Reddit reviews The Bogleheads' Guide to Retirement Planning
We found 14 Reddit comments about The Bogleheads' Guide to Retirement Planning. Here are the top ones, ranked by their Reddit score.
I used to sell annuities as a broker, yes this is the main reason. You are better off investing in a Roth IRA or some other retirement account first, then - if possible when you retire - obtain a variable annuity with a principle/income protection (just in case the market crashes, but you get more dough when it goes up, than fixed).
Long story short, read Bogleheads Guide to Investing or Bogleheads Guide to Retirement; sources:
The Bogleheads' Guide to Investing https://www.amazon.com/dp/1118921283/ref=cm_sw_r_cp_api_d006Bb505YNH1
The Bogleheads' Guide to Retirement Planning https://www.amazon.com/dp/0470919019/ref=cm_sw_r_cp_api_z006Bb4QAZKBM
These two books are more than enough to give anyone the knowledge in terms of investing and retirement planning. Or just hit me up with questions, please note that I haven’t been licensed in almost a decade, because I had chosen not to renew my series 6 and 63. Anyway, I hope my post helps.
Edit: damn autocorrect.
The Bogleheads' Guide to Retirement Planning This is a great book. It covers investing but goes heavy into retirement planning.
I think everyone should read the Bogleheads books to get a start on their retirement and investment planning. Both are easy to read and spell out the basics.
http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365/ref=sr_1_1?ie=UTF8&qid=1347920928&sr=8-1&keywords=bogleheads+guide+to+investing
and
http://www.amazon.com/The-Bogleheads-Guide-Retirement-Planning/dp/0470919019/ref=sr_1_2?ie=UTF8&qid=1347920928&sr=8-2&keywords=bogleheads+guide+to+investing
That book, The Bogleheads Guide to Retirement Planning, and the forums and wiki at https://www.bogleheads.org/ are where I got my start in retirement investing.
For retirement: buy this book, read it, do what it says.
http://www.amazon.com/The-Bogleheads-Guide-Retirement-Planning/dp/0470919019
As for tax advantages, I recommend you consult an accountant. There may be deductions you can take.
Boglehead's has a book specifically for retirement planning. This might be a good place to start if they are English speaking. If they are not English speaking, it will be up to you to educate yourself and then educate them. You can't force the knowledge on them, but you need to keep in mind that if they don't have enough money in retirement, they will likely be relying on you to support them. Maybe sitting down and talking to them about your concerns would be a good way to get them concerned as well.
Any of the Boglehead books are great.
Here's the conventional wisdom on what to choose from:
http://www.bogleheads.org/wiki/Prioritizing_investments
>+ Company plan (401k, 403b, etc.) up to the company match
Company match is a free guaranteed return. Usually this is quite generous.
>+ Health Savings Account, if eligible.
This is only if you have a high deductible health plan. That's an official IRS definition and your plan must specifically say it's a qualifying plan. Having high deductibles isn't enough.
>+ Roth IRA or deductible traditional IRA up to maximum contribution limit, depending on personal circumstances and eligibility.
If you think your taxes at retirement will be higher than now (remember that taxes are now at all-time lows) then go with the Roth plan. If you think your taxes at retirement will be lower than now (possible if your current income is high enough that you're a couple tax brackets up) then go with the Traditional IRA.
You can switch back and forth from year to year as circumstances change. It's helpful to have both taxable and non-taxable income available during retirement so one can stay in appropriately low tax brackets.
>+ Company plan up to maximum contribution limit
These are rare, but sure, it might offer some benefits over taxable accounts.
>+ Taxable investing
These are nice because they can be used pre-retirement if necessary. Plan for long-term investing and you can also get decent tax rates.
This is the book with details:
http://www.amazon.com/The-Bogleheads-Guide-Retirement-Planning/dp/0470919019
Don't pay off the house! The way inflation is going it is much better to pay your mortgage with future watered down dollars and you get to write off the interest in the mean time.
Go here http://www.bogleheads.org/forum/viewforum.php?f=1&sid=e7eb3112918c466c56250d9de7993c31 and they will help you figure it out.
2% is criminal unless you are about to retire you could get 5% in bonds and be completely safe. I made 24% last year just buying the market and my Fiance's finance guy got her 12% (due to fees). Paying people for financial management seems like a waste to me when you can educate yourself a bit and not pay fees.
Main things to understand are diversifiable risk, expenses ratio, stock/bond ratio, asset allocation, rebalancing, tax loss harvesting, and tax efficiency. If you knew about these things last year you would have made 24% instead of 2% because all I did was buy the market and add a little extra exposure to small and foreign companies.
This book might help http://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470919019/ref=sr_1_2?s=books&ie=UTF8&qid=1302800416&sr=1-2
Before paying someone, spend some time poking around on here. They also have a couple helpful books that sum everything up in layman's terms.
http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/1118921283
Then
http://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470919019
Buy this book: http://www.amazon.com/The-Bogleheads-Guide-Retirement-Planning/dp/0470919019
Two words: Index funds
Vanguard is the leader in providing reputable index funds with outrageously low fees. A lot of mutual funds will charge an expense ratio of 0.5% to 2%, which doesn't sound like a lot, but adds up big time in the long run. Vanguard's index fund expense ratios can be as low as 0.05% Considering that the bulk of managed mutual funds don't regularly beat the market, the index fund seems like the best bet for the everyday investor.
Set up an IRA, or an employee sponsored 401k, and begin putting in an affordable amount every month (dollar-cost averaging). Don't worry if the market is up or down, it all balances out in the end (timing the market is impossible for the average investor, and in the long run doesn't matter much anyways). Read up on bogleheads, check out r/investing, don't try to time the market, and remember that dollar-cost averaging is your friend.