The Worried Boomer book review and free copy giveaway
“No pension? Not wealthy? Here’s YOUR plan!”
Those are the words from The Worried Boomer, Derek Foster’s sixth and latest book in his portfolio. Unlike the rest of Derek’s books, Canada’s Youngest Retiree, this book takes a different approach. Instead of focusing on dividend paying stocks, dividend reinvestment plans and other tools for investors in their accumulation stage of life, this book focuses on baby boomers, asking them to take a more holistic view of their financial situation if they haven’t done so.
Like other Foster books, this one is easy to read. The Worried Boomer is broken down into three main parts:
- Part I – Lights
- Part II – Camera
- Part III – Action
Unlike what some financial advisors inform clients, Foster suggests you don’t need to shoot for a “retirement number”. “Why should you measure how much money you need to retire differently than how you measure what you need to live on today?” Foster suggests what you need for retirement is “a dependable income” to live from – and I think he’s right. Instead of focusing on some portfolio value number, it’s likely worth stepping back first and looking at your financial situation; figuring out what you spend today and what future expenses you’ll have in retirement. This section sets the tone for the rest of the book.
In this section Foster introduces the reader to a series of spending and saving ideas. He asks the reader to take a critical look at current income and current expenses, to ensure you’re not spending more than you earn. This is a good process for most people to do, baby boomers aside, since Derek argues many people probably don’t know the answer. It also encourages you to save money by spending wisely since it can make a huge difference over time and Derek uses many examples to make his point.
Probably the best part of this section is Derek’s list of retirement risks. In no particular order they are:
- Running out of money
- Inflation eating away at your spending power
- Financial crisis/stock market crash
- Financial protection of family members
- Unforeseen financial calamity
Derek goes on to share how investors can equip themselves with a financial plan to mitigate these risks and his top choices all make good sense. Part II concludes with a few more chapters, a couple of them entitled “A pension plan for you, even if your employer doesn’t offer one!” and “Your basic retirement checklist.” This checklist reflects what many financial advisors preach:
- Be totally debt-free and mortgage-free
- Have a reliable income that covers basic living expenses
- Have additional income which covers FUN
- Have some cash or short term deposits in case of emergencies
- Have some stocks to protect against inflation
- Have some money left over to give away to charities or family members
In order to paint your retirement picture Derek feels it’s important to have an idea of what you want. To help you out, Derek has included a few worksheets to get those retirement wants down in black and white. The next step is to define what your expected passive pension income might be, whether it’s from defined contribution, defined pension, Canada Pension Plan (CPP), Old Age Security (OAS) or a combination of these. After looking at other investments, such as RRSPs and TFSAs, you should now have an idea of what your expected income from pensions and savings will be. Hopefully Derek says, the expenses in your retirement do not exceed your retirement income projections. “If so, you’ve got some work to do!” Luckily, Part III provides an actionable workbook for boomers who haven’t done these assessments yet.
As the title suggests, this book was written for boomers who are close to retirement age and to simplify some retirement elements that sometimes are made overly complicated by the financial industry. For boomers who are already savvy investors, who know how to manage their self-directed portfolios and have been doing so for decades, this book might not tell you anything new. For other boomers who are not sure what government benefits they may be eligible for or worse still, wondering if they can retire at all, this book is worth reading. Derek has done a good job putting some retirement principles into plain language and has included some actionable worksheets in The Worried Boomer to get you thinking clearly about the next phase of your life.
Are you a Worried Boomer about retirement?
Do you know a Worried Boomer?
Want a free copy of The Worried Boomer?
I’m giving away a FREE copy of this book thanks to Derek Foster. Enter directly below or click “Read more”!
My husband and I are both boomers about to retire. And we are a little nervous about it. Is there a chance that you still have a copy of this book by Derek Foster?
Your review has me interested! Thanks.
Unfortunately the contest is over Patricia but stay tuned to my site in 2013, I have more giveaways for readers!
I heard Derek Foster recently sold his home and moved into an RV. I know you follow him somewhat closely. Know anything about this?
I only signed up for his newsletter recently so I don’t have many details. I really like DF’s approach to FI and am trying to emulate it, as you know.
Any details on his recent move would be appreciated!
I’m not quite a boomer, but I’m very excited about reading this book! I’ve recently read his first book and am about to get my personal financial plan started… at 42. The part I like the most about his approach is that Derek himself didn’t have a large income during the process.
Just squeaked under the wire wrt the OAS changes but can always learn more – have read much of what Derek has written to date. Having been frugal for years, and holding only dividend paying stocks since taking control of our investments has meant we’re doing fine in terms of retirement income without a pension.
Would welcome another book on the subject.
A lot of free giveaways on different blogs 🙂
I know a worried boomer. In fact my Dad retired last fall and was so bored he went back to work. I know for a fact I won’t have that problem when I retire!
Derek has a talent to explain complex concepts in down to Earth simplicity so that “an idiot” can understand what he means. I doubt there will be lots of new things to learn from this book, but I sure will enjoy reading it. The examples he gives can be used in conversations with family/friends/colleagues and they will understand me better because the message is easier to grasp when it is delivered in Derek’s words. Thanks for creating a contest.
You’re welcome for the contest, good luck!
I need to read this… !
I may not be a boomer who is close to retirement but it sounds like this what I need to read in my thirties so I can set myself up for success.
My parents are really worried Boomers! My mom told me a few weeks ago that they planned on my dad having to work til he is 70! Booo! So I would love for them to have a copy of this book!! Thanks for the opportunity!
Would love to get that book for my mother!
Seems like a great book!
Hope I win but if not, will watch for the book on the next trip to Chapters. Good luck everyone.
Good review. Good luck everyone.
Nice review MOA! Question: Is this book focussed primarily for Canadians or is the advice applicable to US residents as well?
The book is focused primarily on Canadians, but the worksheets can apply to U.S. residents as well.
Sounds like just the book I am looking for, thanks for the info
Thanks for the opportunity to win the book!
Sounds like a great book. Since Derek stopped working at a regular job, he has been though at least two financial crises. Financial crises seem really bad when they occur, but so far for me they have worked out ok and it would seem the same has happen for Derek.
Even the savvy soon to be retired booms might take comfort from reading the book.