The New Rules of Retirement: Strategies for a Secure Future [Hardcover]

Robert C. Carlson (Author)

Book Description

Publication Date: November 5, 2004

Praise for THE NEW RULES OF RETIREMENT

"As a Wharton graduate, money manager, Chief Financial Officer, and Certified Financial Analyst, I didn't think I needed help in making investment choices and planning for my retirement. I was wrong. I have been a subscriber to Retirement Watch since 1997. I trust Bob Carlson completely and follow his investment, tax, and planning advice personally."
--Sandy Kagan, CFA
CFO Partner, Tatum Partners

"A clear, practical, and wisely unconventional guide to the new world of retirement."
--Humberto Cruz
Nationally syndicated financial columnist, Tribune Media Services

"Bob Carlson does a magnificent job preparing readers for the many challenging issues they will face over the next several decades. Retirees can no longer count on generous asset returns and employer-provided defined benefit plans. Bob provides readers with creative approaches for contending with these challenges to help ensure financially and emotionally secure 'freedom years'."
--Lawrence E. Kochard, PhD, CFA
Chief Investment Officer, Georgetown University

"Bob Carlson shows that three trends--demographics (baby boomers), increasing longevity, and fewer offspring--have changed forever the landscape facing America's retirees. Stereotype retirement based on Social Security and employer pensions is out; making ends meet on your own is in. Better get yourself ready--and you can do so by reading this book."
--James C. Miller III
Former U.S. Budget Director, Chairman of The CapAnalysis Group, LLC

Editorial Reviews

From the Inside Flap

Retirement is an opportunity to do the things you could never find the time for while you were working. It's a chance to plan how you really want to spend the rest of your life. But to take advantage of retirement opportunities, you have to plan and prepare. Most of all, you need to know the new rules of retirement planning.

Today, an unstoppable force known as the Age Wave is transforming the face of retirement. This wave, which is fueled by a historically large generation that is past midlife; longer life expectancy; and a low population replacement rate, will threaten the safety and comfort of your retirement—unless you adapt to the changes brought about by these new trends.

In The New Rules of Retirement, nationally recognized retirement expert Robert Carlson will show you how to incorporate the Age Wave into your retirement planning process and teach you proven, profitable, and unique strategies for achieving a financially secure retirement. He'll explain why you should be prepared to save more than past retirees have and how to use the new rules for investing. He'll also reveal why you might not receive as much help from Social Security, Medicare, and your former employer as you might think.

Filled with in-depth insight and practical advice, The New Rules of Retirement:

• Explores the financial concerns of retirees and preretirees and how they are affected by certain trends
• Examines how to estimate retirement spending and how much money should be accumulated for retirement
• Discusses health care options and how to pay for long-term care
• Reveals how to invest before and during retirement
• Illustrates how to plan an estate, cut taxes, and provide for loved ones
• Manage your IRA more effectively

You can have the retirement you desire. But you must act now to stay ahead of the rapid changes that are taking place. Even if you're currently retired, you should continue to plan and prepare. With The New Rules of Retirement as your guide, you'll learn how to live life to the fullest in the new world of retirement.

From the Back Cover

Praise for THE NEW RULES OF RETIREMENT

"As a Wharton graduate, money manager, Chief Financial Officer, and Certified Financial Analyst, I didn't think I needed help in making investment choices and planning for my retirement. I was wrong. I have been a subscriber to Retirement Watch since 1997. I trust Bob Carlson completely and follow his investment, tax, and planning advice personally."
—Sandy Kagan, CFA
CFO Partner, Tatum Partners

"A clear, practical, and wisely unconventional guide to the new world of retirement."
—Humberto Cruz
Nationally syndicated financial columnist, Tribune Media Services

"Bob Carlson does a magnificent job preparing readers for the many challenging issues they will face over the next several decades. Retirees can no longer count on generous asset returns and employer-provided defined benefit plans. Bob provides readers with creative approaches for contending with these challenges to help ensure financially and emotionally secure 'freedom years'."
—Lawrence E. Kochard, PhD, CFA
Chief Investment Officer, Georgetown University

"Bob Carlson shows that three trends—demographics (baby boomers), increasing longevity, and fewer offspring—have changed forever the landscape facing America's retirees. Stereotype retirement based on Social Security and employer pensions is out; making ends meet on your own is in. Better get yourself ready—and you can do so by reading this book."
—James C. Miller III
Former U.S. Budget Director, Chairman of The CapAnalysis Group, LLC

See all Editorial Reviews

Product Details

• Hardcover: 288 pages
• Publisher: Wiley; 1 edition (November 5, 2004)
• Language: English
• ISBN-10: 0471683469
• ISBN-13: 978-0471683469
• Product Dimensions: 6.3 x 1.1 x 9.3 inches
• Shipping Weight: 10.4 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (8 customer reviews)
• Amazon Best Sellers Rank: #308,602 in Books (See Top 100 in Books)

More About the Author

Robert C. Carlson is editor of the monthly newsletter and web site, Retirement Watch. Carlson is Chairman of the Board of Trustees of the Fairfax County Employees' Retirement System, which has over $2.3 billion in assets, and was a member of the Board of Trustees of the Virginia Retirement System, which oversaw $42 billion in assets, from 2001-2005.

His latest book is Personal Finance for Seniors for Dummies, published by John Wiley & Co. in 2010 (with Eric Tyson). Previous books include Invest Like a Fox...Not Like a Hedgehog, published by John Wiley & Co. in 2007, and The New Rules of Retirement, as published by John Wiley & Co. in the fall of 2004.

He has written numerous other books and reports, including Tax Wise Money Strategies, Retirement Tax Guide, How to Slash Your Mutual Fund Taxes, Bob Carlson's Estate Planning Files, and 199 Loopholes That Survived tax Reform. He also has been interviewed by or quoted in numerous publications, including The Wall Street Journal, Reader's Digest, Barron's, AARP Bulletin, Money, Worth, Kiplinger's Personal Finance, the Washington Post, and many others. He has appeared on national television and on a number of radio programs. He is past editor of Tax Wise Money.

Carlson is an attorney. He received his J.D. and an M.S. (Accounting) from the University of Virginia and received his B.S. (Financial Management) from Clemson University and passed the CPA Exam. He also is an instrument rated private pilot. He is listed in several recent editions of Who's Who in America and Who's Who in the World.

Customer Reviews

Most Helpful Customer Reviews

78 of 78 people found the following review helpful:

5.0 out of 5 stars Carlson is up to date!, January 7, 2005

By 

Judith Ewell (Williamsburg, VA, USA) - See all my reviews
(REAL NAME)   

This review is from: The New Rules of Retirement: Strategies for a Secure Future (Hardcover)

As someone who has recently retired, I have read a number of books and magazine articles on financial issues in retirement, and I have consulted a financial planner. Now I find that much of what I was seeking in a number of different places can be found in Bob Carlson's new book on retirement. He does an excellent job of describing the effect that baby boomer retirement will have on many different financial areas.His advice also considers a number of different options (for example, on where and whether one might relocate during retirement), so he does not advocate a "one size fits all" pattern for what he calls the "retirement process." His investment advice is sound on constructing a simple core portfolio before thinking of adding a managed portfolio or an aggressive portfolio. He is critical of some of the classic advice for retirees to transfer most of their investments to bonds for safety; that advice, he notes, was fine for the times in which retirees might expect to live in retirement for about five years, rather than the 20 to 30 years that is more typical today. In short, Carlson discusses and considers much of the traditional advice for retirees and then evaluates that advice in view of current demographic trends. Most people planning to retire or planning in advance for retirement can benefit from this book.

68 of 69 people found the following review helpful:

5.0 out of 5 stars Just what you need to understand what you face...solid, February 23, 2005

By 

James Kerr "James" (Virginia) - See all my reviews

Amazon Verified Purchase

This review is from: The New Rules of Retirement: Strategies for a Secure Future (Hardcover)

If you only read one sentence,let me say this -- this book is a straightforward description of what anyone needs to think about when investing in the new environment, and it isn't a gimmick book with a quick answer.

This book is clear, solid, thorough and sensible on what faces investors today, whether you are in retirement or planning for retirement. The environment is different now -- we live longer, interest rates are lower, the stock market will see ups and downs, and most of us don't have adequate pension plans -- and Carlson clearly explains why the simple rules of thumb and simple strategies from the past just don't fit anymore. For example, he is persuasive in laying out why index investing is not appropriate for many investors. Also, he makes it clear you need to make your own retirement spending budget, not rely on rules of thumb. He also discusses the risk of "buy and hold" strategies. In short, the background to make your critical decisions -- whether about investing, what type of IRAs, annuities, or health care -- is all here.

A final note -- personally, I like the tone of this book. It's very clear and very informative, but it is not a gimmick book oversimplifying things, which is good, because investment and planning for retirement is a serious topic.

24 of 25 people found the following review helpful:

5.0 out of 5 stars Agree with 90% of the recommendations, September 23, 2007

By 

Dale C. Maley "Index Fund Investor" (Fairbury, IL United States) - See all my reviews
(VINE VOICE)    (REAL NAME)   

Amazon Verified Purchase

This review is from: The New Rules of Retirement: Strategies for a Secure Future (Hardcover)

Over-all, this is a very thorough review of the rules of retirement.

I am a believer in the passive index fund approach to investing as opposed to the actively managed approach.

Carlson advocates 3 levels of investments for the accumulation phase, and all 3 are based on an active versus passive management approach. The first level is his Core level and he recommends actively managed value stock funds.....or actively managed balanced funds (stocks and bonds) like Vanguard's Wellington. I think most investors would be better
served using a combination of Vanguard's Total Stock Market and Total Bond Market funds for this core portfolio. The ratio of stocks to bonds depends on the investor's risk tolerance, as well as their need to take risk. Using Vanguard's passively managed index funds versus Carlson's actively managed approach should result in higher returns to the investor because of the lower annual expenses of the index funds.

Carlson recommends large cap value funds because his theory is that in retirement....retirees can give up some returns in exchange for lower chances in the portfolio declining with value stocks. The Fama-French 3 factor study would suggest that large cap value stocks will outperform all large cap stocks....if history repeats itself in the future. If you believe that history will repeat itself, you could choose a Vanguard large cap value index fund instead of the Total Stock Market fund.

Carlson's other 2 levels of portfolios focus on trying to pick in advance, which asset classes are currently not over-valued.....or be really aggressive and take on high risks with private equity funds. These two strategies are high risk and I know of no long term data which supports this approach performing better than a simple index fund approach. I don't believe either of these 2 strategies is appropriate for most investors.

Bengen's and Bierwirth's studies back in 1994 were seminal events in financial planning in that they found 4% was the maximum SWR (Safe Withdrawal Rate). If the stock market experiences a prolonged drop early in a retirement period, SWR's higher than 4% will cause the retiree to exhaust his portfolio before this death.

In 1998, the Trinity Study also found the same basic results as Bengen and Bierwirth.....and recommended a maximum SWR of 4%.

I have read about some mechanical rules which suggest that you can withdraw more than 4% if you spend less money in years the stock market is down, and more money when it is up. Carlson suggests the Yale distribution rule....in which 30% of the annual distribution is based upon portfolio value. I had not heard of this specific rule before, and I will have to do some Monte Carlo analysis to determine its effectiveness.


I found the book easy to read.....and I agree with his recommendations except for the construction of his investment portfolios.

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