The New Retirement Savings Time Bomb: How to Take Financial Control, Avoid Unnecessary Taxes, and Combat the Latest Threats to Your Retirement Savings

by Ed Slott

The premier guide for retirement and investment planning by "America's IRA Expert" (Mutual Funds magazine)-fully updated to reflect the recent tax rule changes

With the possible e xception of home property, the most valuable asset for most Americans is their retirement fund. Yet most people don't know that the IRS is waiting to grab up to 90 percent of their hard-earned retirement savings. Now, in this fully updated edition of The Retirement Savings Time Bomb, renowned tax advisor Ed Slott explains in clear-cut layman's terms what people need to know to keep their money and pass it on to their families.

Genres: Nonfiction, Finance, Personal Finance, Money, Self Help, Audiobook

Unknown Binding

Published March 1, 2021

Reviews

[David · Rating 4 out of 5]

High rating for what I believe is strong content about tax rules. The book covers material through the SECURE Act and the CARES Act.

I won't lower the rating for it's less-than-stellar readability because it's a reference book but I'll talk about it here. The writing is an odd mix of engaging, tiresome, cliched, informative, overhyped and bloated. As a reference book the layout should have been much leaner for ease of absorption and maneuverability. The author is a decent storyteller but he fancies himself to be a world class raconteur and he uses 1,000 words when 50 would suffice. I had a sneaking suspicion the book was organized as it was to force people to buy it because it's too dense and meandering to quickly grasp the important points (i.e. you can't spend 20 minutes with it at the bookstore and walk away with the vital information). And I think an author writing about finances/tax savings has to have a hot take to stand out from the rest of the pack to sell books and be paid to speak to large groups. This book might be a massive money saver but I was underwhelmed. There's a bit of advice about buying cash value life insurance after age 59 1/2 that was unconvincing to me. And there were a few areas completely unrelated to my circumstances so I mostly skimmed and skipped large sections.

So what's good about it? There's a lot of information about tax particulars that was impressive and helpful. So the advice portions were overhyped (I think) but the rules and regs information seemed to be very solid.

Ed Slott isn't the only person to know lots about the tax code so I would recommend looking for another book and speaking with a tax expert (or retirement planner or both) long before you plan to retire.

[Karen Ng · Rating 4 out of 5]

4 stars for information, which include tax information up to the SECURE and CARES acts, but 2 stars for readability. I don’t like the writing style at all. It’s pretty confusing.
For retirement planning with a focus on finance. I recommend the following books.
1) How to Make You Money Last by Jane Quinn and
2) The Ultimate Retirement Guide for 50+ by Suze Orman

[Ann · Rating 3 out of 5]

Shouty advice on how to pay less tax on retirement funds. Could have done without the endless ranting about how paying taxes is equivalent to the government picking your pocket. Good advice about tax and estate planning I guess but way overlong and the tone was insufferable.

[Anna · Rating 4 out of 5]

This is surprisingly interesting and amusing reading even though very little of the information here was particularly pertinent to my own financial situation.

[Elwin Kline · Rating 5 out of 5]

Amazing Retirement/Financial Awareness professional development read.

100% a 5 out of 5 star rating, considering the scope of the topic and delivery of this type of material in such a gripping and entertaining way.

You'll learn a ton about:

- Taxes
- The IRS
- Traditional Retirement Plans (401k, IRA's, 403b, etc.)
- Non-Traditional Retirement Plans (Real estate being the most emphasized/covered)
- Critical Decision points now, that will impact your heirs when you die
- So more much

My favorite takeaway from this book is the acronym YOYO, which the author states is the current state of existence we live in, when it comes to finances and retirement.

YOYO = "You're On Your Own"

You've basically got 3 paths:

1. Sit on top of your mountain of gold coins and save/dump everything into retirement your whole life. Then when you're 72 and have 16 millions dollars in the bank and never enjoyed/spent any of it... you'll die and hopefully your kids/grandkids/tax man doesn't piss it all away.

2. You live pay check to pay check, work until you die, and put all your eggs into one basket aka Traditional Retirement Plans that Congress can aggressive attack through taxes and between now and until your 65... whip up some new taxes laws pretty much whenever they feel like it to take your hard earned money that you've banking on.

3. You exercise initiative, educate yourself, make the best decisions you can through research and understanding, you either go hybrid of Traditional + Non-Traditional, or flip over entirely to Non-Traditional and live the YOYO life... which guess what, you are YOYO'ing either way you go. Might as well take ownership and accept it full send if you are going to pick option 3.

There's an obvious answer to which choice is the right one above.

This book has not only generated a to-do list for me and lots of great notes that I will keep my archives for later review, but it has also confirmed/solidified that I am on the right track and making the right moves.

Ignorance is not an excuse when you are old and grey, and the topics/lessons learned within this book come too little and late.

[Donna · Rating 4 out of 5]

Very informative and helpful. Gave ideas not considered and a solid gameplay for the retirement years and for beneficiaries- took lots of notes

[Michael · Rating 4 out of 5]

"I'm putting all my money into taxes the only thing sure to go up." Henry Youngman-comedian

When Ed Slott the "The Ira Guru speaks I listen. Americans have invested millions upon millions of dollars in retirement plans. 401k, Roth 401k, 403b, 457b....IRA'S whatever. Now, your retirement savings plan is at even greater risk with new tax law, (THE SECURE ACT) that was developed by Congress and made into law. For years Congress encouraged us to save for our retirement years. Most of our retirement savings are tax deferred and Congress watched as trillions of dollars went into these savings. Now they have the perfect remedy for revenue shortfalls, your 401 k. It's hard to believe that you can spend your entire working life providing for your family and saving money to support yourself in retirement only to lose most of your retirement assets to the IRS when you die. Ed Slott's recent book provides strategies and ideas on ways to maximize your IRA and other retirement assets so that more of it stays in your family and out of the hands of the government. Ed spells out in laymen terms a plan for helping millions who have been responsible savers. This book should be read by all who have money in a 401k and how to take measures to protect it.

[Ron Welch · Rating 3 out of 5]

This is not a book that's necessarily a "good read." The book has a lot of fluff, including aspersions about the IRS, Congress and how the government wants to take away your hard earned savings for retirement.

However, the book provided me with 2-3 absolutely essentially pieces of advice that I have incorporated into my financial and estate planning. Lower your expectations for an entertaining book, and read it for the pearls of wisdom it may provide to you.

[Becky · Rating 4 out of 5]

The IRA information is excellent and was very useful. I had to re-read some of it since it can be quite complex. I did not, however, agree with Mr. Slott's suggestions to buy whole life policies to give my heirs a huge tax-free inheritance. Oy.

[James Greger · Rating 4 out of 5]

Good information but Ed might be a little too concerned about paying taxes.

[King Henry · Rating 5 out of 5]

A Course on IRA-Must Read

As a fiduciary I wanted to make sure that I was armed with the information needed to make sure my clients had access to someone who could answer any questions they may have on their IRA. Ed Slott did a great job, and this should be on your required reading list if you're a financial professional giving any advice or counsel to others on these matters. Very detailed... Probably gonna need to read it again, or wait for the next one! Great Job Ed!

[Deborah Ballard · Rating 5 out of 5]

Protect your IRA and 401k from the taxes man.

This book was loaded with excellent advice and ideas as well as advice to prevent loss of savings to excess taxes and penalties. I would recommend this book to anyone with a 401k or an IRA.

There was also excellent advice for any beneficiaries of a retirement account that were also pure gold. Ways to reduce the tax burden on inherited IRAs and 401Ks.

[David Parkes · Rating 4 out of 5]

Excellent overview of (primarily) IRA-related options for safeguarding retirement investments. Maybe a little too much about the 'problems' of those with $10m at risk but I suppose they deserve some tlc also!

Full of practical suggestions and I acted on one of them immediately I had read the book, and you can't get more useful than that.

[David · Rating 2 out of 5]

It’s a misleading title. This “Time Bomb” is really for your heirs and not really about you. I was hoping to get some strategies about minimizing taxes in retirement but 90% of this book is about the loss of the stretch IRA for your heirs. Don’t waste your time.

[KB · Rating 5 out of 5]

A very informative book. I walked away with so many action items that I immediately implemented for my traditional IRA and also my ROTH. The book also helped me have a better discussion with my financial investor.

[Gerald Parent · Rating 5 out of 5]

A tremendous amount of great information for anyone with a qualified plan or advisors who work with clients with qualified plans. Have to read again!

[jack · Rating 4 out of 5]

well presented info on IRA / 401k inheritence issues in light of recent law changes. touches other subjects, but mostly single focus.

[Jon Nielson · Rating 1 out of 5]

It gets so deep into the weeds that it becomes a chore to read. Many of his examples don't work for the average investor.

[Casey Corless · Rating 4 out of 5]

Good detailed explanations or various angles of retirement. Covered many topics and ideas I have not seen covered in other retirement books.

[Megan · Rating 5 out of 5]

Great book with a lot of information. Recommend for anyone with questions about retirement.

[Travis · Rating 4 out of 5]

I read this book on the recommendation of Michael Canet and Art McPherson's Death And Taxes. While that book was not that great, The New Retirement Savings Time Bomb: How to Take Financial Control, Avoid Unnecessary Taxes, and Combat the Latest Threats to Your Retirement Savings is really good.

Ed Slott is a good financial writer. He isn't as irreverent as Ramit Sethi but few writers are. Slott explains all the concepts surrounding retirement savings plans so that pretty much anyone should be able to understand them. His jokes don't always land but at least he's smart enough to keep the material from feeling dry. His writing style often feels like he's talking to you in a conversational tone, which also helps ease you into the details.

The book is nicely divided into five steps across eight chapters, plus three introductory chapters and a somewhat superfluous final chapter. The meat of the book is in those five steps: Time It Smartly, SECURE It, Roth It, Insure It, Avoid the Death-tax Trap. Over the course of those eight chapters, Slott hits topics like Required Minimum Distributions (RMDs), the difference between after-tax and pre-tax money, what is a Eligible Designated Beneficiary (EDB), estate planning, and why life insurance is better than your IRA. It's a lot of ground to cover but it never feels overwhelming and no item feels under-served.

I was familiar with many of the concepts but it was still enjoyable to read them explained so easily. And while most material is focused on helping you build your retirement savings so you can enjoy your retirement (or even early retirement if you're into FIRE), this book was unique in its stance on protecting your money for your beneficiaries. That shift in focus to building generational wealth is especially noteworthy in today's climate of wealth inequality and fixing generations of discrimination.

My only real complaint is that I have wait many years to implement some of the strategies Slott outlines. Since you have to be 59.5 years old to withdraw from a retirement account without penalty, things like converting retirement savings to an insurance policy have to wait. But the book did kickstart me to finally start a Roth IRA in addition to my traditional IRA and traditional 401(k). I also finally got around to applying the Rule of 72 to my current savings and was astounded at the number I'll have at 59.5 (something else Ramit Sethi has to do with each of his podcast guests to convince them how much money they really have).

Overall a very satisfying, informative, and enjoyable financial book focused on building and protecting your retirement savings.

[Fetcher · Rating 3 out of 5]

I thought this was a retirement planning book, I didn’t realize this was an estate planning book.

Difficult read. Unless you are a financial advisor, this probably is not the book for you. Super detailed, super specific. Geared towards people who have already retired with large ira accounts and how to pass those accounts to heirs.

Good book, very detailed information, but the topic is a little different than I was hoping for. As I am not yet 50, I am more worried about funding my retirement, not passing assets down to heirs. I understand the importance of considering estate taxes, but first need to focus on having enough for my own retirement.

That said there was some good info in the book, including the advice below.

1- investing in things you don’t understand (complex financial products)
2- financial advise from the wrong people (use a fiduciary)
3- placing too much importance on money
4- too much student loan debt (for you or your children)
5- buying a house, when you should rent
6- taking in too much risk
7- identity theft
8- spending too much on early retirement
9- don’t saddle your kids with your money issues
10- no plan to care for aging parents
11- wrong insurance or not enough
12- no will
13- timing the market

Don’t name trust as beneficiary of trust. Avoid QTip trust (common in second marriages)

[John Fredrickson · Rating 4 out of 5]

This book is a very good guide to the dos and donts of managing your 401K, IRA, or Roth IRA. This can be a horrifyingly complex endeavor, and has been complicated even further by the elimination of the Stretch IRA for many/most people. Slott spends a lot of time on the mechanics of what you should, what you can, and also what you should never, do with an IRA. He spends a fair amount of time as well on the traps you can fall into, such as incorrectly titling an IRA, splitting the beneficiaries across 'people' beneficiaries and trusts, penalties that can be assessed, and more, including the downfalls of leaving an IRA to a trust.

The book does get a bit repetitive, as Slott hammers away at particular points over the course of the text.

Slott also consider strategic use of Life Insurance as part of one's estate plan, but this felt like fairly light treatment. What would have made the book even more valuable to me if he had expanded coverage of things like life insurance, ILITs, and accelerated Roth conversions as part of the discussion. These things are touched on, but not at the level that I would have wanted.

[Kemp · Rating 3 out of 5]

A recent book covering changes to the tax laws impacting IRAs and estate planning. The book address how both the SECURE Act and CARES Act can impact inherited IRAs and bequeaths to your family. Ed Slott laments the loss of the Stretch IRA concept in 2019 and identifies a possible alternative that passes your estate tax free to your heirs.

Ed Slott knows his stuff but the writing is repetitive at times – really repetitive. I lost count how many times he wrote you can no longer stretch an inherited IRA if you’re not the spouse. But it’s a fast read that addresses the nuances of the IRS tax code listing things to avoid and providing numerous examples.

I still advise reading IRS instructions as you contemplate or implement beneficiary changes, rollovers, trusts, and other tax deferral/avoidance strategies. Especially since the tax laws change periodically.

Hard to rate a book on taxes higher than three stars. If you’ve got IRAs or 401ks its material you should understand especially as you get closer to retirement or estate planning.

[Ken · Rating 4 out of 5]

A pretty comprehensive overview of IRAs/401(k)s and the many tax implications and strategies for rolling over, withdrawing, converting, and passing on to heirs. The section on definitions presented in "this vs. that" format (e.g. "Direct Transfer vs. Rollover") is clear and concise and would be helpful to anyone not already familiar with them. The chapter on using life insurance as a strategy to "protect" inherited wealth from the IRS is a little misleading. The IRS still gets its cut, it's just that the IRA owner sets up (and pays for) life insurance to pay out to the IRA beneficiary as a way to offset the beneficiary's tax burden. A strategy that may or may not make sense, depending on whether one is trying to maximize the beneficiary's windfall.

[James Clay · Rating 5 out of 5]

Ed Slott simplifies retirement and IRAs. Easy to understand and tons of good info to plan for retirement!

[Isabelle · Rating 4 out of 5]

As a total beginner when it comes to this stuff, I really appreciate this book. The majority of it was easily understood. I have a couple of decisions to make with my own investments and the explanations in this book make me feel a lot more confident about everything I have coming up right now. Whether you need to know more about traditional IRAs or Roth IRAs, this book is great to form a basis of knowledge to build up on later.

[Greg Kozak · Rating 5 out of 5]

Really good resource for all the tactical financial aspects of retiring, especially if you're considering retiring early. Talks through things in a compelling way and works through complicated topics, like Roth IRA conversions, in such a way that you understand them in all their complexity and can take action as a result.

[Ginnymayer · Rating 5 out of 5]

Renowned tax advisor Ed Slott explains in clear-cut layman's terms what people need to know to keep their money and pass it on to their families. It is a very confusing subject because it is based on tax law but he does a good job with a difficult subject.

[Matthew · Rating 4 out of 5]

If you're looking for tax optimization strategies for your estate planning, then it's a good reference book. Essentially the whole book is RMDs, elimination of stretch IRA for your heirs, and ROTH conversions.