Your nest egg game plan

Overcome everyday and long-term challenges. Develop extraordinary outcomes. Add Book To Favorites. Save Not today. Format ebook. ISBN Author Margaret McCraw. Publisher Career Press. Jump to ratings and reviews. Want to Read.

Buy on Amazon. Rate this book. Phil Fragasso , Craig L. If you have an employer-sponsored pension plan, you're among the lucky few. Traditional pensionsin which retirees were guaranteed an income for lifeare a thing of the past. They've been replaced by k and IRA plans that shift the burden of building and managing a retirement nest egg to the employee. The scary part is that most of us are woefully unprepared to handle this responsibility.

Using simple language, the authors provide an easy-to-implement framework to design an investment program that will provide the benefits of a traditional pension planwhile offering the flexibility that retirees and pre-retirees demand. Ibbotson Associates, an independent research and financial consulting firm specializing in asset allocation and portfolio construction, has developed a graphical depiction of the interrelationship between human capital or intellectual capital and financial capital.

Over time our human capital gradually declines and is supplanted by our ever-increasing financial capital, or saved assets. There are three reasons for this. The first is the recognition that retirees still have plenty of knowledge, experience, and skills to contribute to the greater good of their families and communities.

Part of that conversion process is represented by the salary we earn and part represents the accruing of lifetime income benefits in the form of Social Security or a traditional pension plan. Ibbotson has calculated the future value of these Social Security and pension payouts and incorporated them into the value ascribed to human capital at age The third reason is that 65 is a totally arbitrary retirement age. Many people choose to continue working full-time or part-time long past age 65 and, whether we choose to do so or not, we have the human capital to further increase our financial capital.

As we move into middle age the focus changes to accumulating Investable assets. Retirement still seems far away, but college tuition looms large right around the corner. Diversification becomes paramount, and the two certainties of life -- death and taxes -- take on a new perspective. This is the stage when lifestyle decisions and investment temperament play a major role in how you manage and juggle your savings and expenses. Temptation is everywhere as the media bombards us with marketing messages trying to separate us from our hard-earned dollars.

And the decisions we make at age 40 and 50 have a profound impact on how we live in our 60s, 70s, and beyond. These monetary decisions are quite similar to the choices we make in other aspects of our lives.

For example, many of us are choosing to eat healthier and exercise more.