Retire Happy: What You Can Do Now to Guarantee a Great Retirement (USA TODAY Nolo Series)

266 Pages·2008·3.92 MB·English

by  Richard Stim

Th e
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Happy
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GGuuaarraanntteeee aa GGrreeaatt RReettiirreemmeenntt
by Richard Stim & Ralph Warner
First Edition FEbruary 2008
Editor Ilona bray
Cover & book Design SuSan PuTnEy
Proofreading robErT wEllS
Index EllEn ShErron
Printing DElTa PrInTIng SoluTIonS, InC.
uSa ToDay ConTrIbuTorS
book Editor bEn nuSSbaum
Contributing Editors JIm hEnDErSon, FrED monyak,
anD gErI TuCkEr
Special thanks to JulIE SnIDEr
warner, ralph E.
retire happy : what you can do now to guarantee a great retirement / by richard
Stim and ralph warner.
p. cm.
Includes bibliographical references and index.
ISbn-13: 978-1-4133-0835-8 (pbk. : alk. paper)
ISbn-10: 1-4133-0835-X (pbk. : alk. paper)
1. retirement--Planning. I. Stim, richard. II. Title.
hQ1062.w373 2008
646.7'9--dc22
2007035631
Copyright © 2008 by nolo. all rIghTS rESErvED. PrInTED In ThE u.S.a.
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Acknowledgments
bringing the voices of actual retirees into this book was a top priority
for us. Still, we could never have imagined the different ways in
which we would be inspired, educated, and surprised by their stories.
accordingly, we’d like to thank Ernest Callenbach, afton Crooks, rod
Duncan, bernie and bob giusti, amy Ihara, Stan Jacobsen, arthur
levenson, babette marks, henry and althea Perry, hazel Peterson, yuri
Shibata, Cecil Stewart, Carol Thompson, and Peter wolford.
many thanks also to our editors, Ilona bray (at nolo) and benjamin
nussbaum (at uSa ToDay). and this book would be only a stack
of paper were it not for nolo’s production and design team, including
Jaleh Doane and Susan Putney.
About the Authors
Richard Stim is an attorney and nolo editor and author who lives in San
Francisco. his books include Wow! I’m in Business: A Crash Course in
Business Basics, Music Law: How to Run Your Band’s Business, and Getting
Permission: How to License & Clear Copyrighted Materials Online & Off.
Ralph (Jake) Warner is an attorney, a widely recognized pioneer of the
do-it-yourself law movement, and a popular speaker on retirement
topics. after cofounding nolo in 1972 and running the company for
much of the past three decades, Jake tried retirement for three years—
during which time he embarked on a new business venture, TallTales
audio, which produces audio books for children. Today he’s back at
nolo, serving as chief executive officer. Jake has also authored or
coauthored many books, such as How to Run a Thriving Business and
How to Buy a House in California.

Table of Contents
I Will You Really Retire? 1
1 Start Your Planning (and Dreaming) Now 3
The Four Things You Need in Retirement 5
Look Outward and Inward 13
2 Invest in Your Health 19
Four Conditions You Should Treat Now 20
Exercise and Diet 33
Three More Tips 41
3 Strengthen Family Ties 47
How Strong Are Your Family Ties? 49
Five Ways to Improve Family Function 50
Couples Power: The Tie That Binds 62
If One Spouse Retires Before the Other 64
4 Appreciate Friends, Old and New 67
Friends: Many Concepts—One Goal 69
Four Paths to Friendship 70
Members of Couples: Find Friends Who Are Yours Alone 78
Those Furry Friends 80
5 Develop Lifelong Interests and Activities Now 83
Volunteer 84
Do the Things You Always Meant To 93
Educate Yourself 94
6 Figure Out Your Number 99
Using Online Retirement Calculators 100
The Choices and Variables Underlying Your Number 102
A Do-It-Yourself Retirement Calculator 107
7 Convert Debt Into Retirement Savings 115
Can You Avoid Car Payments? 117
Heading Into Retirement With Credit Card Debt? 119
Should You Prepay Your Mortgage? 127
8 Where Will the Money Come From? 133
It’s Not Too Late to Begin 134
What to Expect From Social Security 137
Employer Pension Plans 148
Individual Retirement Savings Plans: IRAs and 401(k)s 151
Withdrawing Money From Your 401(k), IRA, or Annuity 159
Savings and Investments 164
Inheritances and Gifts 164
Early Retirement Incentives and Buyouts 169
Reverse Mortgages 170
Immediate-Fixed Annuities 173
9 Growing and Protecting Retirement Assets 177
The Safe Withdrawal Approach 178
What Are Your Investment Choices? 184
Cash: Lowest Risk, Low Returns 184
Bonds: Low to Moderate Risk, Low to Moderate Returns 186
Individual Stocks: High Risk, Varying Returns 188
Mutual Funds: Varying Risks, Varying Returns 190
Making Choices, and Sticking by (Some of) Them 198
Investing in and Profiting From Real Estate 201
Getting Help: Financial Planners, Advisers, and Brokers 204
10 Working After Retirement 209
Start Planning Now 211
Whether to Work and Collect Social Security 221
Legal Rules Protecting Older Workers 222
Index 224