60 • MARTIN H. RUBY
Market risk : Will the market return enough for you to grow your retirement account? Will you lose money every time the mar- ket crashes? If you choose a safer savings vehicle, will you get any growth on your money at all? Tax risk : Will your taxes be higher or lower in the future? Will you need to pay taxes on all the growth in your retirement ac- count? How will taxes impact the dollar amount of income you’ll be able to spend in retirement? With our second New Rule of Retirement Saving, we are going to look for strategies that overcome all three of these risks. But first, I want to introduce you to my daughter, Rebecca. Her talent is political communication. Do you ever see con- gressmen and senators talking on Fox News about the issues of the day? Rebecca wrote those talking points. My daughter inherited many things from me, including my stubbornness and inquisitive mind. About three years ago, Rebecca came to me with a question: she was switching jobs and didn’t know what to do about her 401(k). Like a good saver, she had been putting money away for retire- ment since her first paycheck. She was now thirty-five. Unfortu- nately, her new job didn’t offer a match, and she wasn’t sure how much to save or what to do. My Daughter Meet my oldest daughter, Rebecca. There were two main questions she had, and they should be the same questions you are asking yourself right now: How much do I need to save? And, what vehicle should I use to save it? Over several hours, I went through an exercise with her to an- swer these two questions. In much less time than that, I’ll go through the exercise with you as well.
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