The Buckets of Money Retirement Solution: The Ultimate Guide to Income for Life

243 Pages·2010·2.92 MB·English

by  Raymond J. Lucia

[CONTINUED FROM FRONT FLAP ] $24.95 USA | $29.95 CAN
Raymond J. Lucia, CFP
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To win at the retirement game, you need to know your After the fi nancial meltdown hit the markets in
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fi nancial goals, divvy up your money accordingly, and I 2007 and 2008, almost no investment—stocks,
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then invest intelligently. With this book as your guide, with Dale Fetherling bonds, commodities, or real estate—was left
you’ll learn how to achieve both income and growth, unscathed. Today, in the wake of the crisis, many
“Ray Lucia has always been great on radio and TV. When you read The Buckets of Money® Retire-
while reducing risk. workers, especially those nearing retirement, have
ment Solution, you’ll know why he is one of the nation’s top retirement experts.”
lost confi dence in their ability to fund a fi nancially
— Sean Hannity, radio/TV host and New York Times bestselling author of Conservative Victory
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“If Albert Einstein were alive, he might have invented something as good as or better than
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RRAAYYMMOONNDD JJ.. LLUUCCIA is one of —Ben Stein, economist u Ultimate Guide to Income for Life, nationally renowned
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bbiilllliioonn uussiinngg hhiiss renowned • Regain your balance in this ever-changing
no matter if the economy and market are soaring or plunging. This book gives you the road map you e
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need to bucketize your money and to be able to ignore all the harmful noise that makes it diffi cult i
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mmaaggaazziinnee nnaammeedd LLuucia one of — Jordan E. Goodman, “America’s Money Answers Man” and author of Everyone’s Money Book m • Choose the proper investments and execute
tthhee ““1100 BBeesstt BBrrookkeerrss in America.” e The Buckets of Money® plan for income, safety,
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LLuucciiaa iiss tthhee hhoosstt ooff tthhe nation- “If the past few years have tripped up your retirement plans, The Buckets of Money ® Retirement t and growth

aallllyy ssyynnddiiccaatteedd RRaayy LLucia Show Solution provides a time-tested, commonsense approach to help you regain your balance and get S • Create a workable withdrawal strategy once your
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aanndd iiss aa ffrreeqquueenntt gguueest on Fox —Brent Burns, President, Asset Dedication
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Income for Life
delicate line to achieve the best of both approaches. He backs everything up with statistics and
bbuussiinneessss eeddiittoorr oonn TTVV sstations in his retirement assets fall, even as their debt rose. So
facts. But he writes in such a conversational, breezy manner that you get the concept without
hometown of San Diego. it’s not surprising that a survey by Bank of America
really having to work at it. Wall Street hopes you will not read this book.”
T found that more than half of its respondents planned
— Stephen J. Huxley, PhD, Professor of Finance and Quantitative Analytics, he
DALE FETHERLING has written or coauthored In U to change their investment strategy. Change is
more than fi fteen nonfi ction books, and has University of San Francisco comltim good. But it begs the question: Change it to what?
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radio/TVb heostsste alnlindg N aeuwt hYoorrk Times FOREWORD BY BEN STEIN more than $2 billion.
[ CONTINUED ON BACK FLAP ]
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The
Buckets of Money®
Retirement
Solution
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“Over the years I’ve sat across the desk from literally thousands
of couples, business owners, retirees, and pre-retirees who have
entrusted their financial well-being to me and my company. I
take that responsibility very seriously, and that’s why I wrote this
book. The Buckets of Money Retirement Solution provides
academically proven strategies that work in good times and in bad.
It is a formula for a successful retirement, built on many years of
hands-on experience with real people, real money, and real issues.
Talking to people about their investments on the radio and TV, or
writing about the subject in magazines may make for interesting
listening, viewing, or reading, but there is so much more at stake
when a family’s financial future rests in your hands. For almost
40 years, I’ve been entrusted to help people find the right solution.
I hope this book will help you make the first step on the path to
a secure retirement with The Buckets of Money Retirement
Solution.”
—Raymond J. Lucia CFP®
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The
Buckets Money
of
®
Retirement
Solution
THE ULTIMATE GUIDE TO
INCOME FOR LIFE
Raymond J. Lucia, CFP®
with
Dale Fetherling
John Wiley & Sons, Inc.
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Copyright © 2010 by Raymond J. Lucia. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
Buckets of Money®, Bucketeer®, and Bucketize® are registered trademarks of
Raymond J. Lucia Companies, Inc.
CFP® and Certified Financial Planner™ are registered trademarks of the Certified Financial
Planner Board of Standards Inc.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted
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to the accuracy or completeness of the contents of this book and specifically disclaim any
implied warranties of merchantability or fitness for a particular purpose. No warranty may
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Library of Congress Cataloging-in-Publication Data
Lucia, Raymond J.
The buckets of money retirement solution : the ultimate guide to income for life /
Raymond J. Lucia.
p. cm.
Includes index.
ISBN 978-0-470-58157-5 (cloth); 978-0-470-90669-9 (ebk); 978-0-470-90670-5 (ebk);
978-0-470-90671-2 (ebk)
1. Retirement income. 2. Finance, Personal. I. Title.
HG179.L825 2010
332.024'014—dc22
2010026713
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To my loving wife,
Jeanne Lucia,
who has endured with consummate grace
both me and my years of seeking
the best retirement solutions for thousands of people
wanting to retire in comfort and safety.
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Contents
Foreword by Ben Stein xi
Acknowledgments xv
Introduction xvii
Part I Regain Your Balance
Chapter 1 Adapt to the Changing Landscape 3
The End of Easy 3
The Lessons 9
A Final Word 10
Chapter 2 Prepare for Whatever the Future Holds 11
Rebuild Your Savings 12
Rethink Your Retirement Years 17
Retool Your Retirement Savings Plans 23
Reinvent Your Strategy 26
A Final Word 28
Part II Forge a New Plan
Chapter 3 Grasp the Buckets of Money Concept 33
Put Time on Your Side 34
Other Risks 35
Wall Street’s Answer 38
Flawed Analyses 40
Main Street’s Myopia 41
“Reverse Dollar-Cost Averaging” 42
vii
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viii Contents
Proper Allocation 44
Proper Location 45
A Final Word 47
Chapter 4 Choose the Proper Investments 49
Bucket 1: The Income Bucket 49
Bucket 2: The Relative Safety Bucket,
Mid-term Investments 58
Bucket 3: The Growth Bucket, Long-Term Investments 68
A Final Word 76
Chapter 5 Execute the Buckets of
Money Strategy 77
First, Check Goals 77
Art and Science 78
Filling the Buckets 79
Bucket 1 80
Bucket 3A 81
Planning for Inflation 82
Bucket 3B 83
The Bottom Line 85
The Fate of the Heirs 85
Another Scenario 86
How Much Risk? 87
How to Allocate 88
The Importance of Bucketizing Now 89
A Final Word 90
Part III Refine the Plan
Chapter 6 Take Another Look at Annuities 93
What’s an Annuity? 93
Predicting the Future 102
Good Evidence 102
What Academia Says 103
Recovery Strategy 104
Risks and Opportunities 105
A Final Word 106
Chapter 7 See What REITs Can Do for You 109
What Exactly Is a REIT? 110
Combining the Best Features 110
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