Don't Die Broke: Library Edition

Rating:
Summary: Reader from Santa Cruz is misinformed.
Review: As the author of Don't Die Broke, I stand by both points that the reader from Santa Cruz challenges. 1)Federal estate tax does indeed go as high as 55%. 2)If you inherit tax-deferred retirement plan assets, you will owe federal and state income tax when you take the money out.

The example I use on p. 244-45 shows how high these taxes can go at the extreme. If the inheritance is part of a smaller estate, if the inheritance accounts for some/all of the deceased's $675k estate tax exclusion, or if the heir falls into a lower income tax bracket, the total tax bill could be lower -- around $442k vs. $728k on $1Million -- but still a substantial sum.

I stand by the accuracy of the text. Part of the disbelief expressed by Reader from Santa Cruz strikes to the heart of why I wrote this book. The subject is complicated, and the taxes can be onerous. If you inherit a large IRA, 401(k) or other tax-deferred retirement plan, don't spend the money until you've paid a visit to your accountant.

Rating:
Summary: A practical, step-by-step, effective approach
Review: In Don't Die Broke, Margaret Malaspina offers a careful, practical, step-by-step, effective approach to ensuring proper and profitable management of money. Here is a wealth of useful advice and counsel on making money last, avoiding the need to spend retirement years worrying about financial security. The reader will learn how to turn assets into income; create a monthly paycheck from savings, stocks, and other financial resources; avoid making irreversible mistakes with retirement savings; understand a company's retirement plans, individual retirement accounts (such as the new Roth IRAs); transfer wealth to heirs; and minimize taxes on retirement savings. Don't Die Broke is "must" reading for anyone seeking relief from financial stress in their retirement and eventually being able to leave something to loved ones.

Rating:
Summary: This book is a lifeline...highly recommend it
Review: Like so many of my friends, my husband's and my focus has been all about reaching some magic number that would say, ok,now it's safe to retire without going broke... We gave not a thought to how we'd manage the money afterwards. But then we began to hear rumors ... you must do this, you can't do that, and panic set in. Finally, after reading Ms. Malaspina's book, we understand what's really going on (better than we did after talking to our accountant!). I've given this book to friends and even a cousin who was 69-1/2 and didn't have a clue about the need to start drawing on certain retirement savings. This book should be required reading for anyone over 50. Thanks, Bloomberg Press!

Rating:
Summary: A Solid Effort!
Review: Many rules and regulations govern pension plans. The technicalities are complicated and change constantly. People can make irrevocable errors doing something as simple as moving assets from one plan to another. Margaret A. Malaspina cuts through retirement plan red tape and explains the jargon. She shows you how to get to your money after you have worked hard to save it. This book demystifies your options and clarifies the consequences of your choices. The author makes reading about taxes relatively painless. We at getAbstract recommend this book to anyone planning retirement, switching retirement plans, or withdrawing retirement funds. However, because of its discussion of United States tax law, it is not useful to those in other countries.

Rating:
Summary: Excellent Treatise On A Very Complicated Topic
Review: Margaret Malaspina has done an incredible service to the taxpaying world in her book. As a Certified Public Accountant, I can attest to fact that dealing with the Internal Revenue Service Code is an extremely difficult process. She has consistently dealt with this complicated and very confusing subject and de-mystified it in a way that heretofore has never been done. As more and more assets of American citizens are finding their way into retirement accounts, the timing of this book is perfect. What might appear to be some type of simple election or investment decision can backfire in terms of significant additional taxes. She attempts and succeeds in identifying these problems and proposing appropriate solutions. I have read it thoroughly and have recommended it to my clients and friends.

Rating:
Summary: Don't believe the subtitle
Review: The subtitle is "Taking Money out of your IRA, 401(k), or other savings plan-- and creating lasting retirement income, but there's precious little useful how-to here. There's basically one chapter (9) that deals with the details of setting up a withdrawal plan and the advice boils down to "go find an investment advisor". Most of the book is spent explaining 401ks, IRAs, workplace plans, etc.

It's my own fault, though. Next time I'll read the TOC before buying!

Rating:
Summary: Don't believe the subtitle
Review: The subtitle is "Taking Money out of your IRA, 401(k), or other savings plan-- and creating lasting retirement income, but there's precious little useful how-to here. There's basically one chapter (9) that deals with the details of setting up a withdrawal plan and the advice boils down to "go find an investment advisor". Most of the book is spent explaining 401ks, IRAs, workplace plans, etc.

It's my own fault, though. Next time I'll read the TOC before buying!

Rating:
Summary: Makes the unreadable quite readable
Review: This book was a great surprise. I didn't expect to like it, mostly because I hate the very thought of retirement planning and I approach the subject kicking and screaming. Yet it is time, and this book has been an enormous help. It makes the subject at least accessible, if not downright friendly.

I note that my enthusiasm differs from the reviewer from Austin, and I'm not sure why. It's true that not every page of "Don't Die Broke" is focused on "How to turn your retirement savings into lasting income" (the tag line on the book's cover), but I didn't have a problem with that. The bottom line is that a few mistakes in the retirement planning area can be very costly, and this book is first and foremost about avoiding those mistakes.

A final thought. Only a few readers have given reviews so far. Is that because we're retiring types after all?