Your Nest Egg Game Plan | Book Review

The following book review was written by Nicole from Rainy-Day Saver.

The writing style can be dry, but authors Phil Fragasso and Craig L. Israelsen offer some sound advice in their book, “Your Nest Egg Game Plan,” which aims to point folks in the right direction when it comes to investing and saving their money for retirement. Combining personal anecdotes with explanations of different savings vehicles and financial variables, the book is crammed with information – perhaps TOO much information.

The chapters by themselves were structured well, but as a whole, the book didn’t flow from start to finish – more like it jumped around a lot – but the last chapter pulled all the information together. As a 30-something married woman,  it was hard to tell if the advice was geared toward someone my age, who has time to plan out a retirement strategy, or more toward folks who are closer to retirement.

Much of the financial advice is accompanied by charts, but it’s the practical advice that really got my attention. One chapter that really hit home was about health and life insurance in your retirement years, and how it can protect you, your family and your assets in the event of your untimely demise.  The authors also recommend drafting a will and putting together a file of all your financial documents or access information, and letting your loved ones know where to find it.

One point hammered home is the need to factor in cost-of-living allowances into your retirement plan.  Sure, you can say you’ll need to draw $30,000 a year from your savings after retirement, but the costs of living at age 62 aren’t likely to be the same at 72 or 82. Look how much the price of bread and milk has increased over the years, if you need a point of reference. The same goes for housing, taxes, food and clothing.

The book also emphasizes the importance of “not outlasting your money.” Of course, it’s relative to what your withdrawal rate will be – the higher the percentage of your nest egg, the faster your retirement savings will dwindle.

Perhaps the best chapter was “Informed: Separating Fact from Fiction.” Most people know the difference between short-term and long-term risk, but the authors point out a number of other individual risk factors: Market risk, inflation risk, interest-rate risk, liquidity risk, credit risk, currency risk and longevity risk. It’s important to understand how they affect your retirement investments and manage them accordingly.

Everyone’s financial situation is different, but the majority of working adults will tell you they plan to retire at a certain point in their lives. Getting your savings and investments on track to reach your retirement funding goals is something that everyone needs to think about – and the earlier, the better.

“Your Nest Egg Game Plan” isn’t so much of a “plan” as it is a compilation of things you need to consider when saving for retirement. Take away the gems contained within, and you’ll have a solid foundation for a savings plan that will last you through your retirement years.