework on moving to a different location, living and renting in a location where you want to go. You might end up not wanting to move there.
Agree with 90% of the recommendations September 23, 2007
Dale C. Maley (Fairbury, IL United States)
11 out of 12 found this review helpful
Over-all, this is a very thorough review of the rules of retirement.
I am a believer in the passive index fund approach to investing as opposed to the actively managed approach.
Carlson advocates 3 levels of investments for the accumulation phase, and all 3 are based on an active versus passive management approach. The first level is his Core level and he recommends actively managed value stock funds.....or actively managed balanced funds (stocks and bonds) like Vanguard's Wellington. I think most investors would be better
served using a combination of Vanguard's Total Stock Market and Total Bond Market funds for this core portfolio. The ratio of stocks to bonds depends on the investor's risk tolerance, as well as their need to take risk. Using Vanguard's passively managed index funds versus Carlson's actively managed approach should result in higher returns to the investor because of the lower annual expenses of the index funds.
Carlson recommends large cap value funds because his theory is that in retirement....retirees can give up some returns in exchange for lower chances in the portfolio declining with value stocks. The Fama-French 3 factor study would suggest that large cap value stocks will outperform all large cap stocks....if history repeats itself in the future. If you believe that history will repeat itself, you could choose a Vanguard large cap value index fund instead of the Total Stock Market fund.
Carlson's other 2 levels of portfolios focus on trying to pick in advance, which asset classes are currently not over-valued.....or be really aggressive and take on high risks with private equity funds. These two strategies are high risk and I know of no long term data which supports this approach performing better than a simple index fund approach. I don't believe either of these 2 strategies is appropriate for most investors.
Bengen's and Bierwirth's studies back in 1994 were seminal events in financial planning in that they found 4% was the maximum SWR (Safe Withdrawal Rate). If the stock market experiences a prolonged drop early in a retirement period, SWR's higher than 4% will cause the retiree to exhaust his portfolio before this death.
In 1998, the Trinity Study also found the same basic results as Bengen and Bierwirth.....and recommended a maximum SWR of 4%.
I have read about some mechanical rules which suggest that you can withdraw more than 4% if you spend less money in years the stock market is down, and more money when it is up. Carlson suggests the Yale distribution rule....in which 30% of the annual distribution is based upon portfolio value. I had not heard of this specific rule before, and I will have to do some Monte Carlo analysis to determine its effectiveness.
I found the book easy to read.....and I agree with his recommendations except for the construction of his investment portfolios.
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A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition
The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On With Your Life
The Bogleheads' Guide to Investing
Warnings with hope and answers September 28, 2006
Colin T. Nelson (Minneapolis, MN)
12 out of 17 found this review helpful
As the author of a similar book entitled, "When Can I Tell My Boss, I Quit!," I offer Mr. Carlson the highest compliment: I used his book in the research for my book. He alerts the reader to impending problems facing the new retirees but also offers many solid and creative solutions. Mr. Carlson's book is well researched and thorough but easy to read. I've re-read it several times to answer questions I have.
Great book. July 13, 2006
T. Downing
15 out of 17 found this review helpful
I'm getting down to the specifics about my retirement plans, eg--how much do I need in investments, what do I need to do about health insurance, where should my investments be, which investments do I withdraw and when, can I reduce my income before I retire & still make it, etc. I've read several books and so far this is by far the best. It's extremely readable, very specific, covers the big questions well, and takes a common-sense approach. I have a great financial planner but I want to educate myself, too--and I'm recommending this book to my financial planner!
Just what you need to understand what you face...solid February 23, 2005
James Kerr (Virginia)
60 out of 60 found this review helpful
If you only read one sentence,let me say this -- this book is a straightforward description of what anyone needs to think about when investing in the new environment, and it isn't a gimmick book with a quick answer.
This book is clear, solid, thorough and sensible on what faces investors today, whether you are in retirement or planning for retirement. The environment is different now -- we live longer, interest rates are lower, the stock market will see ups and downs, and most of us don't have adequate pension plans -- and Carlson clearly explains why the simple rules of thumb and simple strategies from the past just don't fit anymore. For example, he is persuasive in laying out why index investing is not appropriate for many investors. Also, he makes it clear you need to make your own retirement spending budget, not rely on rules of thumb. He also discusses the risk of "buy and hold" strategies. In short, the background to make your critical decisions -- whether about investing, what type of IRAs, annuities, or health care -- is all here.
A final note -- personally, I like the tone of this book. It's very clear and very informative, but it is not a gimmick book oversimplifying things, which is good, because investment and planning for retirement is a serious topic.
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| Worthwhile Reading | Three Tips to Help Planning Retirement
By Brenda Cyr
Thinking about retirement is not usually on the top of our list of things to do. Then suddenly we reach the point in out life when retirement is close to becoming a reality. At that point, you really need help in planning your retirement. Sure, we think about it from time to time, but never take any action on our thoughts. Don't let lack of action destroy your retirement, and leave you working well into your seventies. Use these three tips to help plan your retirement and to get started today.
1. Be Realistic about Retirement. Most people don't take the time to sit down and figure out how much money they will need for their retirement. Here is an easy way to plan what you'll need for retirement. Take the amount of money you are now living on per year, and subtract the amount of money you can save once the kids move out, and you downsize to a smaller home and car. Take that amount and multiply it by how many years you think you will need to live on your savings. The average life expectancy is 80 years.
2. Make a Budget. This will be one of the biggest helpers for planning retirement finances. Take out a sheet of paper and write down all your monthly expenses. Include your utilities, credit cards, groceries, and everything that you spend money on through the month. Make sure that you add a set amount for retirement savings. The next step is to subtract this amount from your take home income. Do you have anything left over? If you do, that is excellent. You can use these savings for a rainy day account.
3. Cut Back on Expenses. You already knew this was coming. You have a budget, and know what you are spending; now it's time to see where you can cut back so you can put more money into your retirement account. You don't have to cut out all the luxuries in your life, but you might find that by renting movies more often, rather than taking the family to the theater will let you enjoy more luxuries when you retire.
These three tips will help you get started saving for your retirement. Of course, there are many resources available to help planning for retirement. There are many aspects of retirement to consider as well- your health, your social life, your leisure activities and hobbies. By following these three tips, you will be taking action to help you plan for the best retirement possible.
Are you really ready to retire? Get our free report- How to Supercharge Your Retirement, and make sure you can enjoy the retirement you deserve. Visit http://www.RetirementPlanningHandbook.com today.
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| | Retirement Facts | | Whether a worker is offered and participates in a retirement plan at work depends greatly on what type of worker the person is:
• Public-sector workers have the highest level of participation in a retirement plan (75.8% in 2004), while parttime workers typically are not offered a retirement plan or rarely participate when they are.
• Among all workers, less than half (41.9% in 2004) participate in a retirement plan.
• Among full-time, full-year wage and salary workers, more than half (56.6% in 2004) participate in a retirement plan.
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