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Saving for Retirement without Living Like a Pauper or Winning the Lottery
Award-winning personal finance columnist read by millions of people each week The Incredibly Simple, Step-by-Step Guide to Investing Money for Your Future! “A cover-to-cover must-read for everyone 16 to 60 who wants to live the American Dream. The earlier we choosetosave ® , the sooner we can stop saving, and the later we start saving the more we need to know in order to catch up. What you need to know; where you can find the answers; how you can take action. It is all here.” –Dallas Salisbury, CEO, Employee Benefit Research Institute and American Savings Education Council (www.choosetosave.org) “Bookstores are full of tomes advising people how to save for retirement, yet millions of people are still hopelessly confused about what they should do. Gail MarksJarvis breaks it down into simple steps that anyone can do to ensure a more comfortable retirement. Read this book and prosper!” –Liz Pulliam Weston, MSN Money Personal finance columnist and best-selling author of Your Credit Score “This book offers a sensible, sophisticated approach for tackling the daunting challenge of saving for retirement. The good news? You can retire–without living on canned food or buying lottery tickets–if you follow Gail’s realistic strategies for saving, investing, and ultimately spending money in retirement.” –Susan Tompor, Detroit Free Press “You can wallpaper a warehouse with all of the awful investment advice offered up every year in newspapers, magazines, and books. One of the most difficult tasks is to separate the get-rich-quick hype from the truly worthwhile knowledge that will make you wealthy over time. I’m thrilled to say that Gail MarksJarvis has cut through the claptrap of investment cacophony and provided not only a solid plan for retirement saving, but a realistic, common-sense approach to personal finance in general. This is a triumph.” –John F. Wasik, Bloomberg News personal finance columnist and author, The Merchant of Power Drawn from responses to questions from over 20,000 readers of the author’s personal finance columns. Over the years, Chicago Tribune financial columnist Gail MarksJarvis has taken the time to listen and respond to thousands of her readers about the issues, questions, and concerns that are most important to them. Saving and investing for retirement has never been more important...and with this book, it’s never been clearer what you need to do and how to do it. Don’t wait another day! Discover…
274 pages, Kindle Edition
First published February 27, 2007
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October 20, 2007I learned:
1. Mutual fund kinds: Bond funds are safe, stable, low-return investments. Money market or cash funds give slightly better interest rates than a savings account. Stock funds buy stocks on the stock market and have a variety of subcategories with different results.
2. The basic safe mixture is 60% stocks, 40% bonds. If you're younger, you can risk more. You should check it every year to make sure your money is still in that ratio.
3. IRA kinds: Traditional and Roth. With traditional, you deduct your contributions from your taxes. This reduces your tax bill now. The money accumulates untaxed interest over decades. When you retire, you pay taxes on whatever you take out. With Roth, you don't deduct contributions from your taxes. It accumulates untaxed interest. Once you retire, you don't pay any taxes on the money you take out. You've already paid them, decades before.
4. To open an IRA, you can go to a bank, a mutual fund company, a financial planner, or a broker. You'll open an account and then have to decide which mutual funds to buy. Anyplace may charge you a start-up fee and maintenance. According to this author, "there is no need to pay such fees, because equally good institutions don't charge them." Maybe the best way to avoid fees is to know what you want and buy direct from low-fee/no-load mutual funds.
5. If you have an IRA/401k through your job, you'll be given a list of mutual fund choices. To avoid hassle, you can pick a "target date" fund that corresponds roughly to the year you'll retire. If you don't have this option, you can pick a "balanced" fund. If you don't have this option, you'll have to figure out what ratio of stocks to bonds you want.
6. Main kinds of bond funds: Long-term, intermediate, and short-term. Intermediate is best for retirement because they're diversified.
7. Main kinds of stock funds: Large, mid-, and small cap growth OR value funds; international; and balanced. The sizes refer to the capitalization of the company. Large companies are more stable, small ones more vulnerable. Middles are in the middle. Growth vs. value means the fund's investment strategy: Risky/higher gains vs. more stable. International means companies not based in the US. Balanced means they invest (usually) in 60% stocks and 40% bonds, so you could just choose this. There's also a kind called "index" that she says are great for simplicity. Index funds buy all the stocks - the S&P 500 buys stocks of the 500 biggest companies in the market. A "total stock market index" buys about 75% big companies, 25% small ones.
8. If you do 40/60 mix of bonds to stocks, you can have 1 bond fund (an intermediate/diversified one), and 1 or more stock funds. If you do 1, they say to buy a large cap fund, preferably a "core" or "blend" one, mixing growth and value. If you do 2 stock funds, the author recommends 45% in large and 15% in a small cap. If you do 3, it's 30 in large, 10 in small, and 20 in a "diversified" international fund. The author stresses that this depends on your feelings. If you don't like risky small cap funds, you can invest less in them. She says if you want an index fund, you should get a total stock market one and an international fund.
9. Compare mutual funds' costs. Brokers might charge you fees called "loads" for their advice. You can buy "no-load" funds direct from the company. There are also other fees, reflected in "expense ratios": the percentage of your money that the company takes. 1.41% is average, but it can be as low as .18% or as high as 2.5%. Over time they can lose you tens of thousands of dollars. I think I've heard that so-called socially responsible investment funds charge somewhat higher fees because of the extra research for their screens. But this book doesn't talk about SRI at all - she even mentions Exxon, General Electric a bunch of times.
1. Mutual fund kinds: Bond funds are safe, stable, low-return investments. Money market or cash funds give slightly better interest rates than a savings account. Stock funds buy stocks on the stock market and have a variety of subcategories with different results.
2. The basic safe mixture is 60% stocks, 40% bonds. If you're younger, you can risk more. You should check it every year to make sure your money is still in that ratio.
3. IRA kinds: Traditional and Roth. With traditional, you deduct your contributions from your taxes. This reduces your tax bill now. The money accumulates untaxed interest over decades. When you retire, you pay taxes on whatever you take out. With Roth, you don't deduct contributions from your taxes. It accumulates untaxed interest. Once you retire, you don't pay any taxes on the money you take out. You've already paid them, decades before.
4. To open an IRA, you can go to a bank, a mutual fund company, a financial planner, or a broker. You'll open an account and then have to decide which mutual funds to buy. Anyplace may charge you a start-up fee and maintenance. According to this author, "there is no need to pay such fees, because equally good institutions don't charge them." Maybe the best way to avoid fees is to know what you want and buy direct from low-fee/no-load mutual funds.
5. If you have an IRA/401k through your job, you'll be given a list of mutual fund choices. To avoid hassle, you can pick a "target date" fund that corresponds roughly to the year you'll retire. If you don't have this option, you can pick a "balanced" fund. If you don't have this option, you'll have to figure out what ratio of stocks to bonds you want.
6. Main kinds of bond funds: Long-term, intermediate, and short-term. Intermediate is best for retirement because they're diversified.
7. Main kinds of stock funds: Large, mid-, and small cap growth OR value funds; international; and balanced. The sizes refer to the capitalization of the company. Large companies are more stable, small ones more vulnerable. Middles are in the middle. Growth vs. value means the fund's investment strategy: Risky/higher gains vs. more stable. International means companies not based in the US. Balanced means they invest (usually) in 60% stocks and 40% bonds, so you could just choose this. There's also a kind called "index" that she says are great for simplicity. Index funds buy all the stocks - the S&P 500 buys stocks of the 500 biggest companies in the market. A "total stock market index" buys about 75% big companies, 25% small ones.
8. If you do 40/60 mix of bonds to stocks, you can have 1 bond fund (an intermediate/diversified one), and 1 or more stock funds. If you do 1, they say to buy a large cap fund, preferably a "core" or "blend" one, mixing growth and value. If you do 2 stock funds, the author recommends 45% in large and 15% in a small cap. If you do 3, it's 30 in large, 10 in small, and 20 in a "diversified" international fund. The author stresses that this depends on your feelings. If you don't like risky small cap funds, you can invest less in them. She says if you want an index fund, you should get a total stock market one and an international fund.
9. Compare mutual funds' costs. Brokers might charge you fees called "loads" for their advice. You can buy "no-load" funds direct from the company. There are also other fees, reflected in "expense ratios": the percentage of your money that the company takes. 1.41% is average, but it can be as low as .18% or as high as 2.5%. Over time they can lose you tens of thousands of dollars. I think I've heard that so-called socially responsible investment funds charge somewhat higher fees because of the extra research for their screens. But this book doesn't talk about SRI at all - she even mentions Exxon, General Electric a bunch of times.
February 10, 2014
I've read several investment books, and I think this is the best introductory text on saving for retirement. Most books will jump right into the nuts & bolts of investing: asset allocation, diversification, why index funds are superior to actively managed funds.
This book pauses to first explain 1) why do you need to save for retirement?, and 2) exactly how much do I need to save?
Once those questions are answered, you can then use that goal to guide how you should invest.
If you're just getting started on this topic, read this book first. Then once you know the basics, read a book by John Bogle such as The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns to understand more on why actively managed mutual funds are (probably) not for you, and why a finance industry profession (probably) doesn't have your interests at heart.
This book pauses to first explain 1) why do you need to save for retirement?, and 2) exactly how much do I need to save?
Once those questions are answered, you can then use that goal to guide how you should invest.
If you're just getting started on this topic, read this book first. Then once you know the basics, read a book by John Bogle such as The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns to understand more on why actively managed mutual funds are (probably) not for you, and why a finance industry profession (probably) doesn't have your interests at heart.
August 17, 2018
This is the most in-depth book on investing in the stock market for long term wealth that I've read thus far. I've read a few others, but if you only read this one, you will be good to go. I already had started investing in mutual funds before I read this, but feel extremely capable to improve and enter other types of stock investments after reading this. She really breaks everything down into simple terms and I think the novice investor could really understand this book and can become educated enough to immediately start properly investing. She gives real numbers and even actual fund suggestions. I think some of the numbers are slightly skewed when it comes to the expense ratios given, but that's to be expected over time because of inflation. This is pretty solid advice and I would recommend to everyone who wants to build wealth at any level.
May 28, 2015
Too much technical language for someone who is wanting to learn about financial things and investments. Tons of statistics and examples that were hard to follow. Author was extremely negative about financial advisers and that they are all out to steal the most amount of money from you. She's also very anti-Hartford funds and pro Vanguard, which makes me wonder is she more personally invested with those funds (so needing to sell them). Comes down to the fact that there are a lot of great financial advisers out there who do have their customer's best interest at heart. Yes, there will be fees associated with that. They have to make a living just like everyone else. They can't do their job for free. Plus they have series 7 certification and ability to trade and sell securities that the average person cannot have (not being sponsored by a company with licensing). So while you do want to control your own finances and future, there also comes a point where you do your research and sit down with a financial consultant. Otherwise you are left to putting cash under the mattress, which will get you nowhere.
November 16, 2013
I've read a number of personal finance books and found this to be the best one for retirement investing. The author starts out by explaining why and when you should start investing for retirement and then goes into the how-to. I think she does a terrific job of de-mystifying the subject for the average reader and providing enough information to allow someone to pick investments from their 401k offerings or for an individual IRA. She explains how to diversify your investments and touches on topics like Roth IRAs, Index Funds, and Target Date Funds. You will walk away from this book with a plan for your retirement investing and feeling much more confident about putting your plan into action.
Most of the good advice I've heard over the years about retirement investing is contained in this book. It is perfect for someone who is just starting to save for retirement (and a good read for those of us who have been investing for a while but need a quick review of the important concepts!).
Most of the good advice I've heard over the years about retirement investing is contained in this book. It is perfect for someone who is just starting to save for retirement (and a good read for those of us who have been investing for a while but need a quick review of the important concepts!).
May 3, 2016
The subtitle of this book ought to be 'let me tell you about compound interest, AGAIN'. While the information was pretty solid, I really felt that the book wasn't cohesive as a book. EVERY chapter covered compound interest or a derivative of it (how much you miss out on because of fees - again). Yes I get it. The book seemed unnecessarily long and truthfully I had a hard time pushing through it. The book really felt partly like it should be read from cover to cover, subsequent chapters continued building on previous, however there was enough repetition that they also felt like maybe they should be taken on their own. Next time, pick one and stick to it. Solid information, just a questionable delivery.
March 25, 2014
I was impressed with the author's knowledge of her subject. When you stop to think about how to have enough money to retire, it is scary. Social security hardly provides anything, and most people don't have any sort of guaranteed pension plan. Like the book says, you HAVE to start planning early, and you have to invest your money in vehicles that will grow over time. One reviewer really slammed the book because the author suggests investing in stocks. And also slammed the book because it seemed to be only for affluent people. I did not find that to be the case.
August 5, 2019
This book is great for anyone who doesn't know much about saving for retirement. It was very readable and very straightforward. It gave a great overview of the basics as well as a quick look at more in depth stuff plus fairly exact recommendations of what you should do with your money to have enough to live on during retirement no matter what age you are now. Very informative! Don't procrastinate, start now!
January 10, 2012
Good book that would be excellent for somebody just learning/exploring retirement planning. First half of the book is more valuable I think, as the second half gets into lower level details that really is a bit overkill, especially given the advice to target index funds or target-date funds.
Overall, relatively easy read (given the subject) with good, relatable examples. Recommend for anybody new to retirement planning.
Overall, relatively easy read (given the subject) with good, relatable examples. Recommend for anybody new to retirement planning.
April 6, 2010
A great book for when you are starting your retirement planning. It's not a light read, but still it's easy to understand and I feel prepared to start planning my retirement. This book discusses how loads and fees affect investments and how to pick good mutual funds and bonds. I would definitely recommend it to anyone planning on retiring.
October 26, 2011
Pretty redundant writing. There's gotta be faster ways to learn this stuff. However, I felt addicted to educating myself on the subject and only felt letdown when I realized in the last chapter that we already had a Target 2040 fund, which is the shortcut to investing anyways. Basically, start putting away 10% tax free NOW.
October 18, 2011
I say that this book is amazing because of all the books I have read on finances, retirement, and investing this one finally has explained the stock market and investing in a way that I can understand. It gives step by step directions on how to check out funds and how to figure out how much to invest and where to invest it.
January 16, 2012
This book is fine for someone with no clue about investing. It basically explains the importance of starting early, and illlustrates again and again that with compounding interest, you can earn a lot of money over time by investing a little bit each week.
If you are familiar at all with mutual funds, the stock market, 401k's, etc. Then you will probably be bored with this book.
If you are familiar at all with mutual funds, the stock market, 401k's, etc. Then you will probably be bored with this book.
February 15, 2012
The first half was a little boring because it was information that I already knew but the second half she explains the ins and outs of investing and explains it in a way that is very simple and easy to understand. I would highly recommend this book for anyone who is wanting to learn more about investing. It covers the basics which is all the average person really needs.
July 30, 2012
Okay, I'm finshed... Or as finished as I will be.
It's boring- but let's just say I knew that it would be going in. You can learn a lot if you care to, or want to, but stocks, bonds, IRAs and 401Ks? I'm provided that intermediate information from Wells Fargo from my employer in strangely enough easier terms. Or atleast less information.
It's boring- but let's just say I knew that it would be going in. You can learn a lot if you care to, or want to, but stocks, bonds, IRAs and 401Ks? I'm provided that intermediate information from Wells Fargo from my employer in strangely enough easier terms. Or atleast less information.
August 16, 2012
This is an excellent read for anyone who's been putting off saving for retirement because they didn't know how. The information I learned in this book finally allowed me to start saving a little money in my company's 401k plan, and i know i will turn to this book in the future as i try to continue growing my retirement savings so i don't have to rely comoletely on Social Security.
March 2, 2016
I found this book to be exceedingly readable and understandable, and it really helped me to make sense of some of the options I had, plus the knowledge I gained helped me to develop my own strategy for moving forward.
I won't tell you it made me rich, because it didn't. But it did help me to feel more in control!
I won't tell you it made me rich, because it didn't. But it did help me to feel more in control!
February 13, 2012
Excellent book for the person who knows nothing about investing. The author breaks it down in simple terms and explains investing realistically, I.e. the market has cycles so there will be times you lose money. After reading this I'm confident my investments are in funds they should be.
June 14, 2013
helpful information written in a way for a non finance person to understand. it still took me plenty of time to digest the information but it was much more effective in teaching me how.to handle our finances better than a finance class I took during undergrad.
September 9, 2013
A good, thorough book that explains WHAT to do and WHY to do it. You need to patient and get all the way through it. An excellent book if you want to understand the why, but maybe a bit much if you just want the "what to do".
July 21, 2014
Very informative
Gail Jarvis really does marvelous job off clearing all of the. confusion surrounding 401ks, stock, bonds and mutual fund. must read if you're brand new to investing.
Gail Jarvis really does marvelous job off clearing all of the. confusion surrounding 401ks, stock, bonds and mutual fund. must read if you're brand new to investing.
December 19, 2016
I read this several years ago. It is clearly written and easily absorbed. It was invaluable to our understanding of financial investment and security. I've given this book to several people over the years.
October 4, 2007
Save as much as you can as early as you can!!
Great review of the mutual funds, IRAs, etc.
Great review of the mutual funds, IRAs, etc.
July 24, 2008
Great primer for retirement investing. I highly recommend it!
September 1, 2016
Short and sweet book on retirement investing!
June 19, 2010
This book helped me understand some investment options that had just been foggy before. I recommend it if you want to be able to wrap your head around saving for retirement a little more.
June 29, 2012
This was an incredibly helpful book that helped me set up my retirement saving and other financial stuff. I highly recommend it. I recommend it for beginners.
Want to read
August 28, 2012[free nook book]
June 28, 2013
It had some very good information but it is repetitive. I wished I had read it in my 20's. I would have gotten more out of it and been further ahead financially.
February 7, 2013
Good read if you know nothing about investing for your retirement.
Displaying 1 - 30 of 38 reviews