Author Box
Articles Categories
All Categories
Articles Resources

Book Summary - The Big Retirement Risk: Running Out of Money - Written by Erin Botsford

January 01, 2012 | Comments: 0 | Views: 163

One of Erin's team members sent me this book yesterday so I read it. I was a bit skeptical but Erin's real world experience going from a comfortable living to the poor house in one day hits home. How many times have you heard people say about their retirement - "I don't even open my statements anymore because I am scared to look at them." This book tackles that fear and more.

Why is this important to me?

I don't want to waste your time. If you are investing your time reviewing this summary then it has to be worth it for you. According to Dr. Maslow, people have a hierarchy of needs. The most basic need is that of security. Money may not buy happiness but it does buy choices and with choices comes freedom. If you were scheduled to retire in 2008 then you saw your 401K portfolio lose have of its value or more. Think about that impact for a moment. You spend 40 years working and saving your money and it takes all of three weeks to lose half of that savings.

Quality of Life needs to be part of any financial plan. There are several 50 to 60 year old people today who wanted to retire to a vacation home or travel that now are finding themselves having to work until they die. Fortune 500 executives are now greeters at Wal-Mart because a handful of people leveraged our financial system to the brink for a commission.

The Big Retirement Risk is packed with great information. For the sake of time, I will profile three main points.

1. Four Myths of Wall Street - 1.) Over the long run, the market always goes up. The biggest trick the devil ever played is convincing the world he does not exist. This is the same as the market always goes up. There are 20 to 30 year trends from 1900-2011 that the market was flat. Thus if that was your investment time, you lose. 2.) Diversification and Asset Allocation are critical to retirement success - Warren Buffet calls it De-worsification. Being invested in the stock market in different sectors is not diversification. 3) Major Financial Services firms give you options - The opposite is true because the level of expertise required for true custom retirement plans does not scale well. The risk is too great. 4.) Net worth determines your Lifestyle in Retirement - This is not true. The only thing that matters is positive net cash flow. You can have a car worth a million dollars and not have enough monthly cash to pay for the gas. Assets have to spin off monthly cash flow to be effective.

2. Lifestyle Investing - Erin has an excellent method of investing dealing with Needs, Wants, Likes and Wishes. The concept is so simple that it is brilliant. You lock in all your needs with a guaranteed investment return and then fund the other stages with different types of investments. The only investments that has guaranteed on it are U.S. Government Issues and Insurance products.

The retirement promises from big financial services firms and 401K plans are broken. "An estimated 47% of Americans born between 1948 and 1954 may not be able to afford basic expenses and uninsured health care costs through retirement." This brings us to our third point.

3. Guaranteed Retirement Income - Erin talks about the power of annuities after 1999. There are some strong arguments for using these types of products for your guaranteed retirement income. To divert a bit, I have employed the infinite banking concept for the guaranteed retirement income. This is by far the strongest way to build a solid nest egg and have full control of your money. Treating investing as a business is the true way to success. Both method use insurance products that provide a guaranteed investment return. Financial gurus who are in favor of mutual funds will pooh pooh this idea because the guaranteed returns may be lower than what the market returns in CERTAIN years. I can tell you from personal experience that the dot com crash and the 2008 Financial Meltdown did not affect my banking system yet some of my stock market investments went in the toilet. My guaranteed portion went unharmed.

The Big Retirement Risk shows you that survival of the fittest and nature dictate what happens in life. You need to prepare accordingly. Erin profiles in the last section 22 low probability / high impact events that you need to be protected from. That part alone makes the book worth reading.

I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is guaranteed returns. You need to research insurance products and find out if they will work for you. Also, understand the savings/investing strategy for Needs, Wants, Likes and Wishes is very important if you want a secure future.

Joe Mosed invites you to subscribe to to receive free video book summaries. Our vision at Success Progress is to provide relevant & meaningful content to our user community. To view the video summary of this article please visit

(c) Copyright - Joe Mosed / Success Progress All Rights Reserved Worldwide.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Book Summary


Free Book Summaries


Erin Botsford


Big Retirement Risk


Success Progress


Joe Mosed

Finding and collecting vintage comic books for fun and profit is something that is interesting, but can be difficult. With so many places to look, narrowing down the options can be painstaking, until

By: Jorge Orduna l Book Reviews > Comics Humor l July 07, 2012 lViews: 286

Action packed story that reads like you are there in person. Lieutenant Commander Andrew Carlson was a U.S. Navy Seal. He was as rough and tough as they come. He was part of a mission to be inserted

By: Cy Hilterman l Book Reviews > Mysteries Thrillers l July 06, 2012 lViews: 278

"Look Me In The Eye, If You Dare!" Okay, all of You "Internet Millionaire Moguls," I want some answers, and I want them now.

By: Travis L Perkins l Book Reviews > Internet Marketing l June 29, 2012 lViews: 311

Crush it is a great "How to" book on using social media and being real with yourself on what you do. Gary is very passionate about what he does. The key to his success is blending who he is with what

By: Joe Mosed l Book Reviews > Internet Marketing l June 29, 2012 lViews: 547

My resolution this year was to knuckle down and do something to bring in some new clients for my practice, so I was pleased to see that Internet Marketing Bible for Accountants looked like it might

By: Karen K Jefferson l Book Reviews > Internet Marketing l June 29, 2012 lViews: 296

When promoting your business online, are you using internet marketing? If you have yet to spread your branches into the online world, you ought to consider doing so.

By: Joyce McNeill Christopher l Book Reviews > Internet Marketing l June 29, 2012 lViews: 282

Many books have been written about how to make money doing what you love. This book reduces the process to just five steps.

By: Paul Lappenl Book Reviews > Personal Financel June 11, 2012 lViews: 167

The concentration of power the banks hold are at the levels of the great depression. When the balance of power swings too much in favor of the rich then bad things start to happen. This was

By: Joe Mosedl Book Reviews > Personal Financel March 29, 2012 lViews: 187

Trading is an interesting art form. Most of the theories in this book have to do with psychology of winning and losing. Research has shown that people are more emotional about losing money than they

By: Joe Mosedl Book Reviews > Personal Financel March 13, 2012 lViews: 198

In August of 2011 when I started searching for books to introduce me to the game of investing, stocks, and finances, Rich Dad Poor Dad stood out from the pack as the go-to book for an introduction.

By: Mike Earle Jonesl Book Reviews > Personal Financel February 08, 2012 lViews: 185

This book will help you keep more of your money. As you start generating cash, you need to protect it and shelter it legally. Statistics show that 34 cents of every dollar goes toward interest and 30

By: Joe Mosedl Book Reviews > Personal Financel January 18, 2012 lViews: 276

Endowments have an investment outlook of forever. They know how to avoid bear markets and bubble crashes. These endowments use sophisticated investment strategies to limit the risk and maximize their

By: Joe Mosedl Book Reviews > Personal Financel January 18, 2012 lViews: 288

Crush it is a great "How to" book on using social media and being real with yourself on what you do. Gary is very passionate about what he does. The key to his success is blending who he is with what

By: Joe Mosedl Book Reviews > Internet Marketingl June 29, 2012 lViews: 547

The basics of economics are supply, demand and scarcity. Economics best describes how to divide these scarce resources up amongst a growing population. Paul Pilzer takes a very different approach to

By: Joe Mosedl Book Reviews > Businessl June 25, 2012 lViews: 230

I love to study success and failure. Learning from others and controlling your associations are probably the two biggest keys to accelerated success. J. Paul Getty was an oil man and understood that

By: Joe Mosedl Book Reviews > Businessl June 25, 2012 lViews: 256

Customer loyalty is the gold standard to any business. Loyal customers have a higher life time value, refer more business and become advocates. They will not shop or leave you on price and they will

By: Joe Mosedl Book Reviews > Businessl June 25, 2012 lViews: 276

There are several schools of management thought and thousands of books on the subject. Management theory can get pretty deep and technical. That is probably why most of it does not really work. Do

By: Joe Mosedl Book Reviews > Businessl June 18, 2012 lViews: 192

Jim Clifton, the chairman of Gallup wrote a great book called the Coming Jobs War. In the book, he describes that one thing moves a society forward and that is people's willingness to work and the

By: Joe Mosedl Book Reviews > Businessl June 11, 2012 lViews: 252