Learning How to Retire

Figuring out how to retire isn’t easy.

Take me, for instance. I’ve been a student of the subject for nearly 60 years. I understand the math, the tools and the major issues. I’ve had the resources to be completely retired for 20 years. And I reached the age of 84 a week ago.

I am one of the fortunate ones. Retirement isn’t still a problem for most men who were born when I was because nearly 80 percent have died.

But I still haven’t “pulled the trigger” on actual retirement.

That leaves me in an awkward position. I can be an “age scout,” a term aging expert Ken Dychtwald used decades ago. I can report on aspects of impending retirement for readers. But I can’t report as a true retiree.

Most readers want to avoid my fate. You’ll need to learn how to retire in a timely fashion. Like at a nice, tender age. Think 65. Or 67. No later than 73, the age when required minimum distributions are, well, required.

Query: Is there a way anyone, at any age, can learn about the process of financing their life, the whole enchilada?

There is. Her name is Christine Benz. Her book is titled “How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement.”

Her name may be familiar because she is the director of personal finance and retirement planning for the Morningstar website. If Morningstar doesn’t ring a bell, please take your free ticket to the banquet. Morningstar is the website devoted to providing retail investors with unbiased information on any aspect of investing, personal finance and retirement, all written in language most people can understand.

The subtitle is important. The book has 311 pages and 20 lessons, all written as interviews. That means you get to read easily understood conversational English. With an average length of about 15 pages, each lesson can be read it casually. Each chapter ends with her “takeaways” and a few references for further reading, watching or listening.

Can it compete with Tik-Tok or YouTube shorts for brevity? No way. But this is a real book. It is not to be compared with the fact-free drivel that dominates cellphone and website use.

Here are some of the things I particularly liked about the book:

If there is a decision you face in life, it will be discussed. We may all be different, but we share a life cycle that begins with youth and ends with old age and death. Our differences are ephemeral when seen through the lens of our shared life cycle.

Want to learn how to think about homeownership? Go to Lesson 12, where journalist and podcaster Mark Miller talks about the difference between the investment role of shelter and the role our homes have as self-expression.

Worried, as a woman, about the challenges you face? Go to Lesson 17, where columnist Jean Chatzky discusses your longer life expectancy and the odds of needing care.

Mystified by health care decisions? Go to Lesson 16, where financial adviser Carolyn McClanahan provides a map of important distinctions while you are working and as you retire.

When in doubt, rely on simplicity. This is a background theme throughout the book. But my favorite advocate is William Bernstein, the biochemist/neurologist who has more brainpower than most of the people you’ll meet in the investment world.

In Lesson 9 about asset allocation, he mentions his “Prom Queen Theory of Life” – that if you’re a Prom Queen “you tend to overemphasize the importance of good looks.”

“Math is important,” he tells us, “But don’t focus entirely on it.” He reminds us of Charlie Munger’s first rule: “Never interrupt compounding.” The more complicated salespeople make your portfolio, the more interrupted compounding will be.

Money is a tool, your tool. It is not your master.  Whether it is saved money or spending money, your money is a tool for you to realize the life you hope for. I know this seems like an empty truism, but I have always been amazed at how easily people become shadows of their money.  Again, you’ll find this theme developed in a very healthy and useful way throughout the book.

            You should also know that Christine Benz organizes the annual Bogleheads conference, a worldwide community of people learning and following the simple, low-cost index investing fostered by the late John Bogle, founder of Vanguard. Next year’s conference will be held in Austin.

 Shortcomings or complaints?  Just two. First, I wish there had been a chapter with financial consultant Allan S. Roth. Like William Bernstein, he’s wonderfully smart. And very funny. To sample, read his book “How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn” or just check out his website, www.daretobedull.com.

            Second, I understand the need for takeaways and minimal references. But this book is rich in background. It deserves an index. Books with less content don’t need them.

Related columns:

Scott Burns, “Index Investing, the Long Haul and the Rest of Your Life,” 9/23/2024: https://scottburns.com/index-investing-the-long-haul-and-your-life/

Scott Burns, “The Better Monkey Solution,” 3/9/2014: https://scottburns.com/the-better-monkey-solution-low-cost-index-fund-investing/

Sources and References:

Ken Dychtwald, “THE BOOMERS ARE COMING: CHALLENGES OF AGING INTHE NEW MILLENNIUM,”  9/8/1999 (Testimony before the US Senate Special Committee on Aging):  https://www.aging.senate.gov/imo/media/doc/publications/1181999.pdf

Christine Benz, “How to Retire: 20 Lessons for a Happy, Successful and Wealthy Retirement” : on Amazon: https://www.amazon.com/How-Retire-Lessons-Successful-Retirement/dp/B0DH57BM8Y/ref=sr_1_1?crid=2Z7CRYAJDYL3G&dib=eyJ2IjoiMSJ9.7nYmoT1mVjavnihF3C37Ahy9C3g_Nh2RyInOpBR6nyXce13hzj8Odtq1IjtsXg1MP3TQVvIIi7Wli4Q6nX6reJg3FGwQBV_4mrYML7A_dTA5qP3WiApFf7hYvKVl4nOOcD7226FsPc-OJn1Z-m1DfLeBj3Z-WLJvxtWpskChAwGK1BrXgejVGsIwLUTa9UJ_.BawJbvey-h2utU4gpETjJXxwGnn79HUOSoisUR3zMvU&dib_tag=se&keywords=christine+benz+how+to+retire&qid=1731079896&s=books&sprefix=Christine+Benz%2Cstripbooks%2C227&sr=1-1

Morningstar website: https://www.morningstar.com

Allan S. Roth, “How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn”  : on Amazon: https://www.amazon.com/Second-Grader-Beats-Wall-Street/dp/B003F7R9EK/ref=sr_1_1?crid=3LFH4JTQMLCZE&dib=eyJ2IjoiMSJ9.cWIwGIFMKB3xtvUnM_CzqA.ucN2gHnQruBjzFHdXSRiGWFUSGzQZdfTYZURDGuBpHw&dib_tag=se&keywords=how+a+second+grader+beats+wall+street&qid=1731080763&s=books&sprefix=How+a+second+grader+beat%2Cstripbooks%2C163&sr=1-1

Allan S. Roth website: https://daretobedull.com

This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.

Photo: Scott Burns, a view along the Camino de Santiago

(c) Scott Burns, 2024