{"product_id":"the-essential-retirement-guide-isbn-9781119111122","title":"The Essential Retirement Guide","description":"\u003cp\u003eRetirement planning is difficult enough without having to contend with misinformation. Unfortunately, much of the advice that is dispensed is either unsubstantiated or betrays a strong vested interest. In \u003ci\u003eThe Essential Retirement Guide, \u003c\/i\u003eFrederick Vettese analyses the most fundamental questions of retirement planning and offers some startling insights. The book finds, for example that:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eSaving 10 percent a year is not a bad rule of thumb if you could follow it, but there will be times when you cannot do so and it might not even be advisable to try.\u003c\/li\u003e \u003cli\u003eMost people never spend more than 50 percent of their gross income on themselves before retirement; hence their retirement income target is usually much less than 70 percent.\u003c\/li\u003e \u003cli\u003eInterest rates will almost certainly stay low for the next 20 years, which will affect how much you need to save.\u003c\/li\u003e \u003cli\u003eEven in this low-interest environment, you can withdraw 5 percent or more of your retirement savings each year in retirement without running out of money.\u003c\/li\u003e \u003cli\u003eYour spending in retirement will almost certainly decline at a certain age so you may not need to save quite as much as you think.\u003c\/li\u003e \u003cli\u003eAs people reach the later stages of retirement, they become less capable of managing their finances, even though they grow more confident of their ability to do so! Plan for this before it is too late.\u003c\/li\u003e \u003cli\u003eAnnuities have become very expensive, but they still make sense for a host of reasons.\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIn addition, \u003ci\u003eThe Essential Retirement Guide\u003c\/i\u003e shows how you can estimate your own lifespan and helps you to understand the financial implications of long-term care. Most importantly, it reveals how you can calculate your personal wealth target - the amount of money you will need by the time you retire to live comfortably. The author uses his actuarial expertise to substantiate his findings but does so in a jargon-free way.\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART I The Retirement Income Target\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Road to Retirement 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDetours 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Doubts about the 70 Percent Retirement Income Target 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNiggling Doubts 10\u003c\/p\u003e \u003cp\u003eSaving for Retirement Is a Two-Dimensional Problem 14\u003c\/p\u003e \u003cp\u003eThe Macro Case Against 70 Percent 15\u003c\/p\u003e \u003cp\u003eLow-Income Workers 16\u003c\/p\u003e \u003cp\u003eConclusions 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Homing in on the Real Target 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSetting the Ground Rules 19\u003c\/p\u003e \u003cp\u003eHoward and Barb 21\u003c\/p\u003e \u003cp\u003eSteve and Ashley 1.0 23\u003c\/p\u003e \u003cp\u003eSteve and Ashley 2.0 27\u003c\/p\u003e \u003cp\u003eExpressing Consumption in Dollars 29\u003c\/p\u003e \u003cp\u003eConclusions 30\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 A New Rule of Thumb 33\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGuiding Principles 34\u003c\/p\u003e \u003cp\u003eRetirement Income Targets under Different Scenarios 35\u003c\/p\u003e \u003cp\u003eGeneral Rule of Thumb 38\u003c\/p\u003e \u003cp\u003eConclusions 40\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART II The Wealth Target\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Quantifying Your Wealth Target 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Rough-and-Ready Estimate 43\u003c\/p\u003e \u003cp\u003eA More Actuarial Approach 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Why Interest Rates Will Stay Low (And Why You Should Care) 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Rise of the Savers 54\u003c\/p\u003e \u003cp\u003eThe Japan Experience 57\u003c\/p\u003e \u003cp\u003eApplicability to the United States and Canada 58\u003c\/p\u003e \u003cp\u003ePossible Remedies 59\u003c\/p\u003e \u003cp\u003eImplications 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 How Spending Decreases with Age 65\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDoubts 66\u003c\/p\u003e \u003cp\u003eQuantifying the Decline in Consumption 68\u003c\/p\u003e \u003cp\u003eWhy Does Consumption Decline? 72\u003c\/p\u003e \u003cp\u003eNext Steps 73\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Death Takes a Holiday 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePresent-Day Life Expectancy 77\u003c\/p\u003e \u003cp\u003eDispersion of Deaths 78\u003c\/p\u003e \u003cp\u003eWho Is Benefiting the Most? 79\u003c\/p\u003e \u003cp\u003eWhy Is Mortality Improving? 80\u003c\/p\u003e \u003cp\u003eThe Future 82\u003c\/p\u003e \u003cp\u003eConclusions 85\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Estimating Your Own Life Expectancy 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConclusions 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Is Long-Term Care in Your Future? 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong-Term Care (LTC) 95\u003c\/p\u003e \u003cp\u003eWhat Does LTC Entail? 96\u003c\/p\u003e \u003cp\u003eWhat Are the Chances You Will Need LTC? 99\u003c\/p\u003e \u003cp\u003eHow Long Is LTC Usually Required? 101\u003c\/p\u003e \u003cp\u003eConclusions 102\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Paying for Long-Term Care 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTypical LTC Insurance Contract 103\u003c\/p\u003e \u003cp\u003eDoes the Math Work? 105\u003c\/p\u003e \u003cp\u003eThe Verdict 108\u003c\/p\u003e \u003cp\u003eThe Consequences of Not Insuring LTC 112\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Putting It All Together 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNew Wealth Targets 120\u003c\/p\u003e \u003cp\u003eBuffers 122\u003c\/p\u003e \u003cp\u003eConclusion 123\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART III The Accumulation Phase\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Picking a Savings Rate 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistorical Performance 127\u003c\/p\u003e \u003cp\u003eLessons Learned 129\u003c\/p\u003e \u003cp\u003eWhat the Future Holds 131\u003c\/p\u003e \u003cp\u003eGeneralizing the Results 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Optimizing Your Savings Strategy 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Goal 138\u003c\/p\u003e \u003cp\u003eStrategy 1: Simple 138\u003c\/p\u003e \u003cp\u003eStrategy 2: Simple Lifecycle Approach 139\u003c\/p\u003e \u003cp\u003eStrategy 3: Modified Lifecycle 140\u003c\/p\u003e \u003cp\u003eStrategy 4: Variable Contribution 141\u003c\/p\u003e \u003cp\u003eStrategy 5: The SMART Approach 142\u003c\/p\u003e \u003cp\u003eConclusion 143\u003c\/p\u003e \u003cp\u003eThe Third Lever 144\u003c\/p\u003e \u003cp\u003eMethodology 144\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 A Gentler Approach to Saving 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePath 1: Pain Now, Gain Later 148\u003c\/p\u003e \u003cp\u003ePath 2: Smooth and Steady Improvement 150\u003c\/p\u003e \u003cp\u003eA Comparison in Dollar Terms 153\u003c\/p\u003e \u003cp\u003eConclusions 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART IV The Decumulation Phase\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Rational Roulette 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCall to Action 161\u003c\/p\u003e \u003cp\u003eWatch Out for Your Children 163\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Revisiting the 4 Percent Rule 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe 4 Percent Rule 167\u003c\/p\u003e \u003cp\u003eProblems with the 4 Percent Rule 169\u003c\/p\u003e \u003cp\u003eA More Rational Spending Rule 173\u003c\/p\u003e \u003cp\u003eA Monte Carlo Simulation 176\u003c\/p\u003e \u003cp\u003eConclusions 177\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Why People Hate Annuities (But Should Still Buy One) 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Annuities Should Be Popular 180\u003c\/p\u003e \u003cp\u003eThe Psychology Behind the Unpopularity 183\u003c\/p\u003e \u003cp\u003eTontines 184\u003c\/p\u003e \u003cp\u003eThe Insured Annuity Strategy 185\u003c\/p\u003e \u003cp\u003eIndexed Annuities? Forget It 188\u003c\/p\u003e \u003cp\u003eConclusions 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART V Random Reflections\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 How Workplace Pension Plans Fit In 195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Employers Offer Workplace Plans 196\u003c\/p\u003e \u003cp\u003eGetting the Most out of Your Workplace Plan 198\u003c\/p\u003e \u003cp\u003eHow a Workplace Pension Plan Affects Your Dollar Target 202\u003c\/p\u003e \u003cp\u003eOnline Forecast Tools 203\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Bubble Trouble 205\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Worry about Financial Bubbles? 206\u003c\/p\u003e \u003cp\u003eExamples of Recent Financial Bubbles 207\u003c\/p\u003e \u003cp\u003eCommon Characteristics 211\u003c\/p\u003e \u003cp\u003eThe Everything Bubble 212\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21 Carpe Diem 215\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Numbers 217\u003c\/p\u003e \u003cp\u003eHealthy Life Years 219\u003c\/p\u003e \u003cp\u003eTrends 221\u003c\/p\u003e \u003cp\u003ePersonal Genome Testing 222\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 A Life Well Lived 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRetirement and Happiness 225\u003c\/p\u003e \u003cp\u003eFinal Thoughts 229\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix A Similarities between the United States and Canada 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSocial Security Programs 232\u003c\/p\u003e \u003cp\u003eHigh-Level Comparison of Retirement Vehicles 235\u003c\/p\u003e \u003cp\u003eA Tax Comparison 238\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix B Social Security in the United States and Canada 241\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eName of Social Security Pension Plan 241\u003c\/p\u003e \u003cp\u003ePurpose of Social Security 241\u003c\/p\u003e \u003cp\u003eEarnings Base for Pension Calculation 242\u003c\/p\u003e \u003cp\u003eHow Pension Is Calculated 243\u003c\/p\u003e \u003cp\u003eHow the Plans Are Funded 243\u003c\/p\u003e \u003cp\u003eNormal Retirement Age 244\u003c\/p\u003e \u003cp\u003eEarly Retirement Age 244\u003c\/p\u003e \u003cp\u003eDelayed Retirement 245\u003c\/p\u003e \u003cp\u003eIndexation 245\u003c\/p\u003e \u003cp\u003eOther Government-Sponsored Pension Plans 245\u003c\/p\u003e \u003cp\u003eTaxability 246\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix CRetirement Income Targets under Other Scenarios 249\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix D About the Assumptions Used in the Book 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThoughts on Conservatism 255\u003c\/p\u003e \u003cp\u003eAssumptions Used to Estimate Personal Consumption 256\u003c\/p\u003e \u003cp\u003eAssumptions Used to Calculate Future Retirement Savings 258\u003c\/p\u003e \u003cp\u003eAssumptions Used to Estimate the Historical Accumulation of Savings 260\u003c\/p\u003e \u003cp\u003eCouple Contemplating Long-Term Care Insurance 260\u003c\/p\u003e \u003cp\u003eAssets Needed to Cover Long-Term Care (LTC) 262\u003c\/p\u003e \u003cp\u003eAbout the Author 263\u003c\/p\u003e \u003cp\u003eIndex 265\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eFREDERICK VETTESE\u003c\/b\u003e is the Chief Actuary of Morneau Shepell, one of the largest human resources consulting and technology companies and one of the top five defined benefit pension plan providers in North America. Fred has spent his entire career providing retirement consulting and actuarial services in respect of workplace pension plans. Much of his professional time these days is spent in the public eye, speaking at professional conferences and writing on retirement issues for the national newspapers and other media. In his spare time, Fred struggles enthusiastically with both his golf game and his piano. He was born and raised in Toronto, Canada, where he continues to reside with his wife Michelle. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe Essential Retirement Guide\u003c\/i\u003e is Fred’s second book. In 2012, Bill Morneau and Fred co-authored \u003ci\u003eThe Real Retirement\u003c\/i\u003e, a book that explained why Canada was not suffering a retirement crisis. Fred can be reached at \u003cb\u003efvettese@morneaushepell.com.\u003c\/b\u003e   \u003c\/p\u003e\u003cp\u003eRetirement planning is difficult enough without having to contend with misinformation. Unfortunately, much of the advice that is dispensed is either unsubstantiated or betrays a strong vested interest. In \u003ci\u003eThe Essential Retirement Guide\u003c\/i\u003e, Frederick Vettese analyzes the most fundamental questions of retirement planning and offers some startling insights. The book finds that: \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eSaving 10 percent a year is not a bad rule of thumb if you could follow it, but there will be times when you cannot do so and it might not even be advisable to try\u003c\/li\u003e \u003cli\u003eMost people never spend more than 50 percent of their gross income on themselves before retirement; hence their retirement income target is usually much less than 70 percent\u003c\/li\u003e \u003cli\u003eInterest rates will almost certainly stay low for the next 20 years, which will affect how much you need to save\u003c\/li\u003e \u003cli\u003eEven in this low-interest environment, you can withdraw 5 percent or more of your retirement savings each year in retirement without running out of money \u003c\/li\u003e \u003cli\u003e Your spending in retirement will almost certainly decline at a certain age so you may not need to save quite as much as you think \u003c\/li\u003e \u003cli\u003eAs people reach the later stages of retirement, they become less capable of managing their finances, even though they grow more confident of their ability to do so! Plan for this before it is too late\u003c\/li\u003e \u003cli\u003eAnnuities have become very expensive, but they still make sense for a host of reasons\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003eIn addition, \u003ci\u003eThe Essential Retirement Guide \u003c\/i\u003eshows how you can estimate your own lifespan and helps you to understand the financial implications of long-term care. Most importantly, it reveals how you can calculate your personal wealth target—the amount of money you will need by the time you retire to live comfortably. The author uses his actuarial expertise to substantiate his findings but does so in a jargon-free way.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990221209829,"sku":"NP9781119111122","price":29.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119111122.jpg?v=1761786961","url":"https:\/\/k12savings.com\/products\/the-essential-retirement-guide-isbn-9781119111122","provider":"K12savings","version":"1.0","type":"link"}