Our research indicates that 80% of investors recognize that they are not saving enough for retirement or are unsure of how much they need to save to meet their future spending needs
Sacramento, Calif. (PRWEB) November 29, 2005 –
With the odds of a lightning strike at 1-in-83,930, most people are waiting for one to light a fire and put them into action; to develop a prudent retirement plan.
For example, with the Social Security debate being delayed later and later and knowing that benefits are likely to be reduced, the sooner one adjusts and saves more the better. Look at it this way, whether a personal account inside Social Security invested in the markets, or a personal finance approach, investing directly in the market; either means putting more away to make up the difference. The sooner one starts on a retirement plan, the better. It takes less each month when people give money more time to grow. There’s no need to wait and then rush to put out that fire. You know it is coming, so start now and save more.
"Our research indicates that 80% of investors recognize that they are not saving enough for retirement or are unsure of how much they need to save to meet their future spending needs," said James Norris, Principal, Vanguard Integrated Retirement Plan Solutions. People do not know how to determine a retirement plan aimed at seeing how much they need to sustain their lifestyle.
In Wealth Odyssey Larry R. Frank presents an easy to follow personal finance method for finding out not only when people can retire, but also how much money they'll need in order to retire with. Will it be retirement at 60 or 70; or, the golden years under the golden arches?
First, Frank suggests people determine their Standard of Individual Living (SOIL) today. This is how much money needed to maintain their current lifestyle. Subtract only retirement plan savings contributions, income and payroll taxes from gross income. This gives people their retirement standard of individual living. Then think about the personal finance income sources – Social Security, pension, current savings – available to maintain the current standard of individual living into retirement years. Chances are there will be a significant gap between retirement income sources and expenses.
Next, apply the “Wealth Rule” to this income gap – the unfunded retirement plan expenses. The wealth rule suggests thinking of the value of one’s assets as an income stream used to bridge the gap between retirement income and expenses. In effect, assets bridge the gap between what is on hand and what one needs.
How much income will people need from their personal finance to maintain their current standard of living into retirement? When will people have collected the assets they need to retire? Answers to these questions determine when a person can finally retire. This establishes a personal retirement benchmark more relevant than impersonal market benchmarks.
If this simple formula (or the very thought of a retirement plan) makes the head spin, read Frank's book. Frank addresses not only retirement planning, but also broader issues in planning personal finance. Throughout the book, Frank encourages readers to focus on wealth, not income. In the 21st Century, it's not what someone makes, but what he or she is worth. In fact, what one spends makes everyone else wealthy. Someone with a high income and a lavish lifestyle will wind up poor in retirement if they don't plan for it since the high standard of individual living is unsustainable.
Finally, the above methodology does not require switching one’s thinking between the accumulation years and the distribution years. The same personal finance benchmark method of measurement – SOIL – is used between the two phases of retirement planning. The methodology also provides valuable insight into the effects on a retirement plan of bad markets, changing pensions, even changing Social Security.
Wealth Odyssey has been nominated for the 2006 Benjamin Franklin Awards, 2006 Financial Frontiers Awards; 2006 Independent Publisher Book Awards; ForeWord Magazine Book of the Year; Writers' Digest 13th Annual Self-Published Book Awards; Jada Press in their Third Annual Book of the Year Awards; and Writers' Notes Magazine Book of the Year; all in personal finance, business and economics categories.
If someone is looking for an inexpensive gift for the holidays, Wealth Odyssey is a great stocking stuffer. The book is available online at all major book stores or by special order at your favorite bricks and mortar bookstore. “Wealth Odyssey” shows people how to light the fire, get them into action, and control it properly.
About Larry R. Frank Sr.
Larry R. Frank Sr., MBA, CFP® has twenty-seven years of financial research and real-life experiences teaching people personal finance. Frank focuses on how to make smart decisions to grow and protect net worth -- a simple change in perspective from income-centric to wealth, or net-worth-centric. Rather than make things complicated, his work has been focused around simplifying the complexities of prioritizing simultaneous financial issues and related calculations in creating a retirement plan. He holds a Bachelor of Science cum laude in physics and an MBA in finance. He has appeared in Nationally Syndicated Articles and on Nationally Syndicated Radio. Frank resides in Rocklin, CA.
Wealth Odyssey (ISBN 0-595-33720-1, trade paper, $16.95) an "Editor's Choice," is available from iUniverse, Inc., http://www.BarnesandNoble.com , http://www.Borders.com , http://www.Amazon.com or http://www.iUniverse.com . Independent book store distribution available through Ingram Book Group and Baker & Taylor.
Media kit, facts, examples, and additional story support is available at http://www.WealthOdyssey.com .
Online peek available at http://books.iuniverse.com/viewbooks.asp?isbn=0595337201&page=fm1
Larry R. Frank Sr., MBA, CFP®
Phone: (916) 773-3509
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