Plan your prosperity: The only retirement guide you'll ever need, starting now—whether you're 22, 52 or 82

141 Pages·2012·2.12 MB·English

by  Kenneth L. Fisher

Contents
Acknowledgments
Chapter 1: What? Me? Retire?
The Imagined Dichotomy
Two Goals . . . and Some Non-Goals
Definitions and a Pencil
Start Immediately. Now. Right Away.
Plan Your Prosperity
Chapter 2: My Goals Are . . . What?
Why Is This So Hard?
Your Investing Goals, Simply
Potential Pitfall: Capital Preservation and Growth
Inflation’s Insidious Impact
Three Percent, Compounded
Chapter 3: The Secret Code—Asset Allocation or
Benchmark?
Benchmark—A Road Map and Measuring Stick
Picking a Benchmark
The Big Decision—Asset Allocation
Potential Pitfall: Age Doesn’t Equal Asset Allocation
Benchmark Versus Asset Allocation—What’s the Difference?
Chapter 4: Time Horizon—Longer Than You Think
Potential Pitfall: Ignoring Opportunity Cost
Time Horizon—What Is It?
Time Horizon and Benchmark
Chapter 5: What’s in a Return?
Growth Defined
The Past as a Guide?
Gordon Moore and Endless Innovation
Potential Pitfall: Unrealistic Expectations
Chapter 6: Getting That Cash Flow
Potential Pitfall—The All High-Dividend Portfolio
How Much Do You Need?
Monte Carlo—Not Just a Casino
Let’s Get Bootstrapping
Chapter 7: Can I Get There?
How Much Do You Have?
A Savings Plan
Chapter 8: Putting It All Together
To Benchmark or Not to Benchmark
State Your Goals
Know Where You Are
Picking an Appropriate Benchmark
Finding Professional Help
Avoid Being a Fraud Victim
And You’re Off!
Appendix A: All Hail the Mighty Dow
Appendix B: Cash Flow Versus Expenses
Appendix C: Expense Categories
Appendix D: Personal Balance Sheet
About the Authors
Index
Fisher Investments Press Fisher Investments
Press brings the research, analysis and market
intelligence of Fisher Investments’ research
team, headed by CEO and New York Times best-
selling author Ken Fisher, to all investors. The
Press covers a range of investing and market-
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Books by Ken Fisher
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Roads to Riches The Only Three Questions That Still Count
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The Wall Street Waltz
Super Stocks
Fisher Investments Series
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Fisher Investments on Consumer Discretionary Fisher Investments on Consumer
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Cover image: Thomas Perez
Cover design: Thomas Perez Copyright © 2013 by Fisher Investments. All rights
reserved.
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Library of Congress Cataloging-in-Publication Data: Fisher, Kenneth L.
Plan your prosperity : the only retirement guide you’ll ever need, starting now,
whether you’re 22, 52 or 82 / Ken Fisher with Lara Hoffmans.
p. cm. — (Fisher investments press) Includes bibliographical references and
index.
ISBN 978-1-118-43106-1 (cloth); ISBN 978-1-118-51608-9 (ebk); ISBN 978-1-
118-51609-6 (ebk); ISBN 978-1-118-51610-2 (ebk) 1. Retirement—Planning 2.
Finance, Personal. I. Hoffmans, Lara. II. Title.
HG179.F5338 2013
332.024’014—dc23 2012031678
Acknowledgments
This book, my ninth, is a bit of a departure for me. Normally, I write on the
capital markets aspect of investing—what to buy and when and why and how to
avoid tactical investing errors. This is the first book I’ve written that focuses
almost solely on the decisions that must be made before you get to that point—
and very critical decisions they are. And because so much later investing success
depends on getting those big, early decisions right, and with so many people still
looking backwards at the big bear market in 2008 instead of forward at the rest
of their (potentially, very long) investing time horizon, I felt now was the time to
write a book on the planning side of investing.
Books are a hobby for me, not a vocation. And as the years pass, I find more
of my leisure time getting appropriated by family (a wonderful thing). So my
supporting cast is of utmost importance—these books could not happen without
them. First, I must thank and acknowledge Lara Hoffmans, who now dedicates
most of her time to writing for me and my firm. This is our sixth book together,
and we’ve got it down like clockwork. She drafts the book from my
specifications and guidelines, and she marshals the research, while I get the fun
part of conceptualizing, styling and editing.
Backing up Lara while she’s focusing exclusively on the books is a very
talented crew of writers on my firm’s Content team, including Todd Bliman,
Elisabeth Dellinger, Naj Srinivas and Amanda Williams. Lara simply couldn’t
focus on the book without their stepping into her big shoes when needed.
Amanda Williams did double duty, assisting in copy editing, but also editing the
book for content. And of course, behind every talented writer is a tolerant
spouse, so I must thank Lara’s husband, Aaron.
Once again, Jessica Wolfe and Danielle Lynch provided all the data and
graphics, overseen by Matt Schrader, who heads our research analytics team.
Doing data for one of my books is never easy, particularly since we are so
exacting. Jessica and Danielle handled it all with grace.
Dave Eckerly, Fab Ornani and Molly Lienesch are my crack team who assist
me in PR, web marketing and branding. Thomas Perez did the cover—the
concept was his, as was the design—which I think looks pretty darn cool. And
Sal Timperio did an early read-through and provided excellent feedback.