The New Savage Number How Much Money Do You Really Need to Retire?
, by Savage, Terry
- ISBN: 9780470538760 | 0470538767
- Cover: Paperback
- Copyright: 9/28/2009
Will you ever be able to retire? How much money will you need? And how will you be able to reach your Savage Number? Financial expert and author Terry Savage offers street-smart advice for those hoping to retire. Whether you're approaching retirement age, just starting out, or in the middle of your career, Savage helps you create a long-term plan for financial security.
Terry Savage has financial expertise that comes from experience. She started her career as a stockbroker and became a founding member of-and the first woman trader on-the Chicago Board Options Exchange. Terry is a nationally known expert on personal finance and is a regular TV investment and financial markets commentator. She is the nationally syndicated Chicago Sun-Times personal finance columnist, contributor to TheStreet.com, and author of three bestselling books. Terry has won numerous awards, including the National Press Club Award, and received two Emmys for her television work.
| Preface | p. xv |
| Introduction: Can You Retire? | p. 1 |
| Retro-Retirement | |
| The Savage Number | p. 7 |
| Shaping Retirement Reality | p. 9 |
| Avoiding Generation Warfare | p. 12 |
| Hoping for a Miracle? | p. 14 |
| You're Not Alone | p. 15 |
| The Likely Solution: Retro-Retirement | p. 17 |
| The Starting Point | p. 18 |
| Time Is Money | p. 19 |
| Consuming Time and Money | p. 21 |
| Running Out of Time | p. 22 |
| What's Your Time Worth? | p. 23 |
| The Time Value of Money | p. 24 |
| How to Avoid Wasting Time (and Money) | p. 25 |
| The 10 Key Questions | p. 27 |
| How Long Will I Live? | p. 29 |
| What Will Inflation Do to the Value of My Savings? | p. 30 |
| How Can I Save Enough? | p. 31 |
| How Should I Invest the Money I've Saved for Retirement? | p. 32 |
| How Much Will I Spend to Live in Retirement? | p. 33 |
| How Much Can I Withdraw Each Month without Running Out of Money? | p. 34 |
| What's the Biggest Danger to My Retirement Plans? | p. 35 |
| How Can I Earn Money during Retirement? | p. 36 |
| How Can I Retain Control of My Financial Life? | p. 37 |
| What If I Have Money Left Over When I Die? | p. 38 |
| Getting the Answers | p. 39 |
| Getting Your "Ballpark Estimate" | p. 40 |
| Monte Carlo Your Money | |
| The Savage Answer: Monte Carlo Modeling | p. 45 |
| Monte Carlo Modeling: How It Works | p. 46 |
| Beware of Averages | p. 48 |
| Monte Carlo Modeling and Retirement Planning | p. 52 |
| Monte Carlo and You | p. 56 |
| Do-It-Yourself Monte Carlo: ToolsforMoney.com | p. 58 |
| Saving Up, Drawing Down | p. 59 |
| Accumulation Phase | p. 61 |
| Withdrawal Phase | p. 63 |
| The Right Balance | p. 64 |
| Seven Best Ways to Save for Retirement | p. 65 |
| Getting It All Together | p. 69 |
| Online, on Paper, on Your Computer | p. 71 |
| Free Online Money Management | p. 72 |
| The Basics: Paying Bills Online | p. 74 |
| Organizing Your Online Financial Life | p. 76 |
| A Credit Checkup | p. 78 |
| Portfolio Tracking | p. 79 |
| Quicken | p. 80 |
| Morningstar | p. 81 |
| Moving Beyond Tracking-to Advice | p. 85 |
| Resources for Getting It Together | p. 85 |
| A Road Map to Monte Carlo | p. 87 |
| The Best Routes | p. 90 |
| Financial Engines | p. 91 |
| Morningstar Asset Allocator | p. 93 |
| T. Rowe Price | p. 94 |
| Fidelity | p. 95 |
| Vanguard | p. 96 |
| Financial Planners | p. 98 |
| Arriving in Monte Carlo | p. 99 |
| Choosing a Financial Adviser | p. 100 |
| Investing for Retirement | |
| Stocks, Bonds, and Chicken Money | p. 105 |
| Realistic Stock Market Expectations | p. 108 |
| Stock Market Returns-Then and Now | p. 109 |
| Historic Returns-The Big Picture | p. 110 |
| Long Term-Do You Have 20 Years? | p. 112 |
| Persuasive Perspective | p. 113 |
| Opportunity of a Lifetime? | p. 114 |
| What to Expect-The Next 20 Years | p. 116 |
| Understanding Bonds | p. 119 |
| How You Can Lose Money in Bonds | p. 120 |
| The Advantage of Bond Funds | p. 121 |
| Total Return, Total Risk | p. 122 |
| Stocks versus Bonds-An Alternative? | p. 125 |
| Keep Your Nest Eggs Safe with Chicken Money | p. 125 |
| Chicken Money Investments | p. 126 |
| Chicken Money and Risk | p. 128 |
| A Minute on Mutual Funds | p. 128 |
| Resources for Stocks, Bonds, and Chicken Money | p. 130 |
| Beyond the Basics | p. 133 |
| Exchange-Traded Funds | p. 135 |
| Real Estate Investment Trusts | p. 137 |
| Gold and Natural Resources | p. 138 |
| The U.S. Dollar | p. 140 |
| Options | p. 141 |
| Futures | p. 142 |
| Hedge Funds | p. 144 |
| Resources for Investing | p. 146 |
| One-Step Retirement Investing | p. 149 |
| Buying the Whole Market | p. 151 |
| Index Mutual Funds | p. 151 |
| Exchange-Traded Funds: Spiders | p. 152 |
| Futures: E-mini S&P 500 | p. 152 |
| Retirement Investing Made Easy: Targeted Retirement Funds | p. 153 |
| How Targeted Retirement Funds Work | p. 154 |
| Comparing the Companies | p. 155 |
| Starting Small-No Excuses! | p. 157 |
| U.S. Global Funds-ABC Plan | p. 158 |
| ShareBuilder | p. 158 |
| Make the Call | p. 159 |
| Streams of Retirement Income | |
| Where Will the Money Come From? | p. 163 |
| The Balancing Act: Income versus Principal | p. 165 |
| Gainful Employment in Retirement | p. 166 |
| Withdrawals from Retirement Accounts | p. 168 |
| Where and When to Withdraw | p. 168 |
| Required Minimum Distributions and Required Beginning Date | p. 170 |
| Getting It Right | p. 171 |
| Generating Income from Your Portfolio | p. 172 |
| Laddering: A Bond Strategy for Retirement | p. 172 |
| Covered Call Writing to Add Investment Income | p. 173 |
| Income Resources | p. 175 |
| Annuities for Income and Tax-Deferred Growth | p. 177 |
| Immediate Annuities | p. 179 |
| Tax-Deferred Annuities | p. 181 |
| Fixed-Rate Tax-Deferred Annuities | p. 182 |
| Variable Tax-Deferred Annuities | p. 182 |
| The Latest Annuity Products | p. 183 |
| Guaranteed Minimum Income Benefits | p. 183 |
| Equity-Indexed Annuities: A Warning | p. 186 |
| Tax-Deferred Annuity Withdrawals | p. 188 |
| Tax-Deferred Annuity Exchanges | p. 188 |
| Your IRA Inside an Annuity? | p. 189 |
| Annuities: The Real Risk Factor | p. 190 |
| Annuity Information and Pricing | p. 191 |
| Social Security and Medicare | p. 193 |
| Social In-Security | p. 194 |
| How Much Can You Expect? | p. 196 |
| How Much Can You Earn? | p. 198 |
| How to Apply for Benefits | p. 199 |
| Medicare | p. 200 |
| Medicare Enrollment | p. 200 |
| How Medicare Works | p. 201 |
| Medicare Supplement Policies | p. 202 |
| Medicare Prescription Coverage-Part D | p. 203 |
| A Final Thought about Social Security and Medicare | p. 204 |
| Government Benefit Resources | p. 204 |
| How to Turn Your Home into Your Pension | p. 205 |
| Reverse Mortgages | p. 206 |
| Reverse Mortgage for Income | p. 207 |
| Reverse Mortgage for Purchase | p. 209 |
| More Income from Your House Using Trusts | p. 210 |
| Installment Sale | p. 210 |
| Private Annuity Trust | p. 211 |
| Reverse Mortgage Resources | p. 213 |
| Long-Term Care: The Greatest Risk of All | |
| Long-Term Care Insurance: Who Needs It? | p. 217 |
| The Government's Role in Long-Term Care | p. 219 |
| Insurance for Your Retirement | p. 222 |
| Our Parents, Ourselves | p. 223 |
| Long-Term Care Insurance: A Woman's Issue | p. 224 |
| What If You Don't Use It? | p. 225 |
| Why You Shouldn't Procrastinate! | p. 226 |
| Long-Term Care-The Facts | p. 227 |
| How to Understand Long-Term Care Coverage | p. 229 |
| Rising Demand, Soaring Costs | p. 231 |
| When to Buy? While You Can! | p. 232 |
| How Do I Use My Policy? | p. 234 |
| What Should My Long-Term Care Policy Cover? | p. 235 |
| Elimination Period | p. 235 |
| Daily or Monthly Benefit | p. 236 |
| Length of Benefit | p. 236 |
| Inflation Protection | p. 237 |
| Reimbursement Policy | p. 237 |
| Guarantee Period | p. 238 |
| Spousal Discounts | p. 239 |
| Intergenerational Transfers | p. 239 |
| Care Coordinators | p. 240 |
| Optional Riders | p. 240 |
| Partnership Programs | p. 241 |
| International Coverage | p. 242 |
| Key Elements of a Long-Term Care Insurance Policy | p. 242 |
| Buying Your Long-Term Care Policy | p. 243 |
| Which Insurance Company Should You Choose? | p. 244 |
| What Should It Cost? | p. 245 |
| 10-Pay: Controlling Price Risk | p. 246 |
| Long-Term Care Policies and Income Taxes | p. 247 |
| Paying for Long-Term Care with Life Insurance and Annuities | p. 248 |
| Acceleration Riders | p. 249 |
| Blended Life Insurance Policies | p. 249 |
| Blended Annuities | p. 250 |
| Employee Group Long-Term Care Policies | p. 251 |
| The Federal Long-Term Care Insurance Program | p. 252 |
| Long-Term Care Insurance from Affinity Programs | p. 252 |
| A Final Argument: The Cost of Not Having Long-Term Care Insurance | p. 253 |
| Resources for Purchasing Long-Term Care Insurance | p. 254 |
| Estate Planning: The Price of Success | |
| What's Left? | p. 259 |
| What Could Happen? | p. 261 |
| What Is Your Estate? | p. 263 |
| What Are Estate Taxes? | p. 263 |
| What Is Probate? | p. 264 |
| What Is a Revocable Living Trust? | p. 265 |
| Health-Care Power of Attorney | p. 266 |
| Living Will | p. 266 |
| Durable Power of Attorney | p. 267 |
| Naming Retirement Plan Beneficiaries | p. 267 |
| Your 401(k) Plan Beneficiary | p. 268 |
| Your IRA Beneficiary | p. 269 |
| What Else Should You Consider? | p. 271 |
| Guardianship of Children | p. 271 |
| Bequests to Minor Children | p. 271 |
| Trusts for Disabled Adult Children | p. 271 |
| Division of a Business | p. 272 |
| Moving Assets Out of Your Estate | p. 272 |
| 529 College Savings Plans to Avoid Estate Taxes | p. 273 |
| Reverse Mortgage to Fund Life Insurance Outside the Estate | p. 273 |
| Life Insurance and Your Estate | p. 274 |
| What Kind of Life Insurance Do You Need? | p. 274 |
| Keep Life Insurance Outside Your Estate | p. 275 |
| Changing Policies | p. 276 |
| Spouses and Estate Planning | p. 276 |
| Choosing an Estate Planner | p. 278 |
| Estate Planning Checklist | p. 279 |
| Conclusion | p. 281 |
| Acknowledgments | p. 283 |
| Index | p. 287 |
| Table of Contents provided by Ingram. All Rights Reserved. |
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