Save Now or Die Trying: Achieving Long-Term Wealth in Your 20s and 30s

189 Pages·2007·0.72 MB·English

by  Mark Bruno

Save Now or
Die Trying
ACHIEVING LONG-TERM WEALTH
IN YOUR 20s AND 30s
Mark Bruno
John Wiley & Sons, Inc.
ffffiirrss..iinndddd iiiiii 88//1111//0077 1111::5566::2299 AAMM
ffffiirrss..iinndddd iiii 88//1111//0077 1111::5566::2299 AAMM
Save Now or
Die Trying
ffffiirrss..iinndddd ii 88//1111//0077 1111::5566::2299 AAMM
ffffiirrss..iinndddd iiii 88//1111//0077 1111::5566::2299 AAMM
Save Now or
Die Trying
ACHIEVING LONG-TERM WEALTH
IN YOUR 20s AND 30s
Mark Bruno
John Wiley & Sons, Inc.
ffffiirrss..iinndddd iiiiii 88//1111//0077 1111::5566::2299 AAMM
Copyright © 2007 by Mark Bruno. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
Wiley Bicentennial Logo: Richard J. Pacifico
No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise, except as permitted under Section 107 or 108 of
the 1976 United States Copyright Act, without either the prior written permission
of the Publisher, or authorization through payment of the appropriate per-copy fee
to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923,
[phone], fax [phone], or on the Web at www.copyright.com. Requests
to the Publisher for permission should be addressed to the Permissions Department,
John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone],
fax [phone], or online at http://www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used
their best efforts in preparing this book, they make no representations or warranties
with respect to the accuracy or completeness of the contents of this book and specifically
disclaim any implied warranties of merchantability or fitness for a particular purpose. No
warranty may be created or extended by sales representatives or written sales materials.
The advice and strategies contained herein may not be suitable for your situation. You
should consult with a professional where appropriate. Neither the publisher nor author
shall be liable for any loss of profit or any other commercial damages, including but not
limited to special, incidental, consequential, or other damages.
For general information on our other products and services or for technical support,
please contact our Customer Care Department within the United States at (800) 762-
2974, outside the United States at [phone] or fax [phone].
Wiley also publishes its books in a variety of electronic formats. Some content that
appears in print may not be available in electronic formats. For more information
about Wiley products, visit our Web site at www.wiley.com.
Library of Congress Cataloging-in-Publication Data
Bruno, Mark.
Save now or die trying: achieving long-term wealth in your 20s and 30s /
Mark Bruno.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-470-12141-2 (cloth)
1. Saving and investment. 2. Savings accounts. I. Title.
HC79.S3B78 2007
332.024'01—dc22
2007009238
Printed in the United States of America.
10 9 8 7 6 5 4 3 2 1
ffffiirrss..iinndddd iivv 88//1111//0077 1111::5566::3300 AAMM
Contents
Preface: Confessions of the Author vii
Acknowledgments ix
Chapter 1 No One Will Reward You for
a Job Well Done 1
Chapter 2 Plan Now, or Die Broke 13
Chapter 3 The Truth, the Whole Truth, and Nothing
But the Truth, So Help Me God:
The Facts by the Numbers 21
Chapter 4 The Self-Proclaimed Freak 29
Chapter 5 Breathing Life into Your Retirement:
The Basics of 401(k)s 35
Chapter 6 Anything But Entry-Level 65
Chapter 7 On Your Own:
Individual Retirement Accounts 71
Chapter 8 Taking the Heat to Stay in His Kitchen 91
Chapter 9 You Are Not on Your Own:
Help Has Arrived. Finally 97
v
ffttoocc..iinndddd vv 88//1111//0077 1111::5577::0022 AAMM
vi Contents
Chapter 10 The Teacher with More to Learn 115
Chapter 11 Dealing with Debt and Fighting Gravity 121
Chapter 12 The Mayor’s Lounge 129
Chapter 13 The Roth 401(k):
The Future of Your Future? 135
Chapter 14 Any Door Will Do 141
Chapter 15 There Is a World of Help Out There 147
Chapter 16 An Afterword 153
Appendix A Save Now or Die Trying:
The Ten Commandments 155
Appendix B Two Steps to a Budget 159
Appendix C Your Seven Rules of Thumb 163
About the Author 165
Endnotes 167
Index 171
ffttoocc..iinndddd vvii 88//1111//0077 1111::5577::0022 AAMM
Preface: Confessions of
the Author
I
have crunched a lot of numbers. And I have crunched a lot of
numbers on top of these numbers.
I ’ve read the research, pontifi cated with the pundits, and extracted
everything I could from the experts.
A nd then along the way I forgot.
I focused on building an argument and then presenting some
basic, yet fundamental solutions to the problem.
I became so completely committed to doing this every day that
I just lost sight.
T his is real.
T his is not some warning on the 6 o’clock news that you may or
may not go blind from eating too much Taco Bell.
T his is about the way we live.
T his is about the way we want to live.
A nd, ultimately, the way we think about how we want to live.
I talked to a lot of really good people who volunteered to let me
peek into their lives and their thoughts. We focused on now and we
talked about later.
B ut I forgot.
T his is not about now, and it is not just about later.
T his is about Always.
M oney doesn’t buy happiness, but being strapped won’t help
your chances.
O ne day, if I am lucky, I will be old. I’m not just talking about
your early or mid-60s when you’re newly retired and mostly con-
cerned with fi nding some new hobbies to keep busy. At that point,
it’s your choice to stop working so long as you are ready.
B ut I’m talking about being 80, when I may not be able to work
if I want to. I want to be around. I want to keep seeing the world
vii
ffpprreeff..iinndddd vviiii 88//1111//0077 1122::0000::0077 PPMM