Book Review: The Race of Your Life: How To Reach Retirement With Cash In The Bank And Fuel In The Tank by Darryl Rosen

The Race of Your Life: How To Reach Retirement With Cash In The Bank And Fuel In The Tank by Darryl Rosen


If you are looking for a detailed manual of how to invest in the stock market, this ain’t it. However, if you are looking for some good, down home advice about how to plan your retirement, The Race of Your Life: How To Reach Retirement With Cash In The Bank And Fuel In The Tank by Darryl Rosen is the right book for you.

We have reviewed investment books that compared investing to baseball, golf, basketball, and other sports but, this is the first to compare planning for retirement to running a marathon. This analogy works very well.

The Race Of Your Life is very well-written and easy to understand. Heck, even this ol’ redneck understood it and I get out of breath walking from my recliner to the supper table. We give it all five stars.

If you have no idea about how to invest, you may want to start with some more instructive books such as Master Your Cash Flow by Al Zdeneck, Jr. or The Financial Briefing by Eric Hutchinson. However, if you need a good common-sense guide to planning for retirement, The Race Of Your Life works very nicely.

We were sent a complimentary copy of this book. We are under no obligation to write any review, positive or negative. We are disclosing this in accordance with the Federal Trade Commission's 16 CFR, Part 255.  

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Guest Post: 3 Retirement Scenarios That Every Couple Needs To Be Ready For

3 Retirement Scenarios That Every Couple

Needs To Be Ready For

The golden years look murky for many married couples who are still years away from retirement. Statistics show they haven’t planned well financially.

Almost half of married Americans – 46 percent ­– die nearly broke, according to a recent study by the National Bureau of Economic Research.  Surveys by GoBankingRates showed 56 percent of Americans have put away less than $10,000 toward retirement, and that about 75 percent over age 40 are behind on saving for retirement.

The uncertainties that lie ahead in retirement – life span, health, market factors, unexpected expenses – make it important for married couples to have different income plans in place to cover various scenarios.

“Every married couple needs three retirement-income plans, but most don’t even have one,” says Jeff Dixson (www.nwfts.net), a financial educator and radio talk-show host on retirement-planning matters.

“Nine out of 10 people do not have a financial plan at all. They may have some investments, but that’s not a financial plan, especially for retirement. They typically don’t understand how each investment works, what fees they’re paying, and the tax advantages and disadvantages.”

Dixson outlines three scenarios that married couples can experience in retirement and how they can get through it or plan ahead accordingly.

• Plan A: What if you both live to be 100? One of the biggest fears people have in retirement is outliving their money. So, to do well if you both live well past normal life expectancy, it’s important to have money coming in from a solid combination of sources, Dixson says. For example, married couples may have two Social Security checks, one or two pension checks and then their investible assets. With that many income sources, they might be OK. Pensions, though, will be fewer in the future, Dixson cautions, so it’s vital for those without one to plan ahead regarding the other assets.

• Plan B: What happens to her if he dies first? This will immediately impact the monthly cash flow, Dixson says. The wife would get to keep the higher of the two Social Security checks but not both. Planning beforehand regarding how the husband’s pension check is set up, and whether he had a survivor benefit for the spouse, has a big effect on monthly income.

• Plan C: What happens to him if she dies first? It’s a similar scenario to Plan B, with less monthly income due to the loss of one Social Security check. Proactive planning in asset areas can help cover the gap. Dixson says the volatility of the stock market the past two decades means retirees can’t bank on the same withdrawal rates previous generations have used. This will affect the income stream a retiree can generate, ultimately making things that much more difficult for today’s retirees.

“There are a lot of pieces to the retirement puzzle,” Dixson says. “It simply makes sense to plan proactively for what could happen in the future instead of burying your head in the sand.”

About Jeff Dixson

Jeff Dixson (www.nwfts.net) is known as “The Retirement Coach” and is the founder and president of Northwest Financial & Tax Solutions, Inc. A respected financial educator, Jeff hosts a weekly radio show that airs on seven stations and is author of Winning The Retirement Game.

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Guest Post: Life Insurance Isn’t Always About Death; It’s Also A Retirement Tool

Life Insurance Isn’t Always About Death;

It’s Also A Retirement Tool

Many Americans view life insurance policies as a key part of their financial planning. But they tend to think in terms of how the insurance will benefit their survivors after they are in the grave – not how it might benefit themselves while they are very much alive.

If that’s the way they see it, though, they may be missing out on an additional way to help pay for retirement – something especially worth knowing if other investments go awry or a pension is non-existent.

“I think a lot of people are surprised to learn that their life insurance policy can help them handle expenses during retirement,” says Gary Marriage Jr., CEO of Nature Coast Financial Advisors. “They consider life insurance a death benefit. But it can be a lot more than that.”

How so?

Essentially like this, Marriage says: Over the years, a person pays premiums into a permanent life insurance policy with the intent to provide a death benefit as well as cash-value accumulation for as long as the policy remains in force.

If they reach retirement, and aren’t as concerned with the death benefit, they can withdraw from the insurance policy without paying taxes. Usually, you can withdraw up to the amount that you paid in premiums over the years, Marriage says.

Some other advantages include:

• Contribution limits don’t apply. The government puts a limit on how much money you’re allowed to contribute each year to an IRA. So your IRA is going to grow, but not to the degree that you would like. If you structure a life insurance policy so that it’s part of your retirement plan you don’t face those same dollar-amount limits, Marriage says.

• The cash value of the policy grows each year with interest, tax deferred. Investing in or purchasing a tax-deferred vehicle means your money can compound interest for years, free from income taxes, potentially allowing it to grow at a faster rate. And if you’re worried about the stability of the insurance company, the fact is insurance companies are some of the strongest financial institutions in the world.

• When you leave your children the money you’ve accumulated in an IRA, they have to pay taxes on it. But the beneficiaries of a life insurance policy don’t have to pay taxes.

• The federal government will penalize you if you withdraw money from an IRA or a 401(k) before you turn 59½. But if you need some of that life insurance money at an earlier age, you can withdraw without paying a penalty.  That’s a big advantage for those who suddenly find themselves in need of cash, but don’t want even more of their retirement savings to disappear into Uncle Sam’s coffers, Marriage says.

“It’s really important for people to take advantage of all the options they can when it comes to retirement,” Marriage says. “I think many people underestimate how much money they’ll need, often because they don’t take into account all the factors like taxes and inflation. Maybe you’d never have to tap into that life insurance policy and it can all go to your beneficiaries. But it would be nice to have it there in case the need arises.”

About Gary Marriage Jr.

Gary Marriage Jr. is the founder and CEO of Nature Coast Financial Advisors), which educates retirees on how to protect their assets, increase their income and reduce their taxes. Marriage is a national speaker, delivering solutions for pre-retirees, business owners and seniors on the areas affecting their retirement and estates. He is an approved member of the National Ethics Bureau, and has been featured in “America’s Top Hometown Financial Advisors 2011” and was selected to contribute to a book with Steve Forbes titled “SuccessOnomics: Power Principles” and became a “Best-Selling Author” as a result. Marriage is also the founder of Operation Veteran Aid, an advocate for war-time veterans and their families.

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Guest Post: 3 Tips For Women Worried About Outliving Their Retirement Nest Egg

3 Tips For Women Worried About Outliving

Their Retirement Nest Egg

Few things make retirees more nervous than the possibility their savings could run dry.

And the situation can be even more troublesome for women, who are at greater risk of outliving their money because, on average, they live longer than men. In fact, women over the age of 65 are 80 percent more likely than men to spend their retirement years impoverished, according to a study by the National Institute on Retirement Security.

“Many women don’t realize just how long they may live in retirement and how long their savings need to last,” says Beth Andrews, founder of Networth Advisors (www.bethandrews.info), a financial-planning firm that recently launched the Woman’s Worth® program with the goal of improving the retirement outlook for female clients.

“These days, it’s not unusual for someone to live into their 80s or 90s, and even past 100,” Andrews says. “Your retirement, in other words, could last many more years than you ever imagined.”

Women typically face situations men don’t.

“Just think of it this way,” Andrews says. “Most men die married. Most women die single. Generally, that means men will have someone who’s caring for them right up to the end. Women will be left to care for themselves.”

She suggests a few steps women should consider to reduce their risk of running out of money before they run out of life:

• Delay Social Security. You can claim your Social Security benefits as early as age 62, but if that’s your plan you might want to reconsider, Andrews says. Taking Social Security early means you permanently will receive a lower monthly payment. Unless a personal situation forces your hand, she says, it may be better to wait until you reach your full retirement, which is from 66 to 67, depending on when you were born. If you can put off claiming Social Security until you are 70, those monthly payments would grow even more.
• Plan for inflation. Too many people – women and men – think in terms of today’s dollars when they are trying to plot out how much money they will need in retirement. As decades pass and the cost of living rises, those dollars are going to buy a lot less -- so it’s essential that you factor inflation into your retirement planning, Andrews says.
• Take care of your health. This one might not sound like a financial issue, but medical bills and long-term care expenses can gobble up savings quicker than nearly any other expense. Regular exercise and healthy eating can go a long way toward keeping both your body and your savings account fit.

“There are other things you’ll want to consider as well,” Andrews says. “For example, you may want to put off retirement and keep working longer than you originally planned. The important thing, though, is that you start thinking about what your retirement plan is and what you need to do to help make sure it doesn’t fall apart.”

About Beth Andrews

Beth Andrews, a CPA and Certified Financial Planner®, is founder of Networth Advisors LLC (www.bethandrews.info). As an experienced financial advisor, she specializes in the areas of retirement planning, retirement distribution planning, tax strategies, investments and insurance. Beth offers investment advisory services through AE Wealth Management (AEWM), LLC.  Networth Advisors and AEWM are not affiliated companies. She and her husband Todd, a retired millwright for US Steel, have been married for 23 years and live in Eighty Four, PA near their family. Andrews received her accounting degree from Indiana University and started as a financial advisor in 1997. She founded Networth Advisors to help clients accumulate, protect and enjoy their wealth.

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Article: Are Women Prepared For Life Alone As They Age?

Are Women Prepared For Life Alone As They Age?

The trends are clear – as women age the odds are they will be living alone, largely because of either divorce or widowhood.

What may be less clear for many of them is whether they are prepared for that life alone – both emotionally and financially, says Susan L. Hickey, a financial professional at Your Own Retirement LLC (www.yourownretirement.com/womansworth).

“Although both men and women could live three or four decades in retirement, it’s more likely for women because they have longer life expectancies,” Hickey says. “But they also often have less in savings, and smaller or no pensions, so their longevity can work for them and against them.”

Almost half (46 percent) of women who are 75 or older live alone, according to the U.S. Department of Health and Human Services’ Administration for Community Living.

But women, many of whom are heads of households, don’t always do a good job of planning for their retirements because they spend so much of their time thinking about the needs of others – their children, their spouses, their aging parents, Hickey says.

“They need to realize that their happiness and security in their later years can hinge on so many things, and not just their savings,” she says. “So many factors come into play.”

Hickey says some mistakes women make in planning for retirement, and what they can do to correct those mistakes, include:

• Failing to participate in planning. Many women traditionally have left the retirement planning to their husbands and that’s a mistake, Hickey says. Women should be actively involved. They need to understand their financial situation, what would happen if their spouse dies and where all the important papers are kept. When a meeting happens with a financial professional, they should be part of that and help make the decisions.
• Underestimating how long they will live. For some reason, many women have trouble imagining just how long retirement might last. Life expectancy for women in the United States is about 81, and that’s an average. Many women will live into their 90s and some will pass 100. When planning and saving, women need to consider that they might still be living 30 or 40 years after they retire.
• Failing to protect their health. Maintaining your general health and well being is important because medical costs can eat into retirement money, Hickey says. The nest egg that someone thought would be more than sufficient can start disappearing quickly when there are significant medical issues. Women need to make sure they get exercise, eat healthy meals and keep up with those doctor visits.

“So much of this is connected,” Hickey says. “When women feel that they have a good financial plan in place, they are more likely to feel secure and that’s good for both their physical health and their emotional health.”

About Susan L. Hickey

Susan L. Hickey (www.yourownretirement.com/womansworth) is a financial professional at Your Own Retirement, LLC. She helps guide clients, many of which are single women or female heads of households, on the many facets of planning for retirement. Because of her advocacy Sue combines numerous elements of retirement income planning through the use of insurance products, which includes strategies for claiming social security benefits, Medicare costs, long-term care concerns as well as traditional income needs.  She holds her life and health insurance licenses, and has earned the distinguished Retirement Income Certified Professional designation.




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