In my first book, RENDEZVOUS WITH RETIREMENT: A Guide to Getting Fiscally Fit, I lay out a six phase process for getting fiscally fit and preparing for a comfortable, secure retirement.
This Second Edition starts with a Foreword by Brian D. Tramuel, followed by updated information on how Americans are preparing for retirement, shares new content on living more frugally, and presents a new philosophy on home ownership.
The phases include honestly assessing your current financial situation and making adjustments, conducting preparatory actions, determining goals, investing, tracking investments, and drawing down your nest-egg.
Your Guide to Retirement Planning
Honestly assessing your situation and making adjustments involves analyzing your monthly expenses, reducing those expenses as much as possible, and increasing income.
Conducting preparatory actions involves managing your budget, establishing an emergency fund, educating yourself on personal finance terminology and concepts, checking your credit report, and understanding your Social Security options.
Determining your goals involves quantifying your retirement objectives and transitioning your budget from one that is focused on paying debts to one that is focused on acquiring and managing assets.
Investing outlines how to put your earned income to work in retirement plans (e.g. 401ks and IRAs), understanding the power of compound interest, and adopting the behavior of paying yourself first.
Tracking investments informs the reader that a retirement plan is not static, it is not a one and done event. It is dynamic and always changing, just as goals and the investing environment are always changing. Additionally, an introduction – with a powerful example – is made to the RWR Simple Retirement Planner, a tool for managing and tracking investment goals.
Drawing down your nest-egg discusses the importance of having a plan to successfully withdraw money in retirement – considering factors such as the rate of withdrawal and the order of withdrawal from various retirement accounts – in such a way to ensure that your nest-egg lasts 25+ years if necessary.
RENDEZVOUS WITH RETIREMENT walks the reader through developing a comprehensive savings and investment plan for securing a comfortable retirement, while reflecting on my personal journey to fiscal fitness. It provides guidelines for how individuals can determine how much money they will need – or desire – in retirement, necessary actions associated with retirement planning, behaviors that should be adopted in pursuit of fiscal fitness, provides the requisite tools for planning, provides suggested guidelines for funding various retirement accounts, and highlights various personal finance philosophies.