When you are young, getting old and retiring seems to you as alien as the theory of relativity. But being young is the right time when you actually have to sit down and start thinking about the future. There are many questions which young people ask themselves: how to plan my retirement, how much money to save, what kind of savings account to use?
Below, you can find some info on the best books dealing with retirement planning. Let’s dive in!
1. How Much Money Do I Need To Retire? – by Todd Tresidder
Todd Tresidder’s updated 2nd edition to this popular retirement planning book brings new perspectives to old, worn questions about how much you need to retire and the assumptions that go into retirement planning models.
Most retirement books have a lot of the same content teaching the same conventional model.
Tresidder’s book gives you three separate models (asset based, cash flow, and lifestyle) and unusual insights to form a complete solution.
- The dangerous assumptions behind the conventional retirement planning process, and why it doesn’t work the way most people think.
- The surprising limitations behind the Monte Carlo simulations used by most financial planners.
- How to reduce the amount you need to save by $600,000 (or more!)
- The difference between the national inflation rate and your personal inflation rate, and why it’s critically important to planning properly.
- Why you don’t have a long-term time horizon like most financial planner’s advocate. Instead, shorter time frames like the 7-15 years before your retirement date will determine the size of your nest egg, and the next 7-15 years after retirement determines your safe withdrawal rate.
- Three different models to better plan your retirement.
If you want new information and a deep understanding to properly prepare yourself for retirement, then this book will give you everything you need without hiring a financial advisor.
2. How to Retire with Enough Money – by Teresa Ghilarducci
Written by Teresa Ghilarducci, a retirement and savings advisor, How to Retire with Enough Money is an easy and interesting read that will teach you how much money you need to have before retirement. And for those who don’t enjoy reading as much as they like taking selfies, don’t worry – the book is “just” 116 pages long.
According to the book, a large number of Americans don’t save enough money which means that they will spend their years after retirement below the poverty level. That’s a fact! This book aims to change that by providing sound advice and a strict plan on how much to save for the future. There are no miracles or secrets. Everything is discipline and good planning.
Which are the main takeaways from the book?
- Theresa is not a fan of IRAs and 401k, claiming they trigger lower pensions for retired citizens.
- Keep at least 70% of pre-retirement income during retirement so that we have a normal life. How do we achieve that? Well, there are three main components – social security, working during retirement and saved money prior to retirement (at least 8 times your annual salary).
- Invest money in low-cost and low-risk funds to minimize the risk
- Curb your expenses and costs and don’t spend money on things you don’t need.
- Learn how to manage your money without the assistance of a planner. According to her, anyone can learn how to do it and should plan themselves for their future.
- Practical ideas how to achieve the above-mentioned.
3. You Can Retire Sooner Than You Think by Wes Moss
Wes Moss (a financial planner) offers something different for you in his book “You Can Retire Sooner” if you want financial independence. The book not only has retirement plans but also tells you the ways to do it earlier and how to stay contented when doing it.
The book reveals some secrets that can ensure a successful retirement earlier rather than later. Moss conducted a study on happy retirees and learned their financial practices that can help people retire sooner and happier.
Moss talks about five practices to ensure a solid and secure retirement including determining what the retirement money is for, creating a plan to clear off the mortgage in five years developing multiple sources for an income stream, figuring out the amount you have to save and becoming an income investor.
4. The New Rules of Retirement – by Robert C. Carlson
The book, written by Robert C. Carlson, offers an innovative approach to planning retirement, all the latest developments and newest strategies. The author, a retirement pro, has successfully combined profitable techniques with proven methods in order to show his readers how to retire without worrying about the future.
The book does provide its readers with lots of information about conventional retirement plans, such as the 401k, pension and social security. Sounds boring? Definitely, if it wasn’t Carlson’s book. What’s more, there are sections dealing with the quality of life once you retire from work and how to improve your life by changing location, spending habits, so on and so forth.
On the other hand, pensioners no longer live the sedentary life of the past. They travel and experience things they couldn’t prior to their retirement. You will find advice in the book on how to do that and even how to become a retired businessman. Why not?
Most important takeaways from the book:
- Learn how much money to save for retirement and how to manage it wisely
- Find out more info about the possible dangers to your financial stability, such as scams and financial abuse
- Learn how to invest money so that you can build up a nice portfolio, therefore additional passive income
- Learn how to make long-term healthcare plans
5. You Can Retire Early by Deacon Hayes
Did you know retiring early with proper planning can help you live your dream life? If no, then you must give a shot to Deacon’s guide to your financial independence. The book offers realistic strategies and tips anyone can use to make early retirement possible and save golden years to enjoy life.
By reading this book, you will discover that early retirement is not the option for rich people only.
In fact, anyone can retire at a young age he/she has ever dreamed of but only with proper strategy and planning. Deacon has provided some practical tips from his professional experience to take concrete steps to start a retirement plan at a young age. The book covers how to develop a modified retirement plan, assess and reduce debt, Select your investment vehicles, maximizing income, and make sure you’re sticking to your plan.
Thus, if you want to attain financial independence to enjoy a happy and active retirement, the book is a must-read.
6. The Smartest Retirement Book You’ll Ever Read – by Daniel R. Solin
In his book, Daniel Solin will unravel the secrets of successful retirement depending on the current state of the global economy.
Key takeaways from the book:
- Try to increase the money you have for retirement
- Steer clear of annuities
- Postpone your retirement as long as you can
- Don’t invest in reverse mortgages
- Avoid scams that will try to steal your money
- Pursue a long-term insurance plan, which might cover medical expenses after retirement.
- Opt for Index Funds which are managed passively since they go with lower taxes and costs.
According to Solin, if people do not invest their money they will most certainly lose it because of inflation. This is something that we all know but rarely give any thought to. Inflation will eat away at your savings. Therefore, he advises people to divide their money into two portions: one to keep somewhere safe, such as a deposit account or savings account and the other part to invest in various things that can increase your returns.
He also touches on topics, such as social security, pensions, care costs, scammers and many more. He points out that anyone should try to postpone taking social security as long as they can. The older you get without using it, the more money you can have later.
As a conclusion, I want to recommend this book to everyone who is confused and not completely sure what to do so that their retirement could be a successful period. This book is particularly suitable for people who earn lots of money.
7. Mom and Dad, We Need to Talk by Cameron Huddleston
As your parents’ age, it can be difficult to broach the subject of finances. This book offers the best ways to approach this challenging issue, with financial and legal information to help you to help your parents into their golden years.
Many parents feel reluctant to discuss money matters with their adult children, with topics such as retirement savings, long term care, and end of life planning being particularly difficult. However, these are essential conversations, and this book provides a variety of conversation strategies for more comfortable, productive discussions.
Mom and Dad, We Need to Talk will help you to gain insight from other’s stories and provide the motivation to broach the difficult subjects, guiding you through the process to lead to meaningful action.
8. Retire Before Mom and Dad: The Simple Numbers Behind A Lifetime of Financial Freedom – by Rob Berger
Retire Before Mom and Dad is the book you should read if you want to learn how to retire early, begin investing for retirement, get out of debt and manage several financial goals at the same time. Probably the most important lesson covered in this book is Life experiments.
Here, you will learn how your day-to-day habits impact your finances and how you can go about mastering these habits by asking “what if” queries and running three-week experiments. You will also learn the secret behind retiring early and having a healthy financial status.
Here are just a few of the topics covered:
- FIRE Math: You’ll master the simple math behind early retirement. You’ll also be able to determine how your daily, weekly, and monthly decisions affect your journey to financial independence.
- Simple Investing: The days of being intimidated by mutual funds or the stock market are over. This book provides everything you need to build a simple investment portfolio that you can actually understand.
- Retirement Accounts: From 401(k) and 403(b) accounts to a Roth IRA and HSA (Health Spending Account), you’ll learn how these accounts work. You’ll also get a simple plan you can follow to decide which accounts are best for you.
- Get Out of Debt: Debt doesn’t have to hold you back from your financial goals. The book walks through a simple way to pay off your debt in a sensible way while still saving, investing, and pursuing other financial goals.
- Life Experiments: Learn how your daily habits are affecting your finances and how you can master those habits by asking “what if” questions and running 21-day experiments.
The book is designed for anybody wanting to master their money but is tired of all the complicated jargon.
9. How to Make Your Money Last – by Jane Bryant Quinn
When we are young, we don’t think about getting old. Yet, when we reach a certain age we start to worry and ask ourselves the question: what am I going to do? Therefore, it’s wise to think about that before you turn 65.
According to Jane, the author of the book, there are several major questions we need to answer once we retire?
- What will my standard of living be?
- Do I need to keep working so that I can live decently?
- How can I make my money last?
Then she gives a brief overview of the different stages of retirement and dedicates different sections to people whose marital status is different – single, married, remarried, those who have lost a spouse and those who have divorced.
In detail, the writer discusses topics, such as social security, pension, retirement plans, savings, housing and health costs and expenses. Why does she do it? Because Jane wants to teach how to benefit the most from this money and use all those financial tools to increase your wealth and enjoy your senior years.
According to Jane, the safer the choices you make when it comes to investing, the higher the chances you will end up with not enough money for retirement. At the same time, people tend to live longer and longer, therefore spending one-third of their lives retired. That’s why she recommends “investing” in growth. While you still work, you have to make sure your money is invested in things that will produce growth and overcome inflation.
This is one of the best guides on the market and a must-read.
10. The New Retirementality – by Mitch Anthony
Some people, surprisingly, want to retire at a very young age. We have to respect their right to do so. But how can they achieve that? Is it actually possible? Buy The New Retirementality: Planning Your Life and Living your Dreams… At Any Age, You Want and find out yourself.
Unlike other books which focus on how to achieve certain financial goals, this book aims at teaching you how to improve your mindset.
Author Mitch Anthony is a revolutionary because he coined the phrase “new retirementality” focusing on the importance of working on your mindset before you achieve a certain goal. He opened up talks about the issues the retirement system has been facing since early 2000 and the problems younger people might have when their time for retirement comes.
The author had to face a long-lasting perception of retirement and try to present a novel idea. The old one assumed that people work till 62-65 and then retire. Then they live 20-30 year off their savings during their active period.
Lessons from the book:
- Retire on purpose, when you plan and want to, don’t wait for the age to come
- Rethink the meaning of retirement
- Recent data from research and studies that reflect the current retirement situation
I recommend this book because it is fresh, innovative and easy to read.