BogleHeads' Guide to Retirement Planning

Huston55

Huston55

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Has anyone read this book?

Would you recommend it?

I'm looking for info on the following subjects in particular:
1. Closing the income gap btwn ER and pension/SS.
2. Withdrawal strategies (including tax minimization, conversions, etc.).

Are there other books, or threads, you'd recommend?
 
I have it, and would recommend it. If you haven't seen it, here's the table of contents so you can see the topics it covers. It presents a very good overview of the topics, but not an exhaustive discussion on any IMO. Many of the topics are worthy of books in themselves...your bullet #2 for example. [Edit: Each section is written by a different author, so it's more like a reference than a normally flowing book by one author. However, the order makes sense, so reading chapters in sequence isn't out of the question either.]

3.1 Foreword (John C. Bogle)
3.2 Preface
3.3 Acknowledgments

3.4 Part I: The Basics
3.5 Part III: Managing Your Retirement Accounts
3.6 Part IV: The Retirement Payoff
3.7 Part V: Protecting Your Assets
3.8 Part VI: Finding Good Advice When You Need It
3.9 Appendix I: Pearls of Wisdom
3.10 Appendix II: Recommended Reading
3.11 Glossary
3.12 About the Authors
 
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Huston55 said:
Has anyone read this book?
Would you recommend it?
I'm looking for info on the following subjects in particular:
1. Closing the income gap btwn ER and pension/SS.
2. Withdrawal strategies (including tax minimization, conversions, etc.).
Are there other books, or threads, you'd recommend?
Click to expand...
Good book... have you looked at the Bogleheads wiki, where Midpack's links are coming from?
 
I have the book and could not finish reading it. Each chapter has a different author, so the change in style on each chapter just put me off completely. It could have used much tighter editing. The first "Bogleheads' Guide to Investing" was better in that regard.

Yesterday, I read my library's online copy of Larry Swedroe's "Only Guide ... Right Financial Plan". This book is mostly about investment management, but does have chapters on tax-efficiency, asset location, when to take Social Security, and some ideas about withdrawal strategies. I have other Swedroe books and this falls in line with those.

I am not sure one can just read one book on these subjects. It sure seems to me that one has to read at least 5 books (add Otar's "Unveiling the Retirement Myth" for sure), a bunch of articles on the web, then some less well-known web sites such as Bob's Financial Website

You will also have to synthesize or merge the various bits of info you get as you cannot really follow verbatim the advice of any of these sources.
 
The Bogleheads' book appeared too late for me to use it in my retirement planning, but I bought and read it anyway just to make sure I was on the right track. I thought it was terrific. I'd say you should buy it! :)
 
I bought the book after reading a few good recommendations about it online, but never had the time to read it.

As for other threads, I am happy here - although some discussions about healthcare or some sexual inuendos turn me off a bit sometimes - and I have been learning a lot about FIRE, thanks to many of you.

I am thinking about registering at the Bogleheads' site also (should I use a different user name or the same one?).

Huston55 said:
Has anyone read this book?

Would you recommend it?

Are there other books, or threads, you'd recommend?
Click to expand...
 
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I bought the book a couple months ago. The different authors didnt bother me, because I read a different chapter each night. Kind of used to make my eyes sleepy. I wouldnt say any more information was taken from the book that I havent read here or on Bogleheads, but it is good reinforcement for me. Currently reading Bodie's "Risk Less and Prosper". My first venture into reading a book on my IPad.
 
obgyn65 said:
I am thinking about registering at the Bogleheads' site also (should I use a different user name or the same one?).
Click to expand...

You can use the same user name. I do, it's just easier to remember. It's an interesting site with much useful information (and much extraneous discussion of tiny details). The WIKI is outstanding.

Rita
 
Pack/Nords-

Just spent a couple hours on the Bogle Wiki - what a tremendous resource! Thanks! I already knew some of this info and some of the links (like Bob's Financial Website) but, there's a ton more Info and dozens of links that deserve days of study.

I'm still looking for info on my two specific questions though: (1) covering the ER gap and, (2) optimum withdrawal strategies.
 
Huston55 said:
Pack/Nords-

Just spent a couple hours on the Bogle Wiki - what a tremendous resource! Thanks! I already knew some of this info and some of the links (like Bob's Financial Website) but, there's a ton more Info and dozens of links that deserve days of study.

I'm still looking for info on my two specific questions though: (1) covering the ER gap and, (2) optimum withdrawal strategies.
Click to expand...

A pretty good hint of optimum withdrawal strategies at least with respect to taxes is found at Optimal Retirement Calculator and Retirement Decision Support System which is a calculator. Another place to look is the Fidelity Retirement Income Planner. All tax calculations should be confirmed with TurboTax or other tax software though.

A good hint of how SPIA and other assets can get you out of the red zone into the green zone is found in Otar's "Unveiling the Retirement Myth" and an associated calculator at otar retirement calculator

There is tons of stuff to read, but I see no problem devoting a month or two fo time to planning some of the next 40 years of your life.

BobsFinancialWebSite has a clear description as well of how to combine TIPS, social security and SPIA to get what you need.

I am not sure if your ER gap is one of time (years between retirement and starting SS) or one of money (not enough money to fund your ER).
 
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LOL! said:
A pretty good hint of optimum withdrawal strategies at least with respect to taxes is found at Optimal Retirement Calculator and Retirement Decision Support System which is a calculator. Another place to look is the Fidelity Retirement Income Planner. All tax calculations should be confirmed with TurboTax or other tax software though.

A good hint of how SPIA and other assets can get you out of the red zone into the green zone is found in Otar's "Unveiling the Retirement Myth" and an associated calculator at otar retirement calculator

There is tons of stuff to read, but I see no problem devoting a month or two fo time to planning some of the next 40 years of your life.

BobsFinancialWebSite has a clear description as well of how to combine TIPS, social security and SPIA to get what you need.

I am not sure if your ER gap is one of time (years between retirement and starting SS) or one of money (not enough money to fund your ER).
Click to expand...

LOL-

Thx for the references. I've just started using ORP's calculator, and my portfolio is loaded in Fido's RIP tool, with which I'm very familiar. I've also spent a lot of time on Bob's Financial Website. I've yet to read Otar's book so, have to add that to my list.

My "gap" is one of time; 5-10 yrs, during which I need to fill an income gap to ER. Looking for methods to do that.
 
In my gap, I will simply withdraw from a joint taxable investing account tax-free since return of capital is tax-free and carryover losses will take care of any gains. At the same time, we will be converting 401(k) assets to Roth IRAs. I showed my wife today how we can convert between $60K and $70K a year to Roth IRAs and pay no taxes on the conversion. So that's my method.
 
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obgyn65 said:
I am thinking about registering at the Bogleheads' site also (should I use a different user name or the same one?).
Click to expand...
I kept the same user name so that I'd be able to establish a common brand across all the discussion boards.

I also post at Bogleheads as "Azanon" and "Cut-Throat".
[Just kidding. Inside joke for other former moderators...]

Huston55 said:
Pack/Nords-
Just spent a couple hours on the Bogle Wiki - what a tremendous resource! Thanks! I already knew some of this info and some of the links (like Bob's Financial Website) but, there's a ton more Info and dozens of links that deserve days of study.
I'm still looking for info on my two specific questions though: (1) covering the ER gap and, (2) optimum withdrawal strategies.
Click to expand...
As others have said, Otar.

Wade Pfau also has a good blog on variable withdrawal strategies with an annuity foundation:
Pensions, Retirement Planning, and Economics Blog

Here's another perspective:
Is the 4% withdrawal rate really safe? | Military Retirement & Financial Independence
After I posted that one, Wade e-mailed me to say that I understand what he's talking about.
 
rec7 said:
Both Bogleheads' books are worth buying. If you want to save money buy them used.
Click to expand...
Or check them out at your local library, and then buy them if they look worthwhile (it's what I do for 90% of the books I buy). I buy very few of the books I check out at the library, but there are some that are worth the $ IMO. Just part of LBYM...
 
obgyn65 said:
...but never had the time to read it.
Click to expand...
Please don't take this comment poorly, but you don't have time to prepare your "financial future"?

I applaud your self-dedication to help others around the world, but I would say (as an old saying), "physician, heal thyself".

You can't be of value to others if you can't take care of your own (financial) future.

Just my simple POV/opinion.

(Sorry if I offended you)...
 
Midpack said:
Or check them out at your local library, and then buy them if they look worthwhile (it's what I do for 90% of the books I buy). I buy very few of the books I check out at the library, but there are some that are worth the $ IMO. Just part of LBYM...
Click to expand...

I am a super cheapskate Midpack. I go to the library check them out if I like them a lot I buy them used.
 
Other "gap" solutions:
(a) Withdraw penalty-free from your IRA using a SEPP/72(t) method.
(b) Retire at age 55 from employer, then 401(k) withdrawals are penalty-free.

I am still trying to understand this "gap" thing the OP is writing about.
 
LOL! said:
In my gap, I will simply withdraw from a joint taxable investing account tax-free since return of capital is tax-free and carryover losses will take care of any gains. At the same time, we will be converting 401(k) assets to Roth IRAs. I showed my wife today how we can convert between $60K and $70K a year to Roth IRAs and pay no taxes on the conversion. So that's my method.
Click to expand...

LOL! said:
Other "gap" solutions:
(a) Withdraw penalty-free from your IRA using a SEPP/72(t) method.
(b) Retire at age 55 from employer, then 401(k) withdrawals are penalty-free.

I am still trying to understand this "gap" thing the OP is writing about.
Click to expand...

LOL-

To clarify my question regarding "the gap", it's how to provide adequate income during the time gap btwn ER and collecting pension/SS. What techniques have others used successfully to do this, while minimizing the tax hit, maintaining flexibility, etc.

I think you've understood my question, based on your replies above. But, I'd like to hear more from you and others on this.

Thanks.
 
Huston55 said:
LOL-

To clarify my question regarding "the gap", it's how to provide adequate income during the time gap btwn ER and collecting pension/SS. What techniques have others used successfully to do this, while minimizing the tax hit, maintaining flexibility, etc.

I think you've understood my question, based on your replies above. But, I'd like to hear more from you and others on this.

Thanks.
Click to expand...

I'm 2 years into the gap between 55 and 59.5 before our IRA funds are available without use of a 72(t).

I started buying I-Bonds and CD's 7 years out from age 55 and am now using them as an income stream to supplement the pension I get. Seems a little strange to not be saving for ER anymore, but I'm sure I'll get over it .
 
Alan said:
Seems a little strange to not be saving for ER anymore, but I'm sure I'll get over it .
Click to expand...

+1

Thanks to everyone posting here it made me realize I need to put a plan together around this. DH is just past 59-1/2. As part of ER in 2010, I put aside enough cash to fill the "gap" until I start my (non-COLA) pension in late 2015. But he has significant traditional IRAs (mostly 401K rollovers) that now can to be part of the overall withdrawal plan. Time to crunch some numbers again!
 
Other ideas:

Sell house, live in van down by the river.
Sell house, move in with girlfriend
 
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