"Planning Retirement Is No New Problem"

It’s a “quiet desperation” we all experience as we age. Henry David Thoreau (1817-62) identified the feeling over 150 years ago in his book, ‘Walden”, written in 1854. We worry and despair---will our lifespan exceed our retirement portfolio.

Financial planners throw various figures around for us to grasp at as though the numbers will save us. Some say the combination of our Social Security and pension benefits and the interest on our retirement nest egg should total 65% of our current salaries. Others say that if we don’t want to reduce our standard of living when we retire, the combination of the above should be 85%. But, to achieve an 85% standard of living, most of us would need to be millionaires at retirement time. If Thoreau were living today, he would readily identify with our despair.

How one plans to live in retirement is an issue that many refuse to face. It’s “The Number”--- how much money do we need to make secure the rest of our lives. Can we really know that? Will it change?

In his fascination book, “The Number”, Lee Eisenberg examines this issue—both philosophically and analytically. He interviews wealth gurus, financial advisors, everyday investors, and retires to gain insight on this illusive “Number”. According to Eisenbert, everyone’s “Number” is different.

His book is not intended as a “how to” financial guide, but instead, he provided a provocative examination of the aging generation’s retirement worries and the investment industry’s desire to profit from it. Based on his perceptive analysis of financial strategies and the “despair factor”, he urges his reader to reconsider his perceived “number” and how he is investing to achieve it.

The author probably poses more questions than he offers solutions. His approach is more philosophical than financial. The author argues that there is more to a successful retirement than amassing a large stash of money. With life-spans ever increasing, many of us will spend a quarter or more of our lives in retirement. Having enough money to fund those years is certainly important, but there is also the question of what to do with those years, besides just waiting for them to end.

It’s a good question. Have any of us really asked ourselves, “What do I want to do with the rest of my life?” Or, better yet, “What am I going to do the day after my last day at work?” Your financial advisor and you may have worked out a “number”. You may be satisfied with it. But, factors may arise—death of a spouse, ill health, added family responsibilities, etc—that will cause changes in your retirement expectations.

If your plans have been to travel the world, but your inability to achieve your “number” doesn’t allow it at a 4-star level, you might drop your travel-star level to a three or a two to do what you have always dreamed of doing.

Any attempt to deal with retirement the day after it occurs is an effort slated for disappointment. Eisenberg helps the reader ask and answer some important questions that will make the transition less stressful and more positive.

Additional new books on the topic of personal finance include: “The Future for Investors, Why the Tried and the True Triumph over the Bold and the New” by Jeremy Siegel, “The Little Book That Beats the Market” by Joel Greenblatt, “The Automatic Millionaire Homeowner, a Powerful Plan to Finish Rich in Real Estate” by David Bach, “Smart and Simple Financial Strategies for Busy People” by Jane Bryant Quinn, “The Wall Street Journal Compete Personal Finance Guidebook by Jeff D. Opdyke, and “The Dilemmas of Family Wealth, Insights on Succession, Cohesion, and Legacy” by Judy Martel.