Blogs & Comment

New Rules of Retirement: review

It would be hard to find a more appealing cover for a book than the one on New Rules of Retirementby William MacKenzie and Ken Hawkins (financial advisors at Second Opinion Investor Services Inc. based in Toronto). That early-morning picture of two wooden lawn-chairs on a dock overlooking a shimmering lake inspires such a relaxing frame of mind.

Several reviews of the book have been done by other blogs and some media outlets. You can find those reviewsat the books website.
One thing that I particularly liked came at the end: the rich and extensive list of online resources for persons near or in retirement. The same list is availableon the books website, where embedded links can take a surfer to the sites in no time.
There is a good discussion in Rule 7 of what time horizon to use when planning for retirement. For example, according to Table 2.5, a 55-year-old male has a 50/50 chance of living to 80 whereas a 55-year-old female has the same odds of living to 85.
Also useful was the discussion of government retirement programs in Rule 12. Ill certainly be checking out the Canada Retirement Income Calculator.
Learning about investment products for retirees in Rule 33 was enlightening. With annuities, one doesnt have to worry about longevity risk i.e. outlivingsavings because they guarantee an income for as long as one lives.
What could have been done better in the book? Igot bogged down a bit in the plethora of statistics from the surveys on retirement issues. The chartered banks, Statistics Canada and other organizations have certainly done a lot of retirement surveys!