Save Your Retirement: What to Do If You Haven't Saved Enough or If Your Investments Were Devastated by the Market Meltdown

225 Pages·2009·1.33 MB·English

by  Frank Armstrong

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From the Library of Melissa Wong
S Y
AVE OUR
R
ETIREMENT
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From the Library of Melissa Wong
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From the Library of Melissa Wong
S Y
AVE OUR
R
ETIREMENT
What to Do If You Haven’t
Saved Enough or If Your
Investments Were Devastated by
the Market Meltdown
ptg
Frank Armstrong, III and Paul B. Brown
From the Library of Melissa Wong
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©2009 by Frank Armstrong, III and Paul B. Brown
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Printed in the United States of America
First Printing May 2009
ISBN-10: 0-13-702900-4
ISBN-13: 978-0-13-702900-6
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Library of Congress Cataloging-in-Publication Data
Armstrong, Frank, III.
Save your retirement : what to do if you haven’t saved enough or if your investments
were devastated by the market meltdown / Frank Armstrong, III and Paul B. Brown.
p. cm.
ISBN-13: 978-0-13-702900-6
ISBN-10: 0-13-702900-4
1. Retirement income—United States—Planning. 2. Saving and investment—United
States. I. Brown, Paul B. II. Title.
HD7125.A76 2009
332.024’0140973—dc22
2009014792
From the Library of Melissa Wong
For Gabriele, my Crewmember for Life
—Frank Armstrong, III
As always, to Alison Bonnie Davis Brown.
I wouldn’t last five minutes in retirement—
or anywhere else—without you.
—Paul B. Brown
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From the Library of Melissa Wong
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From the Library of Melissa Wong
Contents
PART I: LET’S TAKE A DEEP BREATH AND
GET OUR BEARINGS . . . . . . . . . . . . . . . . . . .1
Chapter 1: There’s Hope . . . . . . . . . . . . . . . . . . . .3
Chapter 2: You Are Not Alone: Just About
Everyone Is Unprepared to Retire
the Way They Want . . . . . . . . . . . . . .11
Just How Bad Is It? . . . . . . . . . . . . . . . . . .14
Are You Clueless? . . . . . . . . . . . . . . . . . . .18
Perception Is Not Reality . . . . . . . . . . . . .19
What All This Means for You . . . . . . . . . .20
Chapter 3: Maybe You Don’t Want to Retire . . . .23
Highly Paid Second Acts . . . . . . . . . . . . . .25
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The Key Takeaway Point . . . . . . . . . . . . .28
Chapter 4: Before You Begin Your Rescue Efforts:
Things to Do to Make Sure You
Don’t Make the Situation Worse . . . . .29
An Investment That Seems Too Good
to Be True . . . . . . . . . . . . . . . . . . . . . . . .30
Why Credit Cards Are Dangerous
to Your Health . . . . . . . . . . . . . . . . . . . .31
Where Not to Start . . . . . . . . . . . . . . . . . .35
Value Your IRAs . . . . . . . . . . . . . . . . . . . .36
Insurance . . . . . . . . . . . . . . . . . . . . . . . . .39
Estate Planning . . . . . . . . . . . . . . . . . . . . .40
The Vital Importance of Your
Emergency Fund . . . . . . . . . . . . . . . . . . . .44
From the Library of Melissa Wong
viii Save Your Retirement
Balancing Retirement and
Other Savings . . . . . . . . . . . . . . . . . . . . .45
Other Do’s and Don’ts . . . . . . . . . . . . . . .46
The Don’ts . . . . . . . . . . . . . . . . . . . . .47
The Do’s . . . . . . . . . . . . . . . . . . . . . . .57
PART II: WORKING WITH THE SCENARIO THAT IS
RIGHT FOR YOU . . . . . . . . . . . . . . . . . . . . .63
Chapter 5: R(etirement) Minus 20 or More . . . . .71
The Safe Road to Take . . . . . . . . . . . . . . .74
(Important) Odds and Ends . . . . . . . . . . .76
Chapter 6: R–15 . . . . . . . . . . . . . . . . . . . . . . . . . .79
No Matter Where You Are, ptg
Here You Are . . . . . . . . . . . . . . . . . . . . .81
Are You on Track? . . . . . . . . . . . . . . . . . .82
Where All That Money Is Going to Go . .82
Who Wants to Be a Millionaire? . . . . . . .89
Catching Up . . . . . . . . . . . . . . . . . . . . . . .91
Advice for Everyone 15 Years Away
from Retirement . . . . . . . . . . . . . . . . . . .92
Chapter 7: R–10 . . . . . . . . . . . . . . . . . . . . . . . . . .95
Solving a Saving Conundrum . . . . . . . . .100
One Key Noninvestment Issue:
Long-Term Care . . . . . . . . . . . . . . . . . .104
Here’s to Your Health . . . . . . . . . . . . . . .106
A Final Thought About R–10 . . . . . . . . .106
From the Library of Melissa Wong
Contents ix
Chapter 8: R–5 . . . . . . . . . . . . . . . . . . . . . . . . . .107
A Crash Course in Savings . . . . . . . . . . .108
Downsizing . . . . . . . . . . . . . . . . . . . .110
A Change of Venue . . . . . . . . . . . . . .111
Not Quite Ready? . . . . . . . . . . . . . . . . . .113
You’re Okay . . . . . . . . . . . . . . . . . . . . . .114
A Final Thought About R–5 . . . . . . . . . .116
Chapter 9: R=0 . . . . . . . . . . . . . . . . . . . . . . . . . .117
Budgeting . . . . . . . . . . . . . . . . . . . . . . . .117
How Much Money Will You Need? . . . .118
Consolidate Your Retirement Accounts . .118
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Estate Planning . . . . . . . . . . . . . . . . . . . .119
Asset Allocation and
Investment Planning . . . . . . . . . . . . . . .120
Consider an Investment Advisor . . . . . . .120
Handling the Early Retirement
Maze . . . . . . . . . . . . . . . . . . . . . . . . . . .121
Health Insurance, Medicare,
and Long-Term Care Insurance . . . . . .122
Kick Back and Enjoy . . . . . . . . . . . . . . .122
Chapter 10: R+ . . . . . . . . . . . . . . . . . . . . . . . . . . .123
Other Thoughts . . . . . . . . . . . . . . . . . . . .125
From the Library of Melissa Wong