"How to Make Your Money Last" -- A Gem

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Taylor Larimore
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"How to Make Your Money Last" -- A Gem

Post by Taylor Larimore »

Bogleheads:

I have just finished reading Jane Bryant Quinn's new book for retirees and for those about to retire. Ms. Quinn goes into nitty-gritty detail about Social Security, life insurance, health insurance, annuities, reverse mortgages, safe retirement rates and taxes on investments to help us make the choices that will provide the highest lifetime income in our retirement. These are comprehensive subjects (the S.S Handbook has 2,728 separate rules and the IRS Tax Code has 2,652 pages) so my quotes only touch on the edges of what's inside Jane's book. At my age (92) I look back and only wish I had read it earlier.

You'll need to own investments that grow. When you do this, we can share in that growth without breaking a sweat by buying and holding just two or three well-diversified stock-owning mutual funds.

I developed a new respect for immediate-pay annuities that convert a lump sum of savings into an income for life.

Freedom of mind and action is having an income that we're sure will last for life.

Even if retirement seems far away, steps you take now--to save and invest--can greatly improve your standard of living when your paycheck eventually stops.

Put something useful or interesting into your schedule every day. -- Something you have to do (or want to do)that gets you up in the morning.

You're never afraid to open your bank statement when you're living within your means.

Good rules exist for the young and middle-aged: live on less than you earn, increase the amount of money you save every year, stay out of debt, use tax-favored retirement account and invest for the long term.

Few pleasures are greater than feeling financially safe.

A house is a money pit, even if there's no mortgage. By slashing those costs and moving to a condo or rental apartment, you'll probably be able to keep up your spending on all the smaller things that give spice to life.

People on Medicare spend, on average, about $2,000 a year for routine doctor and dental visits and commonplace prescription drugs.

Debt is a killer for retirees. Cleaning up an 18% credit card give you an 18% return on your money, guaranteed. By contrast, savings accounts are paying zip.

Only about half of older people now enter retirement with a paid-up home.

With as little as 2.5% inflation, you will need 28% more income, 10 years from now, to buy the same things you are buying now. Where will that extra income come from?

Fortunately, God is making more fee-only Certified Financial Planners (CFPs).

An adviser who works for a brokerage firm or insurance company is never a fee-only planner.

If your financial adviser won't say, in writing, that he or she is a fiduciary, find someone else.

I love Social Security. It's America's finest retirement plan. Nothing else gives you the same combination of income for life, inflation protection, tax benefits, government-backed payment guarantees, and built-in spouse protection, with no annual investment fee and no market risk.

If I can give you just one word of advice about when to sign up for Social Security, it would be WAIT.

If a married couple reaches 65, the chance that one of you will live until 90 is better than 40%..

Peace of mind is knowing that you can see a doctor when you're sick.

Check your medical bills. Odds are there's a mistake and -- I promise--it won't be in your favor.

Just a few unlucky days without health insurance could cost you your life savings. To find an individual policy, start with HealthCare.gov and click on "See Plans & Prices."

To be sure you don't miss out on any (Medicare) reimbursements, start the sign-up process three months before your 65th birthday.

I know of only three companies that have never raised long-term care policies on existing customers.

Most private pension plans and some government plans offer you two ways to take retirement. You can take monthly payments for life or lump sum (Ms. Quinn gives 11 reasons for taking monthly payments for life and 11 reasons for taking a lump sum).

A financial adviser or insurance agent might present you with what sounds like a fabulous idea -- "pension maximization." As you've probably guessed, there's a worm in this apple.

Lifetime annuities, the Rodney Dangerfield of investments, don't get no respect--except from me.

Immediate-pay fixed annuities are easy to shop for. Just go to ImmediateAnnuities.com and enter the sum you want to commit. -- Vanguard customers can get a quote online immediately. If you're not an existing customer, call 800-357-4720.

Your window for buying fixed and inflation-adjusted annuities is age 70 to 80, most experts say.

Annuities can be cash cows for financial advisers who choose to put their own interest ahead of yours. Do not fall for the variable annuity with lifetime withdrawal benefits.

A fixed-index annuity has nothing to do with simple immediate-pay annuities.

Stay out of expensive investments that tout "no loss, all gain." It's a snakepit.

When retirees are asked if there's anything they'd have done differently in their lives financially, the number one answer is "save more money."

The nation's greatest gift to savers: The tax-favored retirement plan.

To make it easier to keep track, consolidate your retirement accounts. Your 401k, 401b, and 457 can all be rolled into a single IRA.

If you put $5,000 into a Roth today and suddenly find that you need the money, you can take it right out again, no muss, no fuss.

There's nothing like automatic payroll deductions to build up a retirement account.

If you're lucky, you company menu will include "index funds."

You might also be offered managed funds invested in particular sectors of the stock market. But you don't need to buy these sectors separately. Your index funds own them all.

By all means, consider target-date mutual funds if your plan offers them. It's one-stop shopping.

If your plan offers stock in your company, avoid buying anything more than a small amount of it.

The government Thrift Savings Plan is the simplest, finest, and lowest cost retirement plan on the planet.

In general, 403b and 457 annuities are lousy deals. They're larded with fees that chop your investment returns.

Almost without exception, the university-based economists, professors, and financial researchers are invested entirely in index funds.

An IRA plan at a brokerage firm lets you buy almost any of the firm's products--not only individual stocks, but also various structured notes, annuities, partnerships and other exotics on offer; usually at high cost. Awful stuff. Personally, I wouldn't touch 'em.

Vanguard reports that women, well aware of their longevity, save a larger percentage of their pay than men at the same income level.

Those who want to be mostly in stock should be able to live without touching that money during bear market cycles.

You can create a regular retirement income using the 4 or 4.5% rule with as few as two mutual funds--a U.S. Total Market Fund and a Total Bond Fund.

I prefer the rule of 110. It says that the percentage you hold in stocks should equal 110 minus your age. At 50, you'd be 60% in stocks with the rest in bonds.

If you're selling some shares at a gain, see if there are others that you can sell at a loss.

Nothing endangers your lifestyle more than to pile into "income investments."

Any interest-rate investment claiming to pay a fabulous annual return has a catch in it somewhere.

The future is unknowable. Trying to follow "timing" advice is a loser's game.

For simplicity, your money should be consolidated at a single financial institution.

Choose a bond allocation that minimizes risk. You do this by dividing your money between high-quality short-term and intermediate-term bond mutual funds.

After bear markets, the broad stock market has always recovered. Individual stocks might not, which is why it is so risky to be a stock picker: But the price of a broad-based mutual fund will go back up.

When you look in the mirror; you'll probably have to concede --unless you're a deeply experienced investment analyst--that you know very little about any of the the individual stocks you own.

If you aren't sure that you have enough money to cover your bills for life, consider switching part of your saving that you're holding in bond funds into an immediate-pay annuity.

Financial advisors who earn commissions sneer at index funds and have a patented method for talking you out of them. "Why would you want average returns?" they ask with a superior smirk.

A common piece of advice is to buy a total market fund, then add a couple of other funds that you imagine will beat the market. That's called "tilting" your portfolio. I don't tilt, myself. I'm not smart enough to know which particular industry will do the best.

My inclination is always to make things easier. I'd vote for holding one or two broadly diversified stock funds rather than a large collection. You might add an international stock fund. That's three funds.

Rick Ferri and Alex Benke tested a three-index-fund portfolio against 5,000 simulations of similar and randomly chosen managed portfolios. -- The index-fund portfolio outperformed the stock picker's portfolios more than 80% of the time.

Morningstar's research identifies cost as the only--repeat, only--dependable predictor of mutual fund's future performance.

Everything in a retirement portfolio has a specific job to do. For stocks, it's growth. For bonds, it's ballast. Even when quality bond markets fall, they never lose anywhere close to as much as you can lose in stocks.

International bond funds provide you with currency diversification against the dollar: But they cost more to own and complicate your investment plan. The simpler your bond bucket, the easier it is to rebalance.-- Stick with high quality.

Wealth managers create million-dollar bond ladders for clients with a super-high net worth at a minimal mark-up. For the rest of us, ladders waste our time and interfere with sensible withdrawal plans. Use mutual funds instead.

Target-date mutual funds are a terrific invention for people building wealth.

You can manage a retirement account yourself if you keep it really simple--say, just two or three low-cost index funds. The more funds you have, the more complicated your withdrawal math.

Vanguard Personal Advisor Services provides money management, portfolio rebalancing and ongoing personal finance advice to its customer for just 0.3% a year on portfolios of $50,000 or more.

You will not earn the net income you expect if you pay high sales commissions to a financial adviser, including the commissions hidden in high-cost variable annuities. The more famous the firm and the fancier the offices, the more they will extract from you in fees. They have no conscience. Trust me on this.

Willie Sutton robbed banks because that's where the money was. For the same reason, greedy financial salespeople go after the retirement accounts of people in midlife and later. You're on their list if you're rolling over a 401k into new investments, choosing a lump sum pension payout instead of a monthly lifetime income, or looking for higher returns on your savings than you're getting from banks and bonds.

Your house is not only a piggy bank, it's a tax shelter; too. If you're married and sell it, you can take up to $500,000 in profits tax free.

A rising trend among boomers is the two-step retirement--first, downsizing to a smaller place, then, later; moving to a full-service retirement community.

New federal regulations make reverse mortgages safer for people in their late 70s and 80s who need extra money to help them stay in their homes. Go to the website mtgprofessor.com for the best package of information and guidance I have found.

Warning! If you have a variable-rate mortgage, prepayments don't automatically shorten the term of the loan. Any prepayments on a fixed-rate loan automatically shortens its term.

Of all the overblown and misleading sales pitches in the insurance world, those for indexed universal life might be the worst.

If you no longer need life insurance, there's no point paying for it.

Whether to keep a policy, ditch it, or restructure it is a huge decision. Trying to make a good decision about existing and complicated cash-value policies can drive you nuts. I strongly recommend that you get specific advice from a fee-only insurance adviser. For the names of fee-only advisers, go to GlennDaily.com and click on "links."

Simplify your financial life. -- I've seen widows shocked by the mess their husbands left behind.

Update your will (you have one, of course). This isn't a book about estate planning, I'm just checking to make sure you have a will, a living will that explains the extent of medical treatment you'd want if you can't decide for yourself, a health-care agent to be sure that your wishes are carried out, and a durable power of attorney. The power gives someone the right to manage your money if (dread thought) your mind turns dim.

What gives us freedom of mind and action is having an income that we're sure will last for life. This book was written to help you build it. After that, adventure calls.
Thank you, Jane.

MORE INVESTMENT GEMS

Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
GoldenFinch
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Re: "How to Make Your Money Last" -- A Gem

Post by GoldenFinch »

Thank you for taking the time to write all of these quotes!
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Re: "How to Make Your Money Last" -- A Gem

Post by joe8d »

JBQ. Always good advice.
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Re: "How to Make Your Money Last" -- A Gem

Post by S&L1940 »

yikes, Taylor you should think about a consultant or finders fee or something
yes, a gem
passing this on to my kids
hope to see you and the next So FL get-together, be well, Rich
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Re: "How to Make Your Money Last" -- A Gem

Post by njoyingdajourney »

Morningstar's research identifies cost as the only--repeat, only--dependable predictor of mutual fund's future performance.

I liked this one.
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Re: "How to Make Your Money Last" -- A Gem

Post by Fallible »

Thanks for the "gems," Taylor. I also read the book and you've culled its essence.

Also, for those who've posted on the forum feeling anxious about pending retirement, Quinn takes that up nicely and ends the book by writing, "There's a vibrancy to life after work, at its slower pace. We let go of who we were and discover who we've become."
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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Re: "How to Make Your Money Last" -- A Gem

Post by Will do good »

Read the book, got it from the library. Love it.
Thinking of actually buying a copy. :shock:
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Re: "How to Make Your Money Last" -- A Gem

Post by abuss368 »

Thank you for that excellent summary Taylor!
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Re: "How to Make Your Money Last" -- A Gem

Post by casun »

thank you.
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Re: "How to Make Your Money Last" -- A Gem

Post by LadyGeek »

The book is now in the wiki: Taylor Larimore's Investment Gems
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Re: "How to Make Your Money Last" -- A Gem

Post by snowshoes »

Thank you Taylor, particularly for the list of its points you found noteworthy.
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Re: "How to Make Your Money Last" -- A Gem

Post by lostdog »

Thank you Taylor. Excellent summary. I will check to see if the book is at our local library.
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Re: "How to Make Your Money Last" -- A Gem

Post by Morse Code »

Taylor Larimore wrote:Bogleheads:I love Social Security. It's America's finest retirement plan. Nothing else gives you the same combination of income for life, inflation protection, tax benefits, government-backed payment guarantees, and built-in spouse protection, with no annual investment fee and no market risk.

A common piece of advice is to buy a total market fund, then add a couple of other funds that you imagine will beat the market. That's called "tilting" your portfolio. I don't tilt, myself. I'm not smart enough to know which particular industry will do the best.
Lots of good stuff here, Taylor, but I did find these two to "nit pick":

SS America's finest retirement plan? I've seen multiple studies that show it to be one of the worst. I know I would gladly give up my right to all future benefits if I could just have my contributions back.

And the quote about "tilting" shows a surprising ignorance about it. Tilting away from the market portfolio has nothing to do with knowing which particular industry will do best.
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Re: "How to Make Your Money Last" -- A Gem

Post by BarbaricYawp »

I'd nitpick this one: "A house is a money pit, even if there's no mortgage. By slashing those costs and moving to a condo or rental apartment, you'll probably be able to keep up your spending on all the smaller things that give spice to life."

Some of us enjoy gardening, animals and moderate house related improvement projects. Condos and rental apartments don't generally offer those amenities. In my budget I treat the plants and animals as a 'hobby' expense. It' gives me a lot of pleasure and frankly, most of my 'vacations' are actually 'staycations' since I enjoy spending time with my projects/critters. I expect to stay in this house until I am too old to reasonably manage it, then downsize to a 'tiny house' with a half acre or so somewhere. A condo or apartment with no access to a garden and no ability to keep pets (I favor large dogs -- no offense to all the Chihuahua owners out there, but I'd be afraid I'd step on one) would be the living death for a person like me.

It's all a matter of perception. And budget. 8-)
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Re: "How to Make Your Money Last" -- A Gem

Post by patriciamgr2 »

Thanks so much for posting. I appreciate your continued guidance on important financial topics!
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Post by Julieta »

Got digital copy from library. Took 5 minutes to search and download. It is excellent reading. Thanks Taylor. After reading it in digital I ordered hard copy off Amazon. Excellent recommendation!
Last edited by Julieta on Sat Jun 18, 2016 10:13 am, edited 1 time in total.
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Re: "How to Make Your Money Last" -- A Gem

Post by jimbok_mb »

Taylor, many thanks for taking the time to do this. Jane Bryant Quinn has been a favorite of mine over the years and never steered me wrong. I may consider buying this book for my millennial son.
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Re: "How to Make Your Money Last" -- A Gem

Post by tomd37 »

Thanks for bringing this book to the attention of our readers here. I bought the book shortly after it came out early this year and liked it so much that I sent a copy to my daughter. She too liked it very much. I think the book is good reading for everyone, not just retirees and those near retirement. Good planning pays off!
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Post by david99 »

BarbaricYawp wrote:I'd nitpick this one: "A house is a money pit, even if there's no mortgage. By slashing those costs and moving to a condo or rental apartment, you'll probably be able to keep up your spending on all the smaller things that give spice to life."

Some of us enjoy gardening, animals and moderate house related improvement projects. Condos and rental apartments don't generally offer those amenities. In my budget I treat the plants and animals as a 'hobby' expense. It' gives me a lot of pleasure and frankly, most of my 'vacations' are actually 'staycations' since I enjoy spending time with my projects/critters. I expect to stay in this house until I am too old to reasonably manage it, then downsize to a 'tiny house' with a half acre or so somewhere. A condo or apartment with no access to a garden and no ability to keep pets (I favor large dogs -- no offense to all the Chihuahua owners out there, but I'd be afraid I'd step on one) would be the living death for a person like me.

It's all a matter of perception. And budget. 8-)
I agree ---I think that a condo is more expensive than owning a house --- especially if you do the snow removal and lawn maintenance on your own.
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Re: "How to Make Your Money Last" -- A Gem

Post by arizonaslim »

I'm of two minds on the notion of a house being a money pit. Indulge me for a moment while I share a story from the Arizona Slim file:

My mother is in her early 90s and living by herself in a big house in Pennsylvania. I thought that she and my dad should have moved into assisted living years ago, but Mom was firmly against that idea. Dad is now in a nursing home.

Money pit? Oh, brother is it ever. So far this year, we've had to deal with replacement of the heating oil tank and the chimney liner. And we aren't even halfway through 2016 yet.

On the other hand, Mom likes living in the Big Ole House. She has caregivers for part of the day, and believe me, if that wasn't enough help, her doctor and the caregiving agency would let me know in a New York minute.

So, if my mama wants to stay in the Big Ole House, well, I'm the dutiful daughter. I'm going to do whatever I can to keep her there. Gotta keep Mom happy!
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Post by Julieta »

lostdog wrote:Thank you Taylor. Excellent summary. I will check to see if the book is at our local library.
Consider purchasing it. This is a keeper.
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Post by iceport »

Taylor Larimore wrote:Bogleheads:

I have just finished reading Jane Bryant Quinn's new book for retirees and for those about to retire. Ms. Quinn goes into nitty-gritty detail about Social Security, life insurance, health insurance, annuities, reverse mortgages, safe retirement rates and taxes on investments to help us make the choices that will provide the highest lifetime income in our retirement. These are comprehensive subjects (the S.S Handbook has 2,728 separate rules and the IRS Tax Code has 2,652 pages) so my quotes only touch on the edges of what's inside Jane's book. At my age (92) I look back and only wish I had read it earlier.

Taylor
Thank you, Taylor. Based largely on your endorsement, I have just ordered this book.
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Post by Herekittykitty »

Taylor, thank you for the book recommendation and the great synopsis!
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Post by rec7 »

Just got finished looking at it good book. Taylor another book you might like is The Index Card: Why Personal Finance Doesn’t Have to Be Complicated
https://www.amazon.com/Index-Card-Perso ... 1591847680
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Re: "How to Make Your Money Last" -- A Gem

Post by heyyou »

Quinn takes that up nicely and ends the book by writing, "There's a vibrancy to life after work, at its slower pace. We let go of who we were and discover who we've become."
Very much so.
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Post by chx »

As with most advice tomes of this sort, it comes across as trite and overly full of generalizations.
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Post by 2015 »

iceport wrote:
Taylor Larimore wrote:Bogleheads:

I have just finished reading Jane Bryant Quinn's new book for retirees and for those about to retire. Ms. Quinn goes into nitty-gritty detail about Social Security, life insurance, health insurance, annuities, reverse mortgages, safe retirement rates and taxes on investments to help us make the choices that will provide the highest lifetime income in our retirement. These are comprehensive subjects (the S.S Handbook has 2,728 separate rules and the IRS Tax Code has 2,652 pages) so my quotes only touch on the edges of what's inside Jane's book. At my age (92) I look back and only wish I had read it earlier.

Taylor
Thank you, Taylor. Based largely on your endorsement, I have just ordered this book.
+1
Just put the book on hold at the library.
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Re: "How to Make Your Money Last" -- A Gem

Post by RadAudit »

chx wrote:it comes across as trite and overly full of generalizations
It's trite because it is true and needs to be repeated to every new about-to-be retiree because apparently, a lot of them haven't gotten the message yet.
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Re: "How to Make Your Money Last" -- A Gem

Post by NMJack »

Taylor Larimore wrote:

Willie Sutton robbed banks because that's where the money was. For the same reason, greedy financial salespeople go after the retirement accounts of people in midlife and later. You're on their list if you're rolling over a 401k into new investments, choosing a lump sum pension payout instead of a monthly lifetime income, or looking for higher returns on your savings than you're getting from banks and bonds.
Taylor
This one is my favorite. :moneybag
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Post by SGM »

I bought the book as a reference when it first came out. There is a good chapter on SS and annuities. Thanks for posting Taylor.
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Post by Julieta »

According to the SSA website the benefits ARE payable to an ex spouse in the case of a voluntary suspension. On page 67 of this book it is stated that ex spouse is NOT entitled to benefits. "That means no spousal benefits, nothing for an ex spouse, and ...."

Here it is from SSA website, I copied and pasted it in:

"Note: Effective April 30, 2016:

We will no longer permit suspension of retroactive benefits in situations where you apply for benefits and we have not yet made a determination regarding your entitlement.

If you voluntarily suspend your retirement benefit and you have others who receive benefits on your record, they will not be able to receive benefits for the same period that your benefits are suspended. Please note that there is one exception; divorced spouse’s will be able to continue receiving benefits.

If you voluntarily suspend your retirement benefit, any benefits you receive on someone else’s record will also be suspended. Your Part B premiums cannot be deducted from your suspended benefits.

If you request voluntary suspension on or after April 30, 2016, we will only permit benefit reinstatement beginning with the month after the month of your request"
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Re: "How to Make Your Money Last" -- A Gem

Post by Artsdoctor »

chx wrote:As with most advice tomes of this sort, it comes across as trite and overly full of generalizations.
Fortunately for you, it probably states things that are obvious to you. However, you'd be shocked, it appears, to find out that the vast majority of people may be reading some of those things for the first time.

I read her book when it first came out and can vouch for the vast majority of what she writes. I've already given it to a couple of my associates who invariably learned a lot from it.
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Re: "How to Make Your Money Last" -- A Gem

Post by livesoft »

JBQ's book is a fantastic book for folks about to retire who haven't figured out anything and also for those who think they have everything figured out. It is indispensable for the first group and has many helpful reminders for the second group. It is also a good book for folks whose spouse has recently passed away.
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Post by McCharley »

I had thought that all annuities were a bad idea except under very specialized circumstances. :confused

Why are they regarded so favorably in this book?
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Post by dodecahedron »

McCharley wrote:I had thought that all annuities were a bad idea except under very specialized circumstances. :confused

Why are they regarded so favorably in this book?
SPIAs ("Single Premium Income Annuities") are generally well-regarded on this board. See the wiki article on them. Not everyone wants or needs one, but they are a valuable tool in some situations. They are straightforward and relatively easy to comparison shop. In that sense, they are analogous to term life insurance.

For that matter, Social Security is an annuity and most folks on this board find it a very worthwhile tool, often using deferral strategies to effectively "purchase more" of the annuity.
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Re: "How to Make Your Money Last" -- A Gem

Post by livesoft »

McCharley wrote:I had thought that all annuities were a bad idea except under very specialized circumstances. :confused

Why are they regarded so favorably in this book?
I read the book and did not find them to be regarded so favorably in this book.
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Peter Foley
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Re: "How to Make Your Money Last" -- A Gem

Post by Peter Foley »

chx wrote:
As with most advice tomes of this sort, it comes across as trite and overly full of generalizations.
While I think this is a little harsh, I can understand where chx is coming from. I read the book and participated in a review/conversation about the book at the recent MN Bogleheads meeting. I think some of the positive and negative assessments of the book are related to Jane Bryant Quinn's audience. Dare I say intended audience.

If you need to stretch to make your money last and do not have a lot of depth of knowledge with respect to personal finance, this book will serve you well. If you have enough money to retire comfortably and/or have read a number of books on retirement you will find many of the chapters not relevant to your situation and some of the advice so general that you catch yourself saying, "It depends."

Personally, I was expecting more than two chapters to be focused on investing and felt the book lacked depth with respect to income taxes in retirement. I was not expecting lengthy sections on annuities, reverse mortgages and cash value life insurance.
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Re: "How to Make Your Money Last" -- A Gem

Post by itstoomuch »

dodecahedron wrote:
McCharley wrote:I had thought that all annuities were a bad idea except under very specialized circumstances. :confused

Why are they regarded so favorably in this book?
SPIAs ("Single Premium Income Annuities") are generally well-regarded on this board. See the wiki article on them. Not everyone wants or needs one, but they are a valuable tool in some situations. They are straightforward and relatively easy to comparison shop. In that sense, they are analogous to term life insurance.

For that matter, Social Security is an annuity and most folks on this board find it a very worthwhile tool, often using deferral strategies to effectively "purchase more" of the annuity.
Bold added

I would argue that SPIA are more analogous to WL, not term LI. :idea: :oops: :oops:
This argument deserves an individual thread. :mrgreen:
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo
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Re: "How to Make Your Money Last" -- A Gem

Post by Engineer250 »

Morse Code wrote: Lots of good stuff here, Taylor, but I did find these two to "nit pick":

SS America's finest retirement plan? I've seen multiple studies that show it to be one of the worst. I know I would gladly give up my right to all future benefits if I could just have my contributions back.
Care to link one of these studies? I would be curious to read them.
Morse Code wrote: And the quote about "tilting" shows a surprising ignorance about it. Tilting away from the market portfolio has nothing to do with knowing which particular industry will do best.
Then care to describe what you think tilting is about then if not predicting?
Where the tides of fortune take us, no man can know.
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Re: "How to Make Your Money Last" -- A Gem

Post by finite_difference »

Put something useful or interesting into your schedule every day. -- Something you have to do (or want to do) that gets you up in the morning.
I really like this quote. Sometimes there are a lot of things you don't want to do but focusing on something that you want to get done (in addition to the other stuff) can definitely be a great way to stay motivated.
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh
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Re: "How to Make Your Money Last" -- A Gem

Post by Fallible »

finite_difference wrote:
Put something useful or interesting into your schedule every day. -- Something you have to do (or want to do) that gets you up in the morning.
I really like this quote. Sometimes there are a lot of things you don't want to do but focusing on something that you want to get done (in addition to the other stuff) can definitely be a great way to stay motivated.
And that's also what retirement should be about - at last being able to do what we want to do, which is probably what we do best. :happy
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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Re: "How to Make Your Money Last" -- A Gem

Post by Grt2bOutdoors »

Morse Code wrote:
Taylor Larimore wrote:Bogleheads:I love Social Security. It's America's finest retirement plan. Nothing else gives you the same combination of income for life, inflation protection, tax benefits, government-backed payment guarantees, and built-in spouse protection, with no annual investment fee and no market risk.

A common piece of advice is to buy a total market fund, then add a couple of other funds that you imagine will beat the market. That's called "tilting" your portfolio. I don't tilt, myself. I'm not smart enough to know which particular industry will do the best.
Lots of good stuff here, Taylor, but I did find these two to "nit pick":

SS America's finest retirement plan? I've seen multiple studies that show it to be one of the worst. I know I would gladly give up my right to all future benefits if I could just have my contributions back.
Ah yes, looking forward you're willing to give up your right, but what about the past benefits you implicitly collected? Hmm? The common misperception is Social Security is a retirement plan - it is not! It is a hybrid insurance/retirement plan, unique in that there is no other plan out there that offers the level of benefits you could receive for the premium payments made. I encourage you to delve a bit deeper rather than relying on third party research to make decisions for you. Dig deep, and be thankful you had such coverage during your working years, had the shoe been on the other foot, you'd be counting your lucky stars you did belong to such a program.
And the quote about "tilting" shows a surprising ignorance about it. Tilting away from the market portfolio has nothing to do with knowing which particular industry will do best.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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Re: "How to Make Your Money Last" -- A Gem

Post by bcboy57 »

I read this book a couple of months ago.....it is really a GEM !
mraynor
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Re: "How to Make Your Money Last" -- A Gem

Post by mraynor »

An excellent assembly of wise advise; thank you very much for your efforts in sharing this!!
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Re: "How to Make Your Money Last" -- A Gem

Post by CrossOverGuy »

I'm reading the updated version of this book, and it's really excellent. It's very much worth the approx. $12.50 for a paperback version on Amazon these days, what with fine advice about when to take Social Security, information about Medicare and health insurance before you're eligible for Medicare, how much percentage of money to take out when one is retired, how to plan for retirement in terms of investments, etc. I'd venture to say it's just as useful to folks who are 10 years or more away from retirement so they have time to adjust their investments and to think about what their budgets might be at present and later in retirement, as well as thinking about how they want to spend their time and their money once they reach retirement. Not all of the chapters might be relevant or of interest to all, and you might not agree with her about everything, but she's regarded as one of the more practical financial writers out there; I've found it to be worth having for future reference as well. Especially since some books are about investing and amassing a nest egg, but don't (like this one does) go into actually finding ways to actually spend that nest egg in retirement as tax-effectively as possible, especially if you have some accounts with RMDs that you have to start withdrawing from.
bfeenix44
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Re: "How to Make Your Money Last" -- A Gem

Post by bfeenix44 »

Excellent book... I read it a couple of years ago. It's actually where I first heard Bogleheads mentioned... If not for her I might never have found this forum!
Portfolio here: | https://www.bogleheads.org/forum/viewtopic.php?f=1&t=345748&p=5936072#p5936072
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Re: "How to Make Your Money Last" -- A Gem

Post by birdog »

I just read this book in January and was amazed by the level of detail she went into in the book. It was no small task to research and write this book. That's why reading is such a superpower for life. You can read one book and in a week learn what it took the author years to study, compile, organize, write and publish.
552BB
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Re: "How to Make Your Money Last" -- A Gem

Post by 552BB »

Good morning Bogleheads



I have not read this one. It will be next on the list.

I like the listed ‘gems’.

I will enjoy it with my morning coffee.



:sharebeer
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fishandgolf
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Re: "How to Make Your Money Last" -- A Gem

Post by fishandgolf »

CrossOverGuy wrote: Sun Feb 14, 2021 10:39 pm I'm reading the updated version of this book, and it's really excellent. It's very much worth the approx. $12.50 for a paperback version on Amazon these days, what with fine advice about when to take Social Security, information about Medicare and health insurance before you're eligible for Medicare, how much percentage of money to take out when one is retired, how to plan for retirement in terms of investments, etc. I'd venture to say it's just as useful to folks who are 10 years or more away from retirement so they have time to adjust their investments and to think about what their budgets might be at present and later in retirement, as well as thinking about how they want to spend their time and their money once they reach retirement. Not all of the chapters might be relevant or of interest to all, and you might not agree with her about everything, but she's regarded as one of the more practical financial writers out there; I've found it to be worth having for future reference as well. Especially since some books are about investing and amassing a nest egg, but don't (like this one does) go into actually finding ways to actually spend that nest egg in retirement as tax-effectively as possible, especially if you have some accounts with RMDs that you have to start withdrawing from.
+1000

I read it a year ago (Kindle version)......excellent book with common sense advice.....well penned! Tried to get my BIL to read it. They are using a financial advisor to manage their portfolio......funny thing.....they have no ears for wanting to save $ on their portfolio.

What I have observed over the years, when the "investment" topic comes up in a discussion, most folks have no interest in the DYI investment style. Even with Vanguard's PAS plan, with it's paltry 0.30 annual fee, there is very little interest in wanting to depart from their advisors. Must be the birthday card they get from their advisor that keeps them going back..... :(
mr_brightside
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Re: "How to Make Your Money Last" -- A Gem

Post by mr_brightside »

have a birthday coming up

will be getting that book one way or another :D

---------------------------------------------
remember Enron?? I do
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