Excerpts from "New Rules of Retirement"

From "Understand How Retirement is Evolving":

“The options you have as you enter into this next phase of your life are greater than ever before. However, these additional options and choices do not always make decision making easier. You can have a more customized lifestyle but it might be more complicated. Your life might be more rewarding but at the same time more demanding as well.”

“This myth is perpetuated by a financial service industry that has much to gain by equating more wealth with greater happiness. The more you save, the more your wealth grows, the more you make, the happier you become—and the more you invest in their products.”

 

From "Create a Vision for Your Future":

“We all have the lottery fantasy. ….. Although only a lucky few ever win the lottery, almost everyone will eventually retire and have the chance to turn their retirement fantasy into reality. The question now becomes will your retirement be analogous to winning the $5 million first prize or the $10 consolation prize.”

“We also often overlook how the aging process will impact us mentally and physically. When you set your goals it is important to understand how your needs and attitudes will change as you age. “

 

From "Estimate Living Costs in Retirement":

“We believe there is an optimal balance between spending too much and needlessly doing without. A major challenge of retirement planning is to find that optimal balance.”

“Financial planners typically spend most of their time and effort on the income and financial side of a client’s balance sheet. ….Very few are knowledgeable on the spending and expense patterns of retirees, but all profess to be “experts” on investing. However, in order to have a financially secure retirement, the proper management of your retirement budget is just as important as the proper management of your investment portfolio.”

“Not only does the spending pattern change from pre retirement to post retirement, but there is also a noticeable change in expenditures and consumption during different phases of our retirement as we age. A 65 year old has different spending patterns than one who is 85.”

 

From "Determine Your Retirement Income":

“In reality, many retirees have seven pillars. Besides the above three, there is income from a job, income from savings, income from the equity in a home, and financial support and inheritances from family.”

“The only thing we know for sure about the future is that there will be surprises. The more distant the future, the greater the amount of uncertainty, and the more risks associated with it.”

 

From "Create an Effective Investment Plan":

“The financial service industry, dominated by the big banks, insurance companies, and mutual fund companies, aggressively sell investment products to the investing public. Because of this, many investors believe that the key to financial success is to find the best investment product,…. We believe, on the other hand, that the key to successful investing is not to find the best new product - it is to follow an investing process.

“In a well-designed investment portfolio, higher returns are associated with higher risk and prudent investors take no more risk than is necessary to achieve their financial goals. The downside of additional risk is the possibility that someday you will lose so much of your capital that it will have a negative effect on your lifestyle.”

“Many of today’s mutual fund investors have portfolios that are extremely complicated…. It is not uncommon for some mutual fund investors to have an overall portfolio with a level of complexity that might rival that of a pension plan worth billions of dollars.”

 

From "Construct a Solid Investment Portfolio":

“Investors have three options when they are constructing an investment portfolio: building it from the stocks and bonds that make up the capital markets, using mutual funds or other managed funds, or using some combination of the two. ..Building a sensible portfolio is not that difficult to do, but you do need to understand the strengths and limitations of each option to be successful”

 

From "Manage Your Investments Wisely::

“Investment success is not guaranteed for those with knowledge and experience, and it is possible for investors with limited interest and knowledge to do just as well, if not better, than experienced investors who are involved with their investments on a day-to-day basis.”

“To get the best results it is important to understand your strengths and weaknesses and to define the role you will take in the investment process… The role you choose depends on your level of interest, involvement, skill, and experience.”