This is a reoccurring post about my reading habits. So, let me start this post off by saying …I read a lot.
And not just ‘cus it gives me that sexy Librarian, nerdy look, either. I read mostly because I’m an introvert and its how I recharge. And its also because my mom was a librarian and I was pretty much born and raised in the library. Also, I currently work in the library part-time, so I guess you can say me and my relationship with books are pretty serious.
FUN FACTOID: Please say the BR in liBRary, fam. Librarians and library frequenters silently judge you when you say lie-BERRY. Ya welcome.
Ok, anyway. Because I read so much, mostly books about personal development and of course, personal finance, people ask me what I’ve been reading, lately.
So, this month, I thought I’d share with you!
I am currently reading: How to Retire with Enough Money by Teresa Ghilarducci.
It’s funny. This book actually sparked a conversation between me and a coworker; She noticed my book and revealed to me her shock that I’m so “young” to be worried about retirement and that she hasn’t even started her retirement planning yet and let me tell you… she is MUCH closer to it, than I.
Say word? You think I’m young?? How sweet!
I explained to her that I’d rather start “too’
early instead of being too late. I doubt that by the time I retire, there will be any government program to rely on to assist me in maintaining my future way of life. Na’mean?
Fast forward to 10 minutes later and we are discussing how her and her husband should go about evaluating their retirement plans/ accounts and she checked out a few books about retirement, including this one, as preparation. She’s welcome.
Anywhoo, back the book:
First things, first. This book was written by Dr. Teresa Ghilarducci, a no-nonsense economics professor, a retirement and savings specialist, and a trustee to two retiree health-care trusts worth over $54 billion. So, she kinda knows what she’s talking about with respects to the potential future of our retirement plans.
One thing that I liked about this book was how thin it was. Even though I enjoy reading, I know I am incapable of digesting a 500+ plus page book about finances and/ or retirement. This book was only 144 pages and is really a single-sit read. But don’t let the lack of information deter you. Reading this book can change your mindset about the course of your retirement and cuts through the bullshit misinformation and bad policy-making that causes us confusion and anxiety about retirement and can help us avoid spending or saving poorly.
The book begins with acknowledging what an individual or couple actually needs to have saved…
SPOILER ALERT: The rule of thumb is eight to ten times your annual salary, prior to retirement
…and how much to expect from Social Security.
ANOTHER SPOILER ALERT: Not nearly as much as you were making whilst still gainfully employed, and even less depending on the age you retire
The majority of Americans over age fifty have just $30,000 or less saved for retirement. Tens of millions of Americans turning sixty-five in the next decade will be living at or near the poverty level. Dr. Ghilarducci believes that IRAs, 401(k)s and Social Security won’t be enough for many middle-class retirees and she has long advocated for replacing 401(k)s with a federally-managed saving plan.
Throughout the book, she details the basic principles that will make your money grow, including a few good ideas to get current expenses under control. These include why to “get rid of your guy”—those for-fee (or hidden-fee) financial planners that suck up valuable assets and why it’s always a good idea to pay off a loan or a mortgage, as soon as possible.
There are no gimmicks, no magical thinking—just an easy-to-follow program that seems sound. I plan on applying some of her principles to my own retirement plan so that I can hopefully avoid a rut by the time I’m ready to retire.
What do you think? Have you read this book? Any suggestion for a book I should read, next? Let me know in the comments!