The Buckets of Money Retirement Solution The Ultimate Guide to Income for Life

by Lucia, Raymond J.; Stein, Ben

• ISBN13: 9780470581575
• ISBN10: 0470581573
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-08-09
• Publisher: Wiley

Summary

Many people head into retirement assuming they will have enough money to live on for the rest of their lives. But when issues such economic disaster come into play, their financial cushion can become so thin that they may have to cut back drastically on their standard of living or go back to work just to survive. Don't let this happen to you!It's time to discard the old strategies and get a new one. Protect Your Buckets of Money provides you with the tips and tools to adapt to the changing landscape and find long-term financial stability.In an easy-to-understand and accessible style, Lucia outlines his proven "Buckets of Money" technique. The concept behind Buckets of Money is amazingly simple. You match your assets to your liabilities. If you need income today, that's a short-term liability (Bucket No. 1) that requires short-term assets, such as CDs and Treasury Bills. If you want inflation-indexed income tomorrow, that's a mid-term liability requiring a match of mid-term assets, such as bonds and certain kinds of annuities, in Bucket No. 2. If you want your money to grow over the long run, that's a long-term liability to be funded with long-term assets, such as stocks and real estate, in Bucket No. 3.To win at the retirement game, you need to know your financial goals, divvy up your money accordingly, and then invest intelligently. With this book as your guide, you'll learn how to achieve both income and growth, while reducing risk.

Author Biography

RAYMOND J. LUCIA is one of the nation's leading authorities on financial, tax, and retirement planning. Over the course of his 36-year career in the financial services industry, Lucia, a Certified Financial Planner, has helped thousands of people invest more than $2 billion using his renowned Buckets of Money retirement strategy. Registered Rep. magazine named Lucia one of the "10 Best Brokers in America." Lucia is the host of the nationally syndicated Ray Lucia Show on Business TalkRadio Network, and is a frequent guest on Fox News, Fox Business, CNBC, and the Today show. He is also a local business editor on TV stations in his hometown of San Diego.

DALE FETHERLING has written or coauthored more than fifteen nonfiction books, and has also taught writing and editing at five colleges and universities.

Table of Contents

Foreword	p. xi
Acknowledgments	p. xv
Introduction	p. xvii
Regain Your Balance
Adapt to the Changing Landscape	p. 3
The End of Easy	p. 3
The Lessons	p. 9
A Final Word	p. 10
Prepare for Whatever the Future Holds	p. 11
Rebuild Your Savings	p. 12
Rethink Your Retirement Years	p. 17
Retool Your Retirement Savings Plans	p. 23
Reinvent Your Strategy	p. 26
A Final Word	p. 28
Forge a New Plan
Grasp the Buckets of Money Concept	p. 33
Put Time on Your Side	p. 34
Other Risks	p. 35
Wall Street's Answer	p. 38
Flawed Analyses	p. 40
Main Street's Myopia	p. 41
"Reverse Dollar-Cost Averaging"	p. 42
Proper Allocation	p. 44
Proper Location	p. 45
A Final Word	p. 47
Choose the Proper Investments	p. 49
Bucket 1: The Income Bucket	p. 49
Bucket 2: The Relative Safety Bucket, Mid-Term Investments	p. 58
Bucket 3: The Growth Bucket, Long-Term Investments	p. 68
A Final Word	p. 76
Execute the Buckets of Money Strategy	p. 77
First, Check Goals	p. 77
Art and Science	p. 78
Filling the Buckets	p. 79
Bucket 1	p. 80
Bucket 3A	p. 81
Planning for Inflation	p. 82
Bucket 3B	p. 83
The Bottom Line	p. 85
The Fate of the Heirs	p. 85
Another Scenario	p. 86
How Much Risk?	p. 87
How to Allocate	p. 88
The Importance of Bucketizing Now	p. 89
A Final Word	p. 90
Refine the Plan
Take Another Look at Annuities	p. 93
What's an Annuity?	p. 93
Predicting the Future	p. 102
Good Evidence	p. 102
What Academia Says	p. 103
Recovery Strategy	p. 104
Risks and Opportunities	p. 105
A Final Word	p. 106
See What Reits Can Do for You	p. 109
What Exactly is a Reit?	p. 110
Combining the Best Features	p. 110
Public versus Nontraded Reits	p. 113
Another Advantage	p. 114
The Lowdown on Loads	p. 116
Are All Reits Low-Leveraged?	p. 118
What Kinds of Properties Are Best?	p. 120
Differs from Homes	p. 124
The Role of Reits in a Portfolio	p. 124
What Should You Look For?	p. 125
Getting Help	p. 128
My Personal Bias	p. 129
A Final Word	p. 131
Play it Smart When it Comes to Personally Owned Real Estate	p. 133
Your Home and Your Future	p. 133
Buying Other Real Estate	p. 147
A Final Word	p. 153
Give Uncle Sam His Fair Share-But No More	p. 155
Tax-Free Municipal Bonds	p. 156
Tax Management of Stock Portfolios	p. 157
Real Estate	p. 157
Roth Conversion	p. 159
Incorporating Your Business	p. 162
Tax-Credit Investing	p. 164
Choosing Smart Location of Assets	p. 166
A Final Word	p. 168
Live Happily Ever After
Craft a Workable Withdrawal Strategy	p. 173
Beware of Averages	p. 174
Pitfalls Abound	p. 176
Getting Set Up	p. 177
Drawing Down Your Total Retirement Resources	p. 179
Keeping Taxes Low	p. 183
A Few More Thoughts about Stocks	p. 187
A Final Word	p. 191
Epilogue: Keep Your Eye on Enjoyment	p. 193
About the Authors	p. 197
Recommended Resources	p. 199
Index	p. 203
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