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Looking ahead to retirement? Depending on your circumstances and your age, you may no longer have any margin for error. And your emotions and irrational behavior could be perpetuating a dangerous cycle of overspending and rising debt that may shatter whatever vision of retirement you still have. Welcome to the world of Retirementology.
Retirementology bridges retirement planning with investor psychology and the market Meltdown of 2008 to produce an entirely new way of thinking about how we spend, how we save, how we borrow, and how we invest. Financial mistakes are deeply rooted in human nature, but you may be able to overcome them--if you understand the breakthrough principles of behavioral economics and apply them in your own retirement planning.
Dr. Gregory Salsbury identifies some of the classic cognitive biases and behavioral mistakes most of us keep making when it comes to retirement planning. For example: Why will people drive 45 minutes to use a $2.00 coupon? Why won’t people sell a poor performing stock just because they inherited it from grandma? Why do people spend differently with a credit card than they do with cash? Why do people believe that they paid no income taxes because they received a refund? You’ll learn why the financial meltdown has amplified the impact of these all-too-human cognitive mistakes and discover ideas for addressing them.
The bottom line for your bottom line is that retirement can no longer be ignored, viewed as a single event, relegated to a “zone,” or romanticized. Instead, you must understand how every spending and financial decision you make from here on can impact the way you will spend your golden years. Retirementology attempts to help you do just that.
Retirement planning: right brain versus left brain
Why these different areas of the brain impact financial decisions--and what to do about it
It’s real money! “De-layering” your finances
How to overcome the psychological tricks that separate you from your money
Family matters: managing financial support decisions for your extended family
Choosing between your family or your retirement
Get “long-term smart”
How longevity, inflation, volatility, and your own expectations impact your retirement goals
Salsbury (But What If I Live? The American Retirement Crisis\n) takes the burgeoning field of behavioral finance a step further by applying it to retirement planning during an economic downturn in this relevant, much needed book. He helps pre-retirees and retirees identify classic mistakes in earning, spending, saving, investing, and borrowing. With playful neologisms retirewent, damnesia Salsbury re-educates readers on how to prepare for their golden years during an insecure time, paying solid attention to the role one's home plays in relation to retirement, financial support for family members, tax liabilities , and health care. Of particular interest is a chart identifying common financially unhealthy traits such as procrastination and overconfidence, the consequences of such traits, and the way to rethink these traits to turn them into positives. A superb introduction to the necessary financial planning no American over 40 can afford to ignore. \n