Christine Benz, a personal finance and retirement planning expert, has released a new book titled “How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement.” The book offers valuable insights for those approaching retirement and those already retired. One major takeaway is the importance of monitoring and adjusting your portfolio withdrawals. Benz emphasizes the need for annual reviews to ensure that withdrawal rates remain sustainable.
This flexibility allows retirees to adjust their spending based on their portfolio performance. Benz also delves into retirement portfolio construction, highlighting key strategies shared by various experts. Bill Bernstein discusses the significance of asset allocation and inflation protection, advising the use of Treasury Inflation-Protected Securities (TIPS) for securing essential living expenses.
J.L. Collins suggests simplifying portfolios by minimizing holdings and focusing on total market index funds combined with some cash reserves.
Retirement planning insights from Benz’s book
This minimalist approach can reduce complexity, making portfolio management more straightforward, especially as retirees age.
Mark Miller offers practical advice on housing, viewing retirement as a series of phases. He encourages preemptive thinking about long-term living arrangements, advising retirees to consider not just their current state but the future needs of their aging selves. One of the book’s most poignant chapters is the discussion with Cameron Huddleston on the importance of sharing financial information with loved ones.
Huddleston stresses the need for clear communication and thorough organization. This includes setting up a comprehensive estate plan to prevent loved ones from facing a disorganized financial situation in the future. Benz’s book serves as a comprehensive guide for those nearing or already in retirement.
It provides actionable advice on managing spending, simplifying portfolios, planning for future housing needs, and preparing a financial plan that ensures loved ones are well-informed.
