Spend 'Til the End: The Revolutionary Guide to Raising Your Living Standard--Today and When You Retire
by Laurence J. Kotlikoff
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List Price: $26.00
Our Price: $14.69
Your Save: $ 11.31 ( 44% )
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Manufacturer: Simon & Schuster
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Average Customer Rating:  
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Binding: Hardcover
Dewey Decimal Number: 332.024
EAN: 9781416548904
ISBN: 1416548904
Label: Simon & Schuster
Number Of Items: 1
Number Of Pages: 336
Publication Date: 2008-06-10
Publisher: Simon & Schuster
Studio: Simon & Schuster
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Spotlight customer reviews:
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Customer Rating:
Summary: Practical & more reality focused than most
Comment: Kotlikoff and Burns seem to get it right for most Americans. They discuss the folly of a single number for retirement e.g, you'll need 80% or 70% of your pre-retirement income to have the same standard of living in retirement. Most of the other reviews go into great depth about the consumption smoothing so I won't repeat that here. I like the use of many hypothetical examples showing the effect of financial decisions on differing household circumstances. The montra to diversify resources, not portfolio, makes sense. If you have a strong SSN income (guaranteed), a low risk annuity, etc., then you can afford to take more risk elsewhere. Some of the comments are counterintuitive but make sense when you think about it. For example, if you intend to live in your house the rest of your life, a decrease in housing value is good, not bad ... because your property taxes are reduced and you have more current income. The authors don't worry much about passing on a fortune to adult children and I certainly agree ... as does Warren Buffett, for example. The variability and, more importantly, skew of stock returns is discussed in depth. If you are going to put everything in stocks, you need to accept a lower current spend because of the large variability -- in spite of the good long term return for US stocks over time.
As a writing techniquie, I like the "take away" sections at the end. I read the book in two days and felt like it was a good use of my time.
Bill Yarberry ([...], Houston, Texas
Customer Rating:
Summary: Engaging and Comprehensible on one of the World's Driest Subjects: Retirement Planning
Comment: Financial advice books in the past have left me with a vague notion that I need to save one million dollars before I retire, and by then I guess I'll know how to manage it. "Spend 'til The End" is much more in-depth and comprehensible. The initial chapters were so engaging that by the time the authors got to the nitty gritty, I was hooked, and willing to spend some time with them, going over retirement planning point by point.
Several concepts stand out and have given me a base for further research.
1.) I assumed Medicare premiums to be nominal payments drastically reduced to fit into old folks' budgets. This is a grossly false assumption on my part. Actually, Medicare premiums are rising so much faster than inflation that they are going to represent a hefty chunk of change when my own retirement rolls around.
2.)Social Security benefits vary according to the age when you begin taking it. Previously, I had only a hazy idea that I needed to seriously consider at what age I might retire. Now I realize that age of retirement could have a direct correlation to my standard of living.
3.) I must seriously ask myself, "Am I really going to spend less in retirement?" Conventional advice says that you have only to replace 60-80% of your current income. The thing is, with all of that free time, am I really going to spend less money? Or am I going to want to participate in activities that must be funded, like socializing at nice restaurants with my old geezer friends, or traveling with my aged husband to all of the places we couldn't afford in youth?
4.) Past generations only thought they would be retired a few years before death. Greater numbers of people are living to ages 90 or above, meaning you have to plan to live 30 or more years into retirement. Living longer creates a need for better planning and more precise estimates of monthly income and taxes. My complacent notion that I will figure it all out when it rolls around could literally be the death of me if my lack of planning leaves me unable to pay for food or medications!
Additionally, the authors add their voices to the growing number of financial advisors who are building the case for the use of no load/low cost index funds as the primary vehicles of retirement investment. Commonly held assumptions about mutual fund accounts are questioned along with the popular dictum to strategize your asset allocation by your age.
On the debit side, in order to check some of their calculations you would need a copy of the esplanner, which they developed, and constantly refer to in the book, but which you have to purchase for around $150.00 online. Also, calculations are written in an unwieldy paragraph form. Calculations would be more quickly grasped if they were line-itemed in a workbook format. However, even though I have to take their calculations at face value, I must give the book high ranking due to the authors ability to make engaging,thought-provoking and comprehensible, one of the driest subjects in the world. Now I am giving serious thought to issues I previously dismissed, which I imagine is the whole point of the book.
Customer Rating:
Summary: Take it with a grain of salt
Comment: Kotlikoff (an economist) and Burns (a syndicated financial columnist) offer an approach to financial planning that purports to resolve a lot of questions - how much do I need to save, what should I invest my money in, should I own a house or rent, etc. - based on one basic principle: consumption smoothing.
For readers who want to implement the recommendations, a computer program called ESPlanner is available that will do most of the work for them. The cost is minor in comparison to the fees and commissions for conventional investment, insurance and retirement planning services. Furthermore, according to the authors, "all conventional financial advice" is "wrong."
The central premise of the book rings true to me, i.e., some people needlessly deprive themselves by over saving and under consuming while they are still young enough to enjoy it. More people do just the opposite, of course, but we're talking individual cases here and not overall averages. And I certainly cannot see why people should give high priority to preserving an estate for their descendants unless their own needs are being comfortably taken care of.
Running down various financial decisions that people make, the authors argue in favor in paying off the mortgage instead of making other investments, choosing a Roth vs. conventional IRA, deferring Social Security until the maximum age of 70 in order to enjoy an enhanced pension, and investing the majority of their available funds (or 100% for those with a low tolerance for market volatility) in inflation indexed Treasury bonds (TIPs). Whether or not one chooses to agree, it is useful to have a reference that lays out some arguments that many readers may not have considered. More than enough reason to buy the book and keep it around.
K&B put a bit too much faith in the federal government, however, and surprisingly so given that they have argued elsewhere (e.g., in The Coming Generational Storm, 2004) that the government is overextended and will inevitably come a financial cropper.
#What sense does it make for lower income people to decide not to work because they would lose tax and healthcare benefits? Suppose these goodies are taken away at some point, because they are not affordable, and the people have forgotten how to work.
#Should an investor assume the government would shield him (or her) from economic loss on TIPs if inflation rose to double-digit levels or worse? As the inflation adjustment is classed as taxable income, even under current law, there is surely no warrant for describing the return on these securities as "risk-free."
#If Social Security benefits are unsustainable, wouldn't it make sense to claim the benefits that are offered at the earliest possible point rather than waiting until age 70? "Get it while the getting is good."
Also, given the possibility of unexpected medical expenses, investment reverses, and the like, the idea of depleting capital to smooth consumption throughout retirement may not be quite as sound as the authors suggest.
Customer Rating:
Summary: Retirement planning
Comment: A very well written and interesting book. I like and have used many of the ideas and techniques recommended by the authors. I have followed Scott Burns' columns in the Dallas Morning News for years.
This is a book that should be read by someone who is in their 30-40s to help them plan for a successful retirement.
Customer Rating:
Summary: Future Shock
Comment: Our lives, including our financial lives, are a complex, ever changing dynamic. This book, along with the authors ESPlanner computer program, will allow everyone to look at the long term effects of their current financial decisions. Most financial planning advice is based a generalities and simplistic rules of thumb and don't handle the long term, variable needs of our changing families. Spend to the End deals with these needs and how to maximize living standards throughout our complex lives.
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Editorial Reviews:
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Customer Rating:
Summary: Practical & more reality focused than most
Comment: Kotlikoff and Burns seem to get it right for most Americans. They discuss the folly of a single number for retirement e.g, you'll need 80% or 70% of your pre-retirement income to have the same standard of living in retirement. Most of the other reviews go into great depth about the consumption smoothing so I won't repeat that here. I like the use of many hypothetical examples showing the effect of financial decisions on differing household circumstances. The montra to diversify resources, not portfolio, makes sense. If you have a strong SSN income (guaranteed), a low risk annuity, etc., then you can afford to take more risk elsewhere. Some of the comments are counterintuitive but make sense when you think about it. For example, if you intend to live in your house the rest of your life, a decrease in housing value is good, not bad ... because your property taxes are reduced and you have more current income. The authors don't worry much about passing on a fortune to adult children and I certainly agree ... as does Warren Buffett, for example. The variability and, more importantly, skew of stock returns is discussed in depth. If you are going to put everything in stocks, you need to accept a lower current spend because of the large variability -- in spite of the good long term return for US stocks over time.
As a writing techniquie, I like the "take away" sections at the end. I read the book in two days and felt like it was a good use of my time.
Bill Yarberry ([...], Houston, Texas
Customer Rating:
Summary: Engaging and Comprehensible on one of the World's Driest Subjects: Retirement Planning
Comment: Financial advice books in the past have left me with a vague notion that I need to save one million dollars before I retire, and by then I guess I'll know how to manage it. "Spend 'til The End" is much more in-depth and comprehensible. The initial chapters were so engaging that by the time the authors got to the nitty gritty, I was hooked, and willing to spend some time with them, going over retirement planning point by point.
Several concepts stand out and have given me a base for further research.
1.) I assumed Medicare premiums to be nominal payments drastically reduced to fit into old folks' budgets. This is a grossly false assumption on my part. Actually, Medicare premiums are rising so much faster than inflation that they are going to represent a hefty chunk of change when my own retirement rolls around.
2.)Social Security benefits vary according to the age when you begin taking it. Previously, I had only a hazy idea that I needed to seriously consider at what age I might retire. Now I realize that age of retirement could have a direct correlation to my standard of living.
3.) I must seriously ask myself, "Am I really going to spend less in retirement?" Conventional advice says that you have only to replace 60-80% of your current income. The thing is, with all of that free time, am I really going to spend less money? Or am I going to want to participate in activities that must be funded, like socializing at nice restaurants with my old geezer friends, or traveling with my aged husband to all of the places we couldn't afford in youth?
4.) Past generations only thought they would be retired a few years before death. Greater numbers of people are living to ages 90 or above, meaning you have to plan to live 30 or more years into retirement. Living longer creates a need for better planning and more precise estimates of monthly income and taxes. My complacent notion that I will figure it all out when it rolls around could literally be the death of me if my lack of planning leaves me unable to pay for food or medications!
Additionally, the authors add their voices to the growing number of financial advisors who are building the case for the use of no load/low cost index funds as the primary vehicles of retirement investment. Commonly held assumptions about mutual fund accounts are questioned along with the popular dictum to strategize your asset allocation by your age.
On the debit side, in order to check some of their calculations you would need a copy of the esplanner, which they developed, and constantly refer to in the book, but which you have to purchase for around $150.00 online. Also, calculations are written in an unwieldy paragraph form. Calculations would be more quickly grasped if they were line-itemed in a workbook format. However, even though I have to take their calculations at face value, I must give the book high ranking due to the authors ability to make engaging,thought-provoking and comprehensible, one of the driest subjects in the world. Now I am giving serious thought to issues I previously dismissed, which I imagine is the whole point of the book.
Customer Rating:
Summary: Take it with a grain of salt
Comment: Kotlikoff (an economist) and Burns (a syndicated financial columnist) offer an approach to financial planning that purports to resolve a lot of questions - how much do I need to save, what should I invest my money in, should I own a house or rent, etc. - based on one basic principle: consumption smoothing.
For readers who want to implement the recommendations, a computer program called ESPlanner is available that will do most of the work for them. The cost is minor in comparison to the fees and commissions for conventional investment, insurance and retirement planning services. Furthermore, according to the authors, "all conventional financial advice" is "wrong."
The central premise of the book rings true to me, i.e., some people needlessly deprive themselves by over saving and under consuming while they are still young enough to enjoy it. More people do just the opposite, of course, but we're talking individual cases here and not overall averages. And I certainly cannot see why people should give high priority to preserving an estate for their descendants unless their own needs are being comfortably taken care of.
Running down various financial decisions that people make, the authors argue in favor in paying off the mortgage instead of making other investments, choosing a Roth vs. conventional IRA, deferring Social Security until the maximum age of 70 in order to enjoy an enhanced pension, and investing the majority of their available funds (or 100% for those with a low tolerance for market volatility) in inflation indexed Treasury bonds (TIPs). Whether or not one chooses to agree, it is useful to have a reference that lays out some arguments that many readers may not have considered. More than enough reason to buy the book and keep it around.
K&B put a bit too much faith in the federal government, however, and surprisingly so given that they have argued elsewhere (e.g., in The Coming Generational Storm, 2004) that the government is overextended and will inevitably come a financial cropper.
#What sense does it make for lower income people to decide not to work because they would lose tax and healthcare benefits? Suppose these goodies are taken away at some point, because they are not affordable, and the people have forgotten how to work.
#Should an investor assume the government would shield him (or her) from economic loss on TIPs if inflation rose to double-digit levels or worse? As the inflation adjustment is classed as taxable income, even under current law, there is surely no warrant for describing the return on these securities as "risk-free."
#If Social Security benefits are unsustainable, wouldn't it make sense to claim the benefits that are offered at the earliest possible point rather than waiting until age 70? "Get it while the getting is good."
Also, given the possibility of unexpected medical expenses, investment reverses, and the like, the idea of depleting capital to smooth consumption throughout retirement may not be quite as sound as the authors suggest.
Customer Rating:
Summary: Retirement planning
Comment: A very well written and interesting book. I like and have used many of the ideas and techniques recommended by the authors. I have followed Scott Burns' columns in the Dallas Morning News for years.
This is a book that should be read by someone who is in their 30-40s to help them plan for a successful retirement.
Customer Rating:
Summary: Future Shock
Comment: Our lives, including our financial lives, are a complex, ever changing dynamic. This book, along with the authors ESPlanner computer program, will allow everyone to look at the long term effects of their current financial decisions. Most financial planning advice is based a generalities and simplistic rules of thumb and don't handle the long term, variable needs of our changing families. Spend to the End deals with these needs and how to maximize living standards throughout our complex lives.
Rich or poor, young or old, high school or college grad, this book, written by economist Laurence J. Kotlikoff and syndicated financial columnist Scott Burns, can change your life for the better! If you follow the advice in this book, it will raise your living standard (possibly by a lot), improve your lifestyle, and help you spend 'til the end. And it will completely transform your financial thinking, turning every bit of conventional financial wisdom on its head. If this sounds like a revolution in financial planning, you got it. So do The New York Times, The Washington Post, The Wall Street Journal, USA Today, Time, Consumer Reports, and other top publications that have been featuring the authors' economics-based "consumption smoothing" approach to financial planning. Spend 'Til the End substitutes economic wisdom for the "rules of dumb" that currently pass for financial advice. In the process it indicts the investment and financial-planning industry for giving most people saving and insurance targets that are much too high and then convincing them to invest in risky mutual funds and expensive insurance policies. The result is that most people are scrimping and saving during the years when they could be spending and enjoying their money -- and with no sure payoff. Easy to read, this book is packed with practical and often shocking advice on whether to work, how to pick a career, which job to take, where to live, what sort of house to buy, how much to save, when to retire, which kind of retirement account to use, whether to have kids, whether to divorce, when to take Social Security, how fast to spend down your assets in retirement, and how to invest.
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