Strategic Diversification Book Overview
Strategic Diversification: Retirement Planning that Works provides proven solutions that answer key questions about retirement.
- Am I saving enough for retirement?
- How should I invest my retirement savings in the current economic environment?
- Will I be able to retire with the lifestyle I want?
What is your vision of retirement? Twenty years ago retirement meant spending your time pursuing a hobby, or enjoying your family instead of working. Today, the definition of retirement has changed; it is no longer only a time to relax in your golden years. Life expectancies have increased, and quality of life is constantly improving. Therefore, retirement can mean traveling extensively, starting a new career in an industry you enjoy, spending time with your children and grandchildren, or enjoying anything you can imagine.
Coupled with longer retirements, companies are rapidly moving away from defined benefit plans (i.e. pensions) and into defined contribution plans (i.e. 401k and 403b). With a pension plan, professional money managers are hired by your employer to manage the pension fund. With defined contribution plans, you are responsible for both contributing to and managing the portfolio that will generate income for you in retirement.
Managing your own retirement portfolio provides many benefits. You have more flexibility in managing and spending the money you save. For example, taking a big vacation immediately upon retirement, then generating income with the remaining portfolio is a popular approach. Additionally, some of the money you save for retirement can be passed to the next generation, or used to support your favorite causes, allowing you to leave a lasting legacy.
With the benefits of defined contribution plans comes the responsibility of learning about saving and investing for retirement. You have two options: learn the necessary skills and manage your own retirement portfolio, or hire an investment manager to develop your retirement plan and manage your retirement portfolio. Whatever your choice, educate yourself on the essentials of saving and investing for retirement. Whether you are just starting your career or nearing retirement, Strategic Diversification gives you an easy to use road map for retirement saving and investing. The book provides a straight forward method of determining if you are saving enough to live the retirement you envision. Then, the book leads you through an investment approach that has been proven effective during good markets and bad over the past 40 years and updates the approach with the latest research on investing. Then the book shows you how to build and manage your retirement portfolio based on your specific situation, taking into account your investing time horizon, risk tolerance, tax situation and necessary return.