In their book, YOUR COMPLETE GUIDE TO A SUCCESSFUL AND SECURE RETIREMENT, Swedroe and Grogan cover all the bases when it comes to preparing for a secure and comfortable retirement -- from investing, social security, and insurance to women’s unique retirement issues, preparing heirs, and the threat of elder financial abuse.
I had a chance to interview Larry Swedroe to learn more.
Why did you decide to write this book?
I had authored and/or coauthored 16 other books, including four "Only Guides”: "The Only Guide You'll Ever Need to the Winning Investment Strategy,” "The Only Guide to a Winning Bond Strategy You'll Ever Need," "The Only Guide to Alternative Investments You'll Ever Need" and "The Only Guide You'll Ever Need for the Right Financial Plan." With the baby boomers now entering retirement, I thought it was time to write a comprehensive "Only Guide" on retirement planning. Sadly, despite its importance, most Americans don't have a written, well-thought-out plan that addresses the myriad issues we face when we retire, including planning a life in retirement.
What sets it apart from other retirement planning books?
While there are many other books on retirement, they tend to focus on one topic, such as investing or estate planning. Yet, retirement planning needs to cover a much wider landscape to include not only investment plans, but also planning for a productive life in retirement, withdrawal strategies, estate planning, when to take Social Security, HSA accounts and how to get the greatest benefit from them, the risks of cognitive decline and elder abuse which often follow, special issues women face, all types of insurance, and others. Because no one is an expert on all topics, I recruited an "all-star" team to help write the book, which I consider my magnus opus. It incorporates all that I've learned about not just investing, but how to integrate a well-thought-out investment plan into an overall estate, tax, and risk management plan that also includes having a meaningful life in retirement.
Why is financial planning only one element of retirement?
Retirement plans can fail for reasons that have nothing to do with financial/investment issues. For example, they might fail because someone took Social Security too early and then lived longer than average. They might fail because there wasn't proper insurance, be it life insurance, disability insurance, long-term care insurance or an umbrella policy, in place. They might fail because of poor estate planning. Perhaps there was good planning, but trusts were never funded or had the wrong assets placed in them. They can fail because plans were not updated when life events occur, such as divorces, or beneficiaries on retirement accounts were not updated. And perhaps most importantly, they can fail because of a failure to plan for a fulfilling life in retirement. So many of us have our social connections tied to work, and they are often lost on retirement. In addition, the reason to get up in the morning can disappear if plans are not put in place. Intellectual challenges can be absent as well. The results can be depression, divorce (the “I married you for better or worse, but not lunch” problem) and deteriorating health. That's why I recruited Alan Spector to help me write the first chapter "Retirement Planning Beyond the Financials."
Are there unique issues women face when it comes to retirement?
Katie Keary, our co-author of the chapter "Women's Unique Retirement Issues," identified 12 unique issues facing women. Among them are that while women have longer life expectancies, they tend earn less, start investing later, have fewer years of earned income, are less aggressive investors, are more likely to bear the physical, emotional and financial burden of the "sandwich generation" (caring for both parents and kids), are more subject to elder abuse, and are more likely to die single, divorced or widowed. We explore the impact of each of these diverse, and often interconnected, issues and offer solutions for how to address them in a way that leaves women more financially empowered.
LARRY E. SWEDROE is Director of Research for Buckingham Strategic Wealth and The BAM Alliance. He holds an MBA in finance and investment from New York University and a bachelor’s degree in finance from Baruch College. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, The Only Guide to a Winning Investment Strategy You’ll Ever Need. He has since authored seven more books and co-authored eight others.
KEVIN GROGAN is Director of Investment Strategy for Buckingham Strategic Wealth and The BAM Alliance. He is the co-author, with Larry Swedroe, of two previous books. He holds a bachelor’s degree in finance from Missouri State University and an MBA from Saint Louis University. He is also a Chartered Financial Analyst and a Certified Financial Planner.
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