I recently had the chance to read Money Sense Guide to Retiring Wealthy: A Financial Roadmap for Canadians of all Ages and was pleasantly surprised by the comprehensiveness and detail of the book. It is written by the editors of Moneysense with a forward by Johnathon Chevreau.
What I Like about MoneySense Guide to Retiring Wealthy
- I liked that they divided the book into decades of your life. It tells you what you should be doing in your 20’s, 30’s, 40’s etc. to ensure that you can retire wealthy (with proper planning of course)… along with the money advice that you should be doing, they also detailed things that usually happen in your 20’s (e.g. post-secondary school, buying a car) and 30’s (having children, buying a house) and how you can navigate these life milestones best.
- I also liked that throughout the book there were case studies and examples (e.g. first person accounts) of people in their 20’s or in their 50’s and sharing what they felt were important in order to get where they are at the present moment.
- I found that MoneySense explained annuities well (and piqued my interest) as I had not learned what these were prior to reading this book… I also appreciated that they mentioned how annuities may not be for everyone
- I appreciated that they gave the bottom line approach to your retirement savings rates depending on whether you rent or own. For example, if you are single and own your own home, you should save 10-15% each year for retirement. If you rent, you will need to save more (because there will not be a paid-off home in retirement).
- It was detailed but yet does not scare off the novice investor or person just getting interested in retirement planning. For example, they answered some pretty common questions (where there is often no “magic number” or consistency to the answer) such as how much you should withdraw a year from your nest egg– the answer is not simply 4% as most people advocate for, it can depend on when you retire, how the markets are doing, inflation etc.
- Finally, I liked the MoneySense laid out the risks involved with investing for retirement easily. For example, there are four different kinds of risks you should be protected from- market risk, inflation risk, the risk of picking something bad investments, and the risk of outliving your savings (also known as longevity risk)
What I Did Not Like about MoneySense Guide to Retiring Wealthy
- There weren’t many things that I disliked about the book. I thought it was great considering it is free on ibooks! (Can’t complain about free, really)
- One thing that I was wary about (however relieved but a bit skeptical that this benefit will still be there when it is my turn to retire) is that they encourage you to realize that you don’t need as much money to retire as you think you need… the reason being the Canadian government provides Canadian Pension Plan starting at age 60 (if you want to start cashing out at a reduced amount)…however, I would not want to base my current savings plan and retirement goals on something that the Canadian government could decide to change on a whim… I would much rather rely on myself if possible because we do not have 100% certainty that CPP will be there 30 years from now.
- It doesn’t “speak out” as much. For some reason the characters in Findependence day and in The Wealthy Barber were much more relateable.
My verdict on MoneySense Guide to Retiring Weatlhy is that it is a must read to get you started in the world of investing for retirement… especially since it is a free book from iBooks right now.
Readers, have you had the chance to read this Moneysense Guide to Retiring Wealthy book? What do you think of it?
If you haven’t had the chance to read it, it is free under iBooks (that’s where I downloaded my copy!). Some of the other copies of Moneysense publications such as The MoneySense Beginner’s Guide to Personal Fianance and the MoneySense Guide to the Perfect Portfolio are also in iBooks but have a cost associated to them, but a very reasonable cost of around $5 from what I recall.