Retirement Planning for Dummies - Krantz, Matthew

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Résumé :

Proactively plan for a successful financial future after leaving the workforce

Are you ready for retirement? Retirement Planning For Dummies is your comprehensive guide to shoring up your finances as you prepare to leave the workforce. Learn to manage and optimize your 401(k), balance retirement savings with other financial needs, and set up pensions and insurance. Plus, get the latest updates on all things retirement, including the SECURE Act and new withdrawal rules. Written by an expert investment writer, this beginner-friendly guide is full of financial wisdom that will smooth the road as you embark on your retirement planning journey.

• Learn the best saving practices to make your money grow
• Maximize your retirement knowledge to set you up for success
• Balance retirement savings with other needs
• Get up to speed on withdrawal limits, HSA rules, and self-employment considerations

This book is for anyone looking for the best ways to save and plan for retirement, whether you just joined the workforce or are contemplating retirement in the near future....

Biographie:

Matt Krantz is an investment writer with decades of experience writing for publications including Investor's Business Daily, USA TODAY, and The Motley Fool. He's the author or co-author of four For Dummies books, including Investing Online For Dummies, Fundamental Analysis For Dummies, and Investment Banking For Dummies....

Sommaire:

Introduction 1

About This Book 2

Foolish Assumptions 2

Icons Used in This Book 2

Beyond the Book 3

Where to Go from Here 3

Part 1: Getting Started with Retirement Planning 5

Chapter 1: Retirement Planning Is Up to You 7

Blazing Your Own Retirement Plan 8

Measuring Your Lifespan 9

Social Security Administration's Life Expectancy Calculator 10

Bankrate's Life Expectancy Calculator 11

Living to 100 Life Expectancy Calculator 13

Retirement Planning Beginnings: The Pension 13

Changing Times: The 401(k) 14

Behold the power of the 401(k) 17

An opportunity to save 18

Social Security: The De Facto Safety Net 19

Chapter 2: Determining How Much You Spend 21

Finding Out Where Your Money Goes 22

Eyeing your expenses 22

Tracking your money's every move 23

Spending guidelines 24

Measuring Your Spending 25

Using your credit card company or bank's online resources 25

Diving into the world of third-party apps and online tools 27

Checking out other money-tracking options 30

Doing something with all this data 32

Putting Your Spending in Context 32

Using government statistics as a guide 32

Seeing how spending changes as you age 34

Improving Your Numbers 36

Figuring out if your latte is ruining your retirement 37

Finding easy ways to stop wasting money 38

Boosting your income with a side gig 39

Table of Contents iii

Chapter 3: Calculating How Much You Need to Retire 43

Getting to Know the 4 Percent Rule 44

How the 4 percent rule works 45

The magical power of the 4 percent rule 47

Shortcomings of the 4 percent rule 47

Using Online Retirement Calculators 51

Getting started 51

Exploring retirement calculators from mutual fund companies 54

Drilling in with detailed retirement calculators 56

Avoid gambling with retirement: Monte Carlo analysis 58

Understanding Why Starting Early Is Important 59

Compounding: The most powerful force in the universe 59

Inspiration to start retirement planning now 60

The race to $1 million: Doable if you start soon 61

Chapter 4: Choosing the Right Account 63

Retirement Planning in a Nutshell 63

Getting started 64

What about pensions and Social Security? 65

Things Change with SECURE Act 67

A Great Place to Start: 401(k)s 67

Advantages of 401(k) plans 67

Drawbacks of 401(k) plans 69

The Roth: An interesting twist on retirement savings 70

IRAs: A Cornerstone of Retirement Planning 71

Advantages of IRA plans 71

Drawbacks of IRA plans 73

A few IRA odds and ends 75

Self-Employed Plans 75

The spectacular SEP-IRA 76

The 401(k) for one: A one-participant 401(k) 77

Keeping it SIMPLE 77

What's the Catch? 78

Tax-deferred isn't tax-free 78

Beware the 10 percent early withdrawal penalty 79

Don't mortgage your future: Retirement plan loans 79

Chapter 5: Gauging Your Appetite for Risk 81

Getting a Handle on Your Risk Tolerance 82

Determining your investor type 82

Understanding risk tolerance 84

Looking at risk tolerance differently 85

Using risk-assessment tools 86

The ABCs of Asset Classes 88

Putting stocks in a box 89

Adding bonds 91

Including a few other asset classes 92

Seeing how risk tolerance and returns work together 93

Chapter 6: Opening Your Accounts 95

Getting Your 401(k) Up and Running 96

Understa...