Retirement

Review: The Bogleheads’ Guide to Retirement Planning

Every other Sunday, The Simple Dollar reviews a personal finance book. Ever since I first gave it a sincere read-through in late 2006, The Bogleheads’ Guide to Investing has been my go-to guide for investment advice, the first place I turn when I have a question about investing. My paperback copy is now well-worn and …

Passing the Blame: Some Thoughts on the 401(k) Crisis

A couple days ago at the doctor’s office, I picked up the newest issue of Time, which featured a cover story entitled “Why It’s Time to Retire the 401(k)” (and you can read the article online). The article was filled with lots of stories about individuals close to retirement age who lost a large portion …

Categories: Retirement

What Matters Most to You? Planning for a Very Long Life

Marcia writes in: I’m having a hard time figuring out exactly how much to put away for retirement each week. I’m twenty five years old and most of the advice says to put away 10% of your salary into your 401(k) but I think I should be putting away more. I have three great grandparents …

Categories: Retirement

Having Enough for Life

I am absolutely honored to feature a guest post today by Vicki Robin, someone who I’ve had the privilege to get to know a little over the last year or so. Vicki is co-author of Your Money or Your Life, one of the books that changed my life. Currently, Vicki is teaching tele-classes about money …

The Total Money Makeover: Maximize Retirement Investing

This is the eighth of twelve parts of a “book club” reading and discussion of Dave Ramsey’s The Total Money Makeover, where this book on debt reduction is teased apart and looked at in detail. This entry covers the ninth chapter, finishing on page 167. The next entry, covering the tenth chapter, will appear on …

Over-Saving for Retirement?

Haruki writes in: I am putting 15% of my salary into my 401(k) which gets a 5% match from my employer. I also contribute the max to my Roth IRA. I followed up with Haruki and found that his salary is $46,000 per year and he’s twenty seven years old, just for calculation’s sake. So …

Categories: Retirement

Rothe IRA vs. 401k: Taxes & The Future

One big point that I often bring up in favor of Roth IRAs is the fact that you’ve already paid your income taxes on it. When you take money out of your Roth IRA at retirement age, you don’t have to pay income taxes on any of your withdrawals. On the other hand, with a …

Categories: Retirement, Taxes

What’s Next After Retirement Savings?

Quite often, financially intelligent young professionals get out of school, start in the professional world, and actually stick quite strongly to the “spend less than you earn” mantra. They fund their Roth IRAs and their 401(k)s, but they still find themselves spending much less than they’re bringing in. And they wonder what’s next. “Fred” writes …

Saving for College or Saving for Retirement: What’s Best for Us?

This past weekend, my wife and I were watching Clark Howard’s show on Headline News. During the program, Clark stated a canard that I’ve heard several times from personal finance “gurus” over the past couple years: instead of saving for a child’s college education, parents are better off saving for their own retirement. Clark’s main …

Categories: Education, Retirement

Review: Work Less, Live More – The Way to Semi-Retirement

Every other Sunday, The Simple Dollar reviews a personal finance book. Even before I began my financial turnaround, I dreamed of being able to settle into some form of “semi-retirement” around age fifty or so (when the children are out on their own). I dreamed of spending mornings working on my writing, spending my afternoons …

The Boomers Go Bust: What Can We Learn?

This started off as an email to a reader, but I thought that many other readers might find this of some value. Recently, I received a long email from a very distraught woman (that I’ll call Mary) who has finally come to the realization that she will not be able to retire in seven years …

Categories: Retirement

New Year’s Resolution Workshop #1: Get Started with Retirement

Over the next few days, we’re going to take a look at five common New Year’s resolutions that people often adopt for their finances, evaluate some of the traps that people fall into with regards to that resolution, and come up with some real actions that can turn a challenging New Year’s resolution into a …

Categories: Retirement

Retirement Plans in a Down Stock Market

After writing my piece yesterday on fear and the economic situation, a very eloquent reader named “Maggie” wrote to me: I completely agree with your assessment on the economy, particularly if you’re young. There is no crisis that is well served by panic and I don’t think that the current economic situation is anywhere near …

Categories: Investing, Retirement

Rethinking Retirement

Yesterday, I had a long conversation with a friend of mine, mostly about what we plan to do for the rest of our lives. I told him about my plans and dreams – writing, volunteer work, local politics, and so on – and I also mentioned how I was saving carefully for retirement. Right then, …

Categories: Retirement

The Retirement Perspective

Lois had an interesting question about retirement: I asked if, by calculating our monthly expenses, we could multiply that by 200, and if that would be enough to retire. So, if one’s expenses were about $24,000 a year, if having $480,000 would be enough. And you said – rightly so – that this figure doesn’t …

The Big Debate #4: Pay Off Debt or Save for Retirement?

This week, The Simple Dollar is taking a deeper look at five common personal finance debates. Once a day or so, I’ll get a long email from someone pouring out the details of their personal finance situation. Quite often, they’ve reached an age where they’re starting to seriously worry about retirement and have realized that …

Do You Need to Leave an Estate?

One of the most common topics in personal finance writing is estate planning. Life insurance? A will? A living trust? These are always bandied about and readers are always encouraged to get on board with all of these things. What’s often not asked is whether or not estate planning really even applies to you at …

Categories: Money, Retirement

Review: You’re Fifty, Now What?

Each Friday, The Simple Dollar reviews a personal finance book. Lately, as my parents and my wife’s parents begin to inch towards retirement, I’ve become quite interested in looking at the financial issues they face at this point in their lives. Their situations are very different – the one thing they have in common is …

My Retirement Portfolio As I Approach 30

Very soon, I will be celebrating my 30th birthday, and I thought it would be interesting to take a look at my retirement portfolio as it currently sits. I’ve rounded each amount to the nearest $100 to make the math easier as I evaluate where I’m at and what my future plans may be. My …

Categories: Investing, Retirement

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