Cover image for You're fifty--now what? : investing for the second half of your life
You're fifty--now what? : investing for the second half of your life
Schwab, Charles.
Personal Author:
First paperback edition.
Publication Information:
New York : Three Rivers Press, [2001]

Physical Description:
x, 325 pages : illustrations ; 23 cm
General Note:
Includes index.
Format :


Call Number
Material Type
Home Location
Item Holds
HG179 .S3343 2001C Adult Non-Fiction Non-Fiction Area

On Order



Charles Schwab is one of America's most trusted and respected names in financial services. In the bestselling You're Fifty--Now What? Schwab offers you his advice and support on how to retire with the money you'll need to have the kind of life you want. You'll learn:

* The best investment strategies
* How to estimate how much you'll need
* How to choose investments for the second half of your life
* The ins and outs of insurance and how to be adequately insured
* The fine art of estate planning
* The tools of charitable giving
* And much more

Author Notes

Charles R. Schwab is the founder, chairman of the board, and co-CEO of The Charles Schwab Corporation. He is a member of the board of trustees of Stanford University, where he earned his B.A. in economics and his M.B.A. from the Graduate School of Business



I have a question for you, and it's simply this: How much is enough? It's a tough question, and it's essentially the topic of just about every retirement book, article, or seminar. Everyone's trying to figure out how much they'll need, and all the experts are trying to tell you how to do it. So how much will you need? How much does it take? Will you have enough? How much is enough? Chances are it's more than you think, thanks in part to some good news. We're living longer, for one thing. Today's 50-year-olds are a lot younger than the 50-year-olds of two generations ago. A lot of us will live to be 100. As a result, what we used to call retirement can last 30 or even 40 years. Not only that: we're healthier and therefore more active, so what we used to call our retirement years are a little more costly. And we have less help from the government -- Social Security isn't what it used to be. So while a lot of people think that if they have $300,000 or $400,000 set aside for retirement, they're set for life, they're probably wrong. True, that's a lot of money; chances are that it's a lot more than your parents had. But in reality, it may not be enough. So how much will it take to sustain the lifestyle you're picturing? There are some dangerous estimates out there. One number that's tossed around is 70%, meaning that in retirement you'll need 70% of your current income to live comfortably. That argument seems logical enough: a lot of costs will, after all, go down. If you're not working, you won't commute, you won't have to buy work clothes, and all those other work-related expenses will diminish. But do the costs go down enough to justify a 30% reduction in income? I don't think so. A recent national news story mentioned a 58-year old computer programmer who, when he retired, had heard that 70% estimate, but just had a feeling that it wasn't reliable. Instead he decided that he would need 100% of his pre-retirement income. Yes, he realized, there were costs that would go down -- 401(k) contributions, Medicare and Social Security taxes, commuting and other work-related expenses, for example -- but he suspected that those savings would be more than offset by a whole laundry list of other expenses: medical care, travel and entertainment, eating out. Many people have the same concerns. There are plenty of medical expenses for even healthy retirees, things that aren't covered by Medicare: prescription drugs, dental care, hearing aids, eye care. The house and car will still need maintenance, and it's common for retirees to find they can't or don't want to do as much of the work themselves, which means the added cost of hiring someone else to do work you used to do yourself. And a lot of retiring baby boomers are finding themselves part of the "sandwich generation." Retirement isn't their only financial concern; aging parents and the kids' college tuition? -- hings that used to be almost mutually exclusive -- are concerns as well. To say that things have changed is putting it mildly, and retirement is at the top of that list. When all is said and done, a lot of people are finding that once they've looked carefully at the costs of retirement, the expenses are significant enough to warrant revising their master plan. They're thinking about working longer, or investing a little more each month. In short, if retirement has changed, then planning for retirement has to change as well. It's time to revise our assumptions and our plans. It's time for something new. From the Hardcover edition. Excerpted from You're Fifty-Now What?: Investing for the Second Half of Your Life by Charles R. Schwab, Charles Schwab All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.

Table of Contents

Prologuep. 1
I. Planning for the Financial Second Half of Your Life
1. Investing Strategies for the Second Halfp. 7
2. Adding Up What You Havep. 28
3. Estimating How Much You'll Need for the Second Halfp. 46
4. Choosing Investments for the Second Halfp. 84
5. Cash Flow in the Second Half: Creating a Paycheck for Yourselfp. 127
6. Monitoring and Rebalancing Your Portfoliop. 155
II. Putting Your House in Order in the Second Half
7. Getting Help If and When You Need Itp. 187
8. The Assurance Called Insurancep. 208
9. The Fine Art of Estate Planningp. 226
10. Giving Something Back: Some Thoughts on Charitable Givingp. 249
Epiloguep. 265
Appendixp. 267
1. Financial Inventory Contact Listp. 268
2. Current Federal Income Tax Ratesp. 269
3. Estimating Your Social Security Paymentsp. 269
4. The Guideline of 230Kp. 270
5. The Investor Profile Questionnairep. 273
6. Reading the Fine Print: What to Look for in a Mutual Fund Prospectus and an Annual Reportp. 277
7. Comparing Mutual Fund Costsp. 280
8. Comparing Individual Bonds and Bond Mutual Fundsp. 281
9. Tax Equivalent Yield Tablep. 282
10. Learning More About Financial Advisorsp. 283
11. The Ins and Outs of Health Insurancep. 284
12. Medicare and Medigap: What They Will and Won't Coverp. 286
13. Disability Insurancep. 288
14. Durable Power of Attorney for Health Carep. 290
15. Long-Term-Care Insurancep. 292
16. Life Insurancep. 295
17. Insurance Rating Systemsp. 297
18. Some Tax Implications of Charitable Givingp. 299
19. Learning More About Charitable Givingp. 302
Glossaryp. 303
Indexp. 321