Comments on: Review: You’re Fifty, Now What?

By: katy

katy — Wed, 04 Jun 2008 12:39:06 +0000

I’m 47 and this was a great post. I recommend Fred Brock’s books retire well on less than you think and retirement on a shoestring.

Luck and love to all.

By: John

John — Sun, 01 Jun 2008 20:26:41 +0000

I agreed with most of the comments, except needing disability insurance in retirment. I’am proud of the fact I helped start ltc. insurance where I worked before I retired.

By: Lurker Carl

Lurker Carl — Sat, 31 May 2008 20:33:39 +0000

@Lo.Price – Most folks in the first half of life can’t purchase a home without going into debt. Disposing of that mortgage by age 50 will go a long way toward saving serious money for the second half of life. High interest debt is a relative term, remember the interest rates back in 70′s and 80′s? Mortgages and credit cards hovered around the same interest rate because most states limited the maximum interest rate credit cards could charge. And a 5 year CD paid 15% interest – your money more than doubled after 5 years!

By: A.M.B. A.

A.M.B. A. — Sat, 31 May 2008 13:41:23 +0000

I’m in this age group and really appreciate you addressing topics that pertain to us. It serves as a reminder that your readers do come in all income brackets and ages. I enjoy reading your blog and keep up the good work. I don’t mean to sound like your parents, but turning fifty will come sooner than you can imagine.

By: Lo. Price

Lo. Price — Sat, 31 May 2008 01:07:55 +0000

As to #4 above: 60% in equities until age 80 is not that crazy. Unlike past generations, the biggest risk now is not losing half your portfolio to a bear market, but instead outliving your retirement. The only way to keep up with inflation (which will double your cost of living in about 24 years at 3%) and not outlive your portfolio is to invest in stocks. Also, he is not necessarily predicting the lifespan of the average retiree, but the average lifespan of those reading his book. To be blunt, the people reading his book are probably not on the lower end of the socio-economic spectrum and they tend to have lower life expectancies, pulling down the averages.
@Russ: One warning about tracking net worth; net worth will undoubtedly fluctuate with the rise and fall of the stock market. People in well-diversified portfolios undoubtedly lost 1/3-1/2 or more of their “net worth” from 2000-2002. Just because your net worth decreases (because of the market) doesn’t mean you should fret or make changes to your retirement plan.
@Lurker: I don’t really understand your comment: “I would think little or no debt by age 50 would be a major component of any strategy for the second half of life.” Little or no debt by 50 would be a major component of a strategy for the first half of life, that is, the half of life before 50, which is probably why he doesn’t go into it much. If you are 50, there is not much more you can say than reduce debt as much as possible, especially high-interest debt, and try to have your mortgage paid off by retirement. If you are seriously in debt at 50 which you are having trouble paying, you can’t really be thinking about retiring in 10-15 years.

By: George

George — Fri, 30 May 2008 21:07:49 +0000

@Lola -

Take a serious look at your expense-income ratios when considering your midlife crisis retirement.

The one thing that finally sank in was that if I quit the day job even a year earlier than my investments allowed and then took on a part-time job at lower wage is that I would be tied to that part-time job forever. Much less preferable to being able to really quit forever!

By: Lola

Lola — Fri, 30 May 2008 18:15:37 +0000

Now what? Now I’m thinking about retiring. I’m 40, my hubby’s 50, we don’t have enough money to stop working, but we’re seriously thinking about working as little as possible, something like ten hours a week each, only making enough money to make ends meet (we live very frugally). Maybe we’re just not ambitious enough, or maybe we’re just very happy doing what we do now, which is not much. Midlife crisis, anyone?
http://www.escrevalolaescreva.blogspot.com

By: dugsdale

dugsdale — Fri, 30 May 2008 18:11:29 +0000

Thanks, Trent, for the book review. I turn 63 in a week, somehow missed out on a solid pension (“somehow” thanks to a mix of stupidity, denial, and a freelance career in the arts) and I find myself VERY appreciative when books like this come along, since I expect to keep working (out of necessity at least part-time) right up until I join the Choir Angelic.

So I’ll buy this baby, and complement it with “Start Late Finish Rich,” which I’m working my way through (thanks for that one too, Trent).

By: !wanda

!wanda — Fri, 30 May 2008 17:47:05 +0000

My grand-advisor (advisor’s advisor) must be over 70 now, and he’s still running a lab, publishing papers, and presumably making his grad students cry. Old professors get good pensions, so he must be working because he enjoys it. That seems to me the ideal kind of retirement.

By: MoneyEnergy

MoneyEnergy — Fri, 30 May 2008 17:44:30 +0000

You’re right about the book _The Number_. Written in a very entertaining, journalistic style, but leaves you more anxious than anything about what to do.

I recall his horrid descriptions of Sun City, Arizona. But there were some really good tidbits in there: books and other authors that I thought I should look up. I’ll still go back to that book to check them out.

So I’ll remember your recommendation on this one when it’s next time to buy my parents a gift.

By: !wanda

!wanda — Fri, 30 May 2008 17:42:07 +0000

@Lurker Carl: Let’s give the author the benefit of the doubt. After all, he tells you not to use the services of someone like a Charles Schwab retirement consultant. Maybe he’s never been in serious debt, so he doesn’t think it’s important or can’t write about it well? Maybe getting rid of debt is such an obvious move to him that it’s not worth writing much about?

By: Debbie M

Debbie M — Fri, 30 May 2008 17:30:41 +0000

This comment is in response to your comment on “still searching for a truly strong book on retirement-related issues to recommend.”

I’m reading a good book on retirement right now written for middle-aged folks: Ralph E. Warner’s _Get a Life: You Don’t Need a Million to Retire Well_. It addresses mostly issues other than finances such as what to do with yourself all day, maintaining social contacts, and keeping in shape. Basically, it’s about how to stay happy and healthy after retirement.

This book confirms a lot of odd things I’ve always thought (like sometimes grown-ups forget how to have fun), but also shows me some big gaping holes in my life that could negatively impact my happiness if I’m not careful (like not staying close with my family, not staying religious, and focusing too much on physical activities for my social interactions).

I’m not done yet, but so far it’s very interesting and I highly recommend it.

By: Easton

Easton — Fri, 30 May 2008 17:27:44 +0000

Hi all,

I work for a law firm that is investigating the Schwab Retirement Income Fund (SWARX). The law firm is investigating whether the company misled investors about the diversification and safety of the investment fund.

Specifically, HBSS is looking at whether Fidelity misled investors about the underlying risk in the funds. This includes exposure to the risky sub-prime mortgage market through the inclusion of funds like YieldPlus mutual funds as a part of the Schwab Retirement Income Fund.

You can learn more about the investigation at http://www.hbsslaw.com/swarx or contact the firm at (206) 623-7292.

Thought you might be interested….
-Easton

By: Lurker Carl

Lurker Carl — Fri, 30 May 2008 17:23:04 +0000

If you’re wondering why he glossed over debt, it probably has to do with how his financial empire makes money. Most banks make a tidy profit from keeping most folks deep in debt.

I would think little or no debt by age 50 would be a major component of any strategy for the second half of life. It’s much easier to save or conserve money if you’re reaping interest instead of paying it.

Yet another good reason to consult a variety of opinions when financially planning your future.

By: rocketc

rocketc — Fri, 30 May 2008 16:09:38 +0000

I’m glad you included the importance of charitable giving.

By: Bill@TheWealthHunter

Bill@TheWealthHunter — Fri, 30 May 2008 15:59:18 +0000

Thanks so much.
What a perfect book for me – I just turned 50.
Gotta read it.
Keep posting.
Bill

By: Russ

Russ — Fri, 30 May 2008 15:31:57 +0000

I agree with the importance of tracking net worth, and have recently bought a large piece of graph paper on which I plot my monthly net worth, using the gradually-rising line as motivation.

However, I only get mortgage statements annually, and certainly don’t get my house valued every month – so, I tend to ignore mortgage balance and equity when calculating my net worth.

Does anyone else keep close track of mortgage debt and home equity when working out net worth?

By: Frugal Dad

Frugal Dad — Fri, 30 May 2008 14:16:57 +0000

My mom will be incredibly disappointed to know it will take more than $100k to retire…LOL! I seriously think she plans on working her entire life, but because she raised me as a single mom I can’t fault her for a lack of retirement savings. She did the best she could to get me off on the right foot, and hopefully one day I can help her as well.

I’m always interested in hearing what multiple the various experts use to calculate the projected balance we’ll need to live off in retirement. The divide by 12, multiple by 230 formula does seem arbitrary, but it gets me close to the number I carry around in my head. Thanks for writing up this review.

By: Maria - Never the Same River Twice

Maria - Never the Same River Twice — Fri, 30 May 2008 14:07:40 +0000

Helping your parents (or inlaws) plan for retirement is such a difficult and emotionally touchy subject. I recently found out that my mother – who is in the age bracket appropriate for this book – has all of her 401k in the cash account!! I knew she is risk averse, but come on!

Trent, do you have any advice for de-emotionalizing these types of conversations, because I really don’t want to end up strangling my parents?!