Friday, January 30, 2009
AOL offers major financial planner's ten major retirement planning tips
Daniel Sorkin has a telling list of ten retirement tips on AOL today.
He starts by talking about the goal of retiring on 75% of income, and says that the conventional wisdom of saving 15%, including employer match, assumes good return on investments, something not happening today. He suggests a Target Retirement Fund. He considers annuities redundant if one already has a tax-deferred 401K plan. One of his answers explains how a Roth IRA (which not everyone can get) differs from a traditional 401K or IRA; a Roth is “tax avoidance”, he says. He also tells people not to invest in company stock (remember Enron?)
The basic reference on “Money.aol” is here. His full "essay" answers are on “Bloggingstocks”, for example, this is tip 1.
Sorkin is author of “The Smartest 401k Book You'll Ever Read: Maximize Your Retirement Savings...the Smart Way!” From Peregee Trade (June 2008, before the crash, though).