The New Retirement [Hardcover]

I've read several books on retirement planning and they all take one page worth of information and stretch it into a full length book. This book is different in that the information is accessible, concise and easy to find. The first half of the book reviews current demographics of the G8 countries and the economic implications, which made for fascinating but not essential reading. The remainder of the book gets down to the nitty-gritty of how much money you need and when you can safely retire. The "20-25 rule" is a great formula and something you can actually hang your hat on. If you are looking for answers to "how much?" and "when?" this is the only book you need.

For the most part, Sherry Cooper, investment vice-president for BMO, offers some helpful tips on how this wave of retiring baby boomers can preparing for the next thirty years of their lives. In her demographic analysis, Cooper repeatedly points to the late boomers (those born between 1955 and 1964) having not faired as well as their earlier counterparts, the early boomers. A freezing of some private pensions, divorce settlements, and economic downturns in the 80s and beyond have all contributed to a declining disposable income within this later group. Cooper then proceeds to lay out a number of strategies that will help a late baby boomerplan for retirement within the next decade. The book is full of formulas and figures that would have retiring Canadians looking at saving as much as 22X normal pre-tax income during their working life in order to retire at a similar standard of living. Well, we all know what a fanciful notion that is: Canadians, just like their American cousins, are not savers, and over a third can't even save 5X. That is why more and more Canadians are opting to stay in the workforce beyond their minimum retirement. It's when Cooper says that new retirees should look at getting as much as 5% on their investment portfolio during their retirement years to keep their savings intact that I smell a rat. The only place where you can get that kind of return right now is in the stock market and that is precisely where Cooper would like to see baby boomers put a hefty portion of their nest egg. That is a bit of departure from the conventional advice that would have my generation park their money in safe and security GICs and annuities. According to her, these two instruments won't cut it because they can't keep up with the rate of inflation. Your money will run out before twenty years. Her recommendations are, of course, biased because of her line of work. However, I see something important emerging in her counsels: like Jeff Rubins for Imperial Bank of Commerce, Cooper is fearful that an aging Canadian society is turning away from investing in the stock market because it is too risky, given the most recent developments with subprime mortgage defaults. Nowhere does she have any strategy for retirees handling rising inflation. That's one baffles even the big boys in Washington: how to grow your retirement portfolio in a climate of rising prices and shrinking currency value , which is where we are now. Overall, she raises enough valid points to get a person like me thinking about when and how I want to enter my retirement years. For the time being, however, I'll hold on to my decent paying job and benefits package.

Finally a book that is very easy to read and understand and not just for boomers, but for everyone, including young adults. As Dr. Cooper said, "Healthy older brains are better at dealing with complex situations that you have dealt with for many years, having the benefit of so much experience. Emotions can be more easily controlled, and the opportunity to feel joy and have peace of mind is greater than at any other time in our lives." This book is very positive and will change the way you think about retirement and to enjoy the last chapters of your life. It is a definite must read for everyone.