Book review - "You're Fifty -- Now What?"

Reviewed by Ralph Wanamaker of Cape Girardeau

As I get older, I tend to pick up the business section more often to check on my two stock holdings. And, although my two stocks don't fluctuate much, I wonder if they'll be enough to get me through my retirement. Should I sell and buy more aggressive stocks? Will I have enough money to retire on? Will I be able to do some of the things I want to do when I finally retire?

Charles R. Schwab's "You're Fifty -- Now What? Investing for the Second Half of Your Life" attempts to answer those questions.

Schwab, whose discount investment firm changed the investment industry, takes readers on a step-by-step approach to first determine what they will need for retirement and then suggests investment plans to achieve those financial goals.

With expertise, he dispenses financial advice readers find easy to follow and understand.

Of the two realities of life: Death and taxes, Schwab urges readers to prepare financially to protect their assets after they die, and to take into account how taxes will affect their assets now and in retirement. Bluntly, Schwab suggests people should delay taxes on retirement plans for as long as possible and should try to avoid them altogether at death.

While death and taxes aren't pleasant topics, Schwab's view of retirement is positive.

In "You're Fifty," Schwab proposes methods of investing enough money to be able to do the things readers want to do in retirement, and with people living longer, possibly up to 40 years after middle age of 50, what they do now will be rewarded later.

To live comfortably in retirement, Schwab suggests, people decide how much of a paycheck they will need from their pension and other investment and retirement funds.

The book includes worksheets for readers to compute their net worths and their retirement needs.

After determining the need, the book offers types of plans for investment based on how readers think about investment.

Schwab walks readers through a variety of scenarios of how different investment instruments work and how they could be used for retirement.

He talks of load and no-load mutual funds, of index and managed mutual funds, of growth and value mutual funds, and the variety of funds by their company size -- large caps, mid-caps and small caps.

Readers will need a pencil and paper to read this book as Schwab directs them in calculating their personal needs and plans. First, readers are urged to take stock of their assets and current financial picture. From this starting point, readers determine what they will need over the retirement years. A discussion of how to use your retirement money over the long haul is addressed.

To Schwab, having enough money for retirement isn't about being rich or getting rich, it's about peace of mind, knowing he's provided for the people and things he's cared about during his life. He wants his second half of life to be as comfortable as his first half.

He said retirement isn't about being an investment wizard but about planning to maintain a lifestyle in the non-working years.

The book is divided into planning for retirement and into getting things in order for retirement. The first half discusses the investment options for the second half.

In the second part of the book, estate planning, wills, trusts, insurance and getting help from professionals are analyzed with readers' needs in mind.

Beyond the discussion on retirement, Schwab promotes planning to give something back to the community through charitable causes. In the book he presents the many options and advantages of giving back.

While the material at times is technical, the book is an easy and comprehendible read.

The appendix is used to present lists of places to get help, worksheets, tables and more detailed explanations of material covered in the general text.

Besides "You're Fifty' being an excellent guide to planning for the future, Schwab reveals a philosophy of what a good retirement can be. It's a positive strain throughout the book.

The book offers a gentle admonition to prepare now for retirement, then gives investment options to meet readers' retirement goals.

I think I'll give my broker a call.

Books for review are furnished by Barnes & Noble Booksellers at 3035 William St., 334-2996.