Financial and leading retirement experts such as Ed Slott, believe the latest publication from Wade Pfau is the most comprehensive and well-written personal financial guide ever published. And should be on the shelves of every financial planner & individual serious about their financial planning.
450 pages of specific detailed information unseen in any singular publication before it. That said, we wouldn’t recommend the guide to individuals who aren’t willing to devote the time to review the planning options presented and apply them to their own personal situation.
Acting as a caretaker for a loved one has lit a fire within me to ensure my potential future needs and that of my bride are in order. This book discusses every facet of relevant issues we all will face such as, retirement risks, quantifying goals and assessing preparedness, sustainable spending from investments, annuities and risk pooling, Social Security, Medicare and health insurance, long-term care planning, housing decisions, tax planning, legacy and incapacity planning, and non-financial aspects.
Each chapter covers these subjects in detail and concludes with an action plan. Also included are sources for further study. I have used many of these sources and believe they are very reliable.
In the first chapter, Pfau offers readers the option to fill out a questionnaire and receive a free profile report that will help identify their retirement income style. You can do this prior to obtaining the book — visit www.risaprofile.com/guidebook. You can fill in the questionnaire and obtain your profile without cost or obligation.
After you fill out the questionnaire, you will receive feedback regarding your retirement income style. I did so and received feedback quickly, which I found useful and accurate.
Here is a brief rundown of some of the material covered:
- Retirement risks: This chapter explains risk associated with longevity, market and sequence-of-return, fixed income, stocks, lifetime sequence-of-return, financial elder abuse and other important risks.
- Quantifying goals and assessing preparedness: This chapter will help you determine whether you are on the financial track that will lead to a successful retirement — for example, whether you have sufficient assets to meet anticipated retirement liabilities. It offers guidance in establishing a retirement budget and goals, as well as reviewing your expected assets and liabilities throughout retirement. The action plan will help you determine if your initial plan is underfunded and, if so, take required steps to develop a course of action to develop a reasonably funded plan.
- Sustainable spending: This chapter examines the 4% rule and why the rule may be too low. Alternatives are presented so you can develop a spending plan that will work for you throughout your retirement.
- Annuities: The focus in this chapter is on immediate and deferred annuities. This chapter will be very useful to readers regarding how they might fit into your retirement plan.
- Social Security: This chapter is helpful in determining when you should apply for benefits. You will be given guidance as to when you should apply before or at full retirement age, or at age 70.
- Medicare and health insurance: This comprehensive chapter includes an action plan you will find very useful. Pfau suggests other sources I have recommended, including Philip Moeller’s book, “Get What’s Yours for Medicare.”
- Long-term care planning: This chapter covers in depth the options for funding long-term care, including self-funding, Medicaid, traditional long-term care insurance and hybrid policies. His discussion of hybrid policies is thorough.
This article was sponsored by HIS Capital Group Fund III
Special thanks to our friend Elliot Raphaelson
