A New Year's Resolution That Pays

It was probably Warren Buffett, but who knows, maybe it was Yogi Berra, who said (I paraphrase), "Don't wait until it rains before fixing your roof."  In this spirit, I suggest the resolution for 2015 to read some personal finance/investment books.  This isn't as painful, for most people, as most resolutions.  It isn't like pushing away the second piece of blueberry cheesecake or trying to quit smoking.  In fact, many people would surprise themselves because it is, in effect, the same as finding money.  The important point to understand is that these books lay out the steps you need to take before "...it rains."

For example, the wrong time to worry about your disability insurance is right after the doctor has told you that you'll need hip replacement surgery.  The wrong time to question your home insurance is as you watch fire trucks pulling up to your house.  And, yes, the wrong time to seriously think about funding life in your 60s is in your 50s.

Here is a post where I listed 4 of the books I recommend most often:

recommended books.

Let me add, as well The Charles Schwab Guide to Finances After Fifty by Carrie Schwab-Pomerantz.

As an example of what you'll find in this book, consider the following table (p. 251):

LIFETIME SOCIAL SECURITY BENEFIT

Source: The Charles Schwab Guide to Finances (p. 251)

The table shows the break-even for a $1,000 monthly benefit.  The payout equalizes, as shown, at age 78 for the earliest take-out opportunity and the full retirement age of 66.  Comparing full retirement age and age 70, the break-even occurs at age 83.

Notable, of course, is the additional almost $100,000 from holding off versus earliest choice for the 95-year-old.

Admittedly, the information in the books recommended here can be garnered by paying an advisor a couple of thousand dollars, and this is a route those with more complicated situations should go if they can afford it.  Still, it can be beneficial even for those of you in this boat to have at least a cursory knowledge of the areas you will cover.

Happy 2015 to you and your family!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


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