Investors, shell-shocked by the "Great Recession" of 2008-2009, are looking for answers, for something fresher than the old 'buy-and-hold' mantra. They hunger for stability, yet yearn for growth to rejuvenate their battered portfolios.
Ray Lucia's The Buckets of Money Retirement Solution: The Ultimate Guide to Income for Life provides just that—a reassuring and scientifically proven strategy that gives investors both growth and income.
Lucia, a Certified Financial Planner who's helped thousands of people invest more than $2 billion, explains how to spend down 'safe' buckets (containing, for example, Treasuries, CDs, bonds), while leaving a riskier bucket (real estate, stocks and alternative investments) to grow long-term. This strategy shields investors from the short-term ups and downs of the market. And it gives them the courage and discipline to stay invested no matter what the future holds.
Written in a breezy, accessible style and loaded with tons of examples and clear, specific calculations, the book explains how to set your financial goals, divvy up your money accordingly, and then invest intelligently. With this book as your guide, readers will learn how to achieve both income and growth while at the same time reducing risk. "All in all," Lucia writes, "this plan is akin to a sports car that seats six, approximating the best of both worlds. In this case by being a conservative strategy that's also growth-oriented."
Almost every kind of investment—stocks, bonds, commodities, real estate—plunged in the past year or two, turning off millions of investors who'd been planning for and counting on a reasonably comfortable retirement. These retirees or near-retirees need solutions...something fresher than the old 'buy-and-hold' mantra. Yet here's what they hear from the financial-services industry: Set up an asset-allocation model, then take a systematic withdrawal to support your retirement...remembering, of course, to rebalance the accounts to remain in sync with the model. Wrong! That maximizes the advisors' fees but doesn't protect the investors' assets during the tough times.
Table of Contents
- Introduction: let'S GET YOUR FUTURE BACK ON TRACK
I. REGAIN YOUR BALANCE
- 1. Adapt to the Changing Landscape
- 2. Prepare for Whatever the Future Holds
II. FORGE A NEW PLAN
- 3. Grasp the Buckets of Money Concept
4. Choose the Proper Investments
4.1. Bucket 1: The Income Bucket
- 4.1.1. Sub-Bucket 1A : The Lifetime-Income Category
- 4.1.2. Sub-Bucket 1B: The Fixed-Income Category
- 4.2. Bucket 2: The Relative Safety Bucket, Mid-Term Investments
- 4.3. Bucket 3: The Growth Bucket, Long-Term Investments
- 4.4. A Final Word
- 4.1. Bucket 1: The Income Bucket
5. Execute the Buckets of Money Strategy
- 5.1. First, Check Goals
- 5.2. Art and Science
- 5.3. Filling the Buckets
- 5.4. Bucket 1
- 5.5. Bucket 3A
- 5.6. Planning for Inflation
- 5.7. Bucket 3B
- 5.8. The Bottom Line
- 5.9. The Fate of the Heirs
- 5.10. Another Scenario
- 5.11. How Much Risk?
- 5.12. How to Allocate
- 5.13. The Importance of Bucketizing Now
- 5.14. A Final Word
III. REFINE THE PLAN
6. Take Another Look at Annuities
- 6.1. What's an Annuity?
- 6.2. Predicting the Future
- 6.3. Good Evidence
- 6.4. What Academia Says
- 6.5. Recovery Strategy
- 6.6. Risks and Opportunities
- 6.7. A Final Word
7. See What REITs Can Do for You
- 7.1. What Exactly Is a REIT?
- 7.2. Combining the Best Features
- 7.3. Public versus Nontraded REITS
- 7.4. Another Advantage
- 7.5. The Lowdown on Loads
- 7.6. Are All REITs Low-Leveraged?
- 7.7. What Kinds of Properties Are Best?
- 7.8. Differs from Homes
- 7.9. The Role of REITs in a Portfolio
- 7.10. What Should You Look For?
- 7.11. Getting Help
- 7.12. My Personal Bias
- 7.13. A Final Word
8. Play It Smart When It Comes to Personally Owned Real Estate
8.1. Your Home and Your Future
- 8.1.1. Is It Affordable?
- 8.1.2. Risk Awareness
- 8.1.3. Making the Most of Equity
- 8.1.4. A Fan of Flexibility
- 8.1.5. Think It Through
- 8.2. Buying Other Real Estate
- 8.3. A Final Word
- 8.1. Your Home and Your Future
- 9. Give Uncle Sam His Fair Share—But No More
- 6. Take Another Look at Annuities
IV. LIVE HAPPILY EVER AFTER
10. Craft a Workable Withdrawal Strategy
- 10.1. Beware of Averages
- 10.2. Pitfalls Abound
- 10.3. Getting Set Up
- 10.4. Drawing Down Your Total Retirement Resources
- 10.5. Keeping Taxes Low
- 10.6. A Few More Thoughts about Stocks
- 10.7. A Final Word
- 10. Craft a Workable Withdrawal Strategy
- Epilogue: KEEP YOUR EYE ON ENJOYMENT
- About the Authors
- Recommended Resources
- Title: The Buckets of Money® Retirement Solution: The Ultimate Guide to Income for Life
- Release date: August 2010
- Publisher(s): Wiley
- ISBN: 9780470581575