Asking For A Little Help…

I’m breaking from the usual weekly educational insights to ask a favor…

I’m revising my ebook and the associated sales letter that teaches the inside scoop on figuring how much money you really need to retire. This book explains the problems with the traditional retirement planning approach and provides alternative solutions that actually work.

The problem is I’m stuck in my own head about this subject and need your feedback to target this revision correctly.

The whole purpose of the book is to answer the question, “How much do I need to retire?”

My favor is simple. I want you to tell me what you would expect (want, hope) to learn from a book about this subject?

That’s it. You can make your answer as short or as long and detailed as you like. Whatever answers the question for you is what’s important.

In other words, I’m trying to understand what my readers would want to learn from this book so that I can compare it to my own assumptions. The goal is to learn the differences between what is in my head and what is in my reader’s heads so that my writing is better targeted to your needs. I can’t do it without your help.

So please share your answers in the comments below. Tell me what you would want to learn from a book discussing how much money you need to retire. What are the important questions in your head? What do you want to know?

Even if a previous commenter already said something similar to what you want to say go ahead and say it again in your own words because popularity and exact language used is just as important as the idea itself.

Everyone’s opinion is important… including yours. I can’t do it without your help. I’m stuck.

Thank you in advance for your insights. I appreciate your support.

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Todd,

I’ve been thinking a lot about the “How much is enough question”. There is only so much that you can write in one post but here are some additional thoughts.

How much is enough?

This is a highly personal question that has multiple answers. There is no one size fits all cookie cutter answer to this very important question. Some people “retire” on $1000 a month and are very content with this amount of money for their chosen life style. Others require $10,000 dollars or more a month to live the life style of their dreams. Clearly understanding personal goals and values are the keys that unlock the answer to this question. If you’re married, the answer to this question has additional complications. We all have different definitions of “How much is enough”.

The first step in answering this question is to clearly identify what you treasure most in life. This is not something that any of us can delegate to a financial planner. Financial freedom planning must align with our most important goals and values. If our financial plan closely aligns with our values, success will likely follow. If not, we’ll struggle to meet our goals because of conflicting value messages. In other words, decisions about how and where to spend our money should reflect our most important values.

Larry Weber spent 16 years working in the public pension administration field. He counseled prospective retirees early in his career and later served on an executive team of one of the largest public pension systems in the United States with assets in excess of 40 billion dollars. Larry is also a former national class runner who coaches others to reach their God given potential regardless of age or ability—from the first time runner to the world class athlete. He has found a significant correlation between the discipline required in running and the discipline required to reach financial freedom.

@Larry - It's interesting you added that footnote about running and financial freedom at the bottom of your comment. I have an upcoming post planned exactly on that topic where I equate the two disciplines. Maybe you should write it for me and I will publish it as a guest post? Or maybe send your thoughts, I will add mine, and we will co-author it?

Hi Todd,

I never got to read this article of yours. You must have mentioned Amerman somewhere else and I got on his list for the course. You have essentially summarized his whole course in one clear to the point article. He writes a lot of words to describe the subject matter and tries to keep you hanging to encourage you to buy his CDs. It was very informative and it got me thinking on a deeper level but you have summed it it here nicely.

Thank you,

Steve

@Steve - Thanks. One of my goals is to make sophisticated financial information accessible so my readers can actually put it to good use. I appreciate your feedback.

Todd,

I'll look for your post next week and add what I can.

Hi Todd,

With all of the great comments made so far I am now feeling really bad about saying that the tittle of your book sucked. Sorry! I am wondering if so much of this fear about inflation comes from Daniel R. Amerman (and the general US media as well ). I am not sure if it was you who suggested his readings but he had a free online series called "Turning Inflation into wealth" that deepened my knowledge on the subject. I would be interested in hearing a counter argument to the belief that " The sky is going to fall on America". One premise that I have heard is how our free capitalist system seems to always recover from its excesses due to its inherent flexible and creative nature. This seems to be Warren Buffet's view of America and I trust his opinion regarding the resilience of capitalism. As I have mentioned before I am using real estate to hedge my bets for the future by borrowing now at low rates long term with cash flow properties (essentially shorting the US dollar and making the banking system pay for much of the inflation over the course of 30 years. This seems to be the most straight forward and assessable means to protect most of us with an uncertain future of the US dollar. I would love to hear some of Larry's ideas as well as specifics from you too Todd. I realize this was not the topic of this thread so maybe we can discuss it another time.

Thank you,

Steve

@Steve, Larry, Tim - I will write next week's post about this subject and then you guys can build on what I write in the comments section to that post. That will allow us to keep the discussion on this post focused on the following, "What would you like/want/expect to see in a book discussing how much money you need to retire?"

Does that sound reasonable? I don't want to ignore you, but I want to stay focused.

Thanks.

@Todd Tresidder: Sounds great. I look forward to it.

@Steve Farwig: I've been checking out Amerman's stuff and it is great. Thanks for mentioning it. I'm looking forward to the free course.

@Tim - You'll find the original post from August 4, 2009 discussing Amerman's material with this group here. It is one issue in a three-part series on investment strategies for a crisis. Interesting reading given that a year and half has elapsed since then.

Todd,
I am very surprised and flattered that you would invite me, a laid-off health care worker, for some insights and opinions for your book. From what I've seen, here, in the comments, you are someone who is very knowledgeable when it come to finances and investing, and could very well put that into layman's terms for those people new to investing.- I think that should be relayed into you book. I believe that there are many people who are now gradually returning to the job market after a long lay-off, middle-aged and fairly new to investing and finance. Many of these people may also be worried of how they're going to save to live a comfortable retirement-and if retirement is at all possible. A book such as that would bring a great sigh of relief, as well as have a great respect for it's author.
...And on another note, my husband is back working, today. There is a possibility it will be more consistent with better opportunities for him. I'm keeping my finger crossed.

@Jeannine - Thank you for sharing your insights.

Todd,
"How much do I need to retire?" The answer to this question involves three main risk management scenarios in my mind. Retirement planning must include the following three major economic scenarios/seasons: Inflation, deflation, and hyperinflation. I don't worry about any of these economic conditions. I simply create risk mitigation plans and identify specific financial strategies that work in each type of economic environment.

No one has a crystal ball. It is impossible to predict the future. The identification of specific strategies to survive in each economic season has a much better chance of working for the average person. People need to be educated on how to thrive financially regardless of the current economic season. Retirement scenario planning based on the different types of economic seasons will help answer the "How much do I need to retire question".

I would get out of the box and develop detailed retirement scenarios for each economic season e.g., inflation, deflation, and hyperinflation. As you well know, there are specfic strategies that work in each type of economic environment. Help people cover their retirement bases by showing them how to succeed in all economic environments.

@Larry - Thank you for your feedback and ideas. Good to hear from you again.

@Larry Weber: Larry, would you be willing to provide a brief outline of your strategies for each of those scenarios? If Todd has no objection.

@Tim, Larry - I have no objection. I had actually considered the same question myself. What do you think, Larry?

I don't think that it is possible to answer the question, "How much do I need to retire?" with a number of $. How much would be sufficient in a Weimar-style hyperinflation? What if the Fed attempts to withdraw liquidity from the system and precipitates a 1930s-style depression? What if the world's big economies (such as the new #2, China) move quickly and strongly to replace the US$ as the world's reserve currency? There are other variables that will have a big impact on this question.

What could be done now, and would be helpful, is to tell your readers the various scenarios that could unfold, how they could be identified early, and what steps would be prudent once a scenario began.

@Tom - I'm fascinated by how many people share this viewpoint. A decade ago these thoughts didn't exist. Now they are becoming mainstream. The government's attempt to bailout the economy has created so much leverage and debt that people feel less secure than ever. A decade ago the answer could be calculated and people believed in it. Today, many share your position.

Funny. Government action always causes the opposite of the intended effect. They wanted to restore confidence in our economic system with the bailouts, and in the process, they undermined everyone's confidence in the future.

Curiouser and curiouser...

Anyway, thank you for those insights for the book's content. I had no idea how prevalent that belief structure had become.

Questions that come to mind about retiring:
What are the various options for retirement income? (stock dividends, annuities, real estate, cds, etc.)
What are the benefits and drawbacks of these vehicles?
What can I do if my calculation is wrong and I need more money in retirement? (Other than going back to work). How can I take some money that was simply earning interest and put it to work to create more assets to get me the extra I need?
How much more is available to me if I want to be active in managing my investments?
Rather than depleting my nest egg during retirement, how can I keep it perpetually growing so I actually have more to pass on to my heirs when I die than I had when I retired?

Like some of the other responders, I guess I have a problem with the initial question/premise. Helping someone figure out how much they need to retire seems like giving them a fish instead of teaching them to fish. These days, "Will I Ever Be Able to Retire?" or "What Can I Do to Ensure I Can Retire?" seem like more relevant questions.

If someone asked me for help figuring out how much they needed to retire on, I would ask them these questions:
What does "retire" mean to you? Does that mean never having to lift a finger again to provide income?
When do you want to retire?
How active do you want to be in managing your investments?
What kind of lifestyle do you want to lead in retirement?
How much do you want to have left over to pass on to your heirs?

Most calculators I've seen ask what rate of return you expect on your nest egg, how many years you expect to live, how much you want to draw each year, and how much to increase withdrawals for inflation each year. Then it tells you how big a nest egg you need. Those are nearly impossible questions to answer unless you are close to retirement because things can change so much in a couple decades. I'd rather learn to fish so I have more than I need when I decide to retire and figuring out a number now ceases to matter.

@Tim - Fantastic! Your feedback was golden and gave me lots of great stuff to work with. Several twists on perspectives that will be immensely helpful during my re-write. Thank you so much.

@Todd Tresidder: I'm glad my comments were helpful.

Mr. Tresidder: What you need is a crystal-ball, a genie-spilling lamp, a lucky rabbit's foot...actually, what I really mean to write is this: the future is uncertain, and all that we can do is make assumptions about tomorrow and the days after. I think that what needs to be addressed in your book is the need for the individual to make certain assumptions about retirement needs and desires, put in place a plan to achieve those things, and be ALWAYS in tune to the required awareness that assumptions are just that. The future will bring changes, and the individual must be ready and prepared to change when the need comes. Nimbleness, I believe, is necessary to survive in life; and a smile and a laugh and a sigh, and a "damn, I didn't see that coming, but I am not a bit surprised. Now, what can I do to make lemonade with this lemon" is a recommended response to the inevitable.
Good luck with your book. And good luck with advise giving.

JDW

@James - I'm hearing the need to address the assumptions required to complete the calculation. I'm also hearing the need to recognize the limitation of those assumptions and to monitor them as you progress through life so that you can adapt as times change.

I appreciate your constructive input. Very helpful. Thanks.

My question back to you is: Are you planning to provide your readers what they what or what you think they need? I would vote for the latter. I would suggest that if you have knowledge to impart (I believe you do), focus on that (what they need) and then figure out how to explain (market) why it is important to know (why they should want it). It could make your marketing more passionate.

To answer your question more directly, I would want to be assured that the information was relevant to me, not a variation of the free calculators or breezy articles on the subject (the "annual 4% of investment capital" answer) and truly was a creative and relevant insight into the question. For the marketing letter: tell me who you are and why I should listen to you?

I noticed n the comments for the current version that someone said they read it in about an hour. That suggests to me that the price could be perceived as too high. Can you make it part of a larger work? Are there steps or guidance about implementation, for example, that could be included or made into a second workbook?

@Anker - I'm hearing the importance of focusing on my unique message first without regard to marketing needs, and then figuring out how to explain that in a marketing friendly way. Do not digress to what will sell. Instead, deliver what is important from my viewpoint.

I'm also hearing that you would want to make sure the information is something more commanding and interesting than all the free stuff already available, and that I should clearly establish my credentials and why my message is important enough to justify paying for it.

Thank you for this input. Very helpful.

Todd,
I started reading your writings because I saw some new angle here, i.e. preparing for the retirement. You are talking about wealth accumulation and wealth management – but the upcoming great inflation might wipe out the real 9after inflation) purchasing power of typical investments. Your readings (from my perspective) lack a critical, in today’s times, angle - effect of upcoming large taxation and great inflation. I know, it’s hard to speculate, etc. what level of inflation are we going to see in the next 5-10-20 years. However, it does not take too much imagination to know that they are going to be very high (rates of inflation). D. Amerman’s readings are right on target– however, one has to extract/deduce from them the actionable items. This angle I would like you to cover.
I am talking about investments that you would not necessarily benefit from (as adviser, stock/bond/annuity traffic steerer, etc.) but ethically, as mentor, you should cover. This would include any viable form of investments in real/physical assets that have a chance of surviving the upcoming inflation tsunami. I have in mind precious metals, mining, real estate, off-shoring of the investments, etc. My problem is not what to buy, but when, why, and how to look for entry/exit points. Many of your readers have Self-Directed Roth IRA accounts – what would you advise them beyond just discussing what to buy? Many are beyond this point already. How? Why? – these would be the critical points to answer.
If you do not want to write about these subjects – then I am not your reader/subscriber.

Peter

@Peter - I'm hearing you would want to see information about how to invest in the coming great inflation - assuming one occurs. Thank you for that input on the book.

The input so far has been great. What else would everybody like to see in this book?

Hi Todd,

First off I am amazed and surprised that you of all people need help with your book. With all of the amazing and inspiring material that you have written on this website for you to ask for help is shocking! That said I think your tittle sucks. To me if someone asked me do I want to know how much money I need to retire I pretty much would say I don't care. But if someone asked me "Would you like to know how much you need to live a free and independent life without every having to worry about money again?" Now that grabs my attention! I guess the process of finding out how much you need in exact dollar terms, to me is boring. I want and need to be inspired so I seek out and buy books that inspire me. I am sure that there is a market for people who want to know how much they need to retire (10,000 Baby Boomers turning 65 every month right now), but I also think everyone wants to be inspired and if they can be inspired and find out what they need to know even better. Just a thought and I hope you won't find my comment too critical.

Thank you for the great work that you do.

Steve

@Steve - Ask and ye shall receive...

"Sucks", hmmmm.

I'm hearing the title is uninspiring, and you provide a general idea for potential content focusing on how to live a free and independent life.

These are all interesting points, and I think what you are really conveying is you're not in the target market for this book. I believe you are suggesting a totally different book.

The place where I would like to redirect the conversation is that this book is written and targeted for people trying to figure out how much money they need to retire. There is proven demand for the current book concept and my hope is to learn what you (my readers) would expect/want to learn from a book on this subject. I know there are many more books that can be written, but for now this is the book I'm working with.

So thank you Steve for this strong opening salvo to kick off the conversation with zest and enthusiasm.

Now, what would everyone else like to see in a book about this subject?

I welcome your feedback...

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