Regardless of where they are in their retirement planning – it is never too early nor too late to start — people can generally benefit from reading what experts have to say on the subject. In fact, there is a veritable cornucopia of books about the very important issue of retirement planning, from investing and budgeting to lifestyle choices and knowing when to stop working, to everything in between.
After all, retirement planning considers not just income and assets, but future expenses, liabilities, and life expectancy also.
To save time, here is a curated list of books with diverse and varied perspectives from well-regarded field experts. It is a trove of tried-and-true tips and practices.
The following are the top recommended publications. Do note that some of the editions are on the older side but were still chosen because of the contents’ rich value.
There are some common questions that people have regarding retirement, including surrounding how much money they will be able to save. A better question, though, might be, how much money will be needed? Some experts suggest that, for those who plan to claim Social Security benefits at age 67, investments should comprise 45% of their retirement income, with Social Security making up the balance. Another school of thought is that one needs enough to enable them to live on 80% of their income at retirement.
Another common question has to do with how long retirement will last. According to Money Guide, a married 65-year-old woman has about a 50% chance of reaching their 90th birthday. Because one’s Golden Years could last longer than one may anticipate, proper planning is essential.
In addition, many people planning for their post-working years want to know what key investment, tax, and savings information one should plan around. This is where it is essential to speak with an investment planner to apply what you have learned from reading to one’s personal situation.
Then there is the common question about what one should do with their home upon retirement. Perhaps now that the children are gone, a smaller abode is in order. A retirement plan should include a clear-eyed look at one’s current home and what they should do with it.
Yes, a wealth of financial information can be found in books. However, one should not stop there, when educating themselves. There are resources such as online courses and webinars, even financial advisor finder tools.
The website for the Social Security Administration can provide an estimation of what people who have worked most of their lives can expect to receive. NerdWallet’s financial assistance often includes retirement, and RetirementRevised.com includes a wide range of retirement information and tools.
Note that whether it is an individual retirement account or an alternative investment and passive income, a big part of retirement planning education has to do with investing, including how diverse one’s portfolio is. Diversification can help lessen the overall risk and volatility of investment holdings. Using retirement calculators is also another way to understand where you currently are financially.
Alternative investments can be a good way to help accomplish this. Traditional portfolio asset allocation envisages a 60% public stock and 40% fixed income allocation. However, a more balanced 60/20/20 or 50/30/20 split, incorporating alternative assets, may make a portfolio less sensitive to public market short-term swings.
Real estate, private equity, venture capital, digital assets, precious metals and collectibles are among the asset classes deemed “alternative investments.” Broadly speaking, such investments tend to be less connected to public equity, and thus offer potential for diversification. Of course, like traditional investments, it is important to remember that alternatives also entail a degree of risk.
In some cases, this risk can be greater than that of traditional investments.
This is why these asset classes were traditionally accessible only to an exclusive base of wealthy individuals and institutional investors buying in at very high minimums — often between $500,000 and $1 million. These people were considered to be more capable of weathering losses of that magnitude, should the investments underperform.
However, Yieldstreet has opened a number of carefully curated alternative investment strategies to all investors. While the risk is still there, the company offers help in capitalizing on areas such as real estate, legal finance, art finance and structured notes — as well as a wide range of other unique alternative investments.
This article seeks to underscore the importance of planning for one’s retirement. Effective planning requires education, which can empower individuals to makes informed retirement decisions, including about investments. The above books should help.
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.