Retirement GPS: The In-Depth Book Review

By | January 28, 2014

Are you thinking about your retirement portfolio? Have you got plans in place? This book might make you reassess what you have originally planned. This isn’t a book that is going to be read and left to collect dust on the shelves; it is going to become a book that is a friend. You will turn to it to answer questions or to think through some new ideas.

Retirement GPS

Retirement GPS By Aaron Katsman

Retirement GPS: The concept

The idea of this book is to explore your options in the investing markets in a way that is different and not the usual approach. Here Katsman looks at the options that are available to you from a global perspective.

You are taken through the concept of expanding your portfolio through to different areas of the world which are making great returns on income invested in their markets. It is not about taking more risk; it is about using your capital wisely to make the best of your money.

One area of the book that I loved that describes the need to take action is the section on ‘The biggest financial mistakes retirees make’ (page 4), it looks at some of the common ones like if you are not happy with the service that you are receiving then why are you staying with that investment company. It is your capital that they are investing and if you believe that they are not getting the expected figures then you need to question why. What could be done differently? Moving investment companies is the top option here.

Katsman refers to the organization skills that are often lacking with retirement accounts with many different accounts spread about and not a proper plan in place to manage the entire portfolio. How do you know what you are doing if you have no plans in place to manage the entire portfolio, this will lead to miss opportunities and a lack of focus in the whole of the portfolio.

With this clear and easy to read section at the beginning of the book it made me stop to think of the message that was beginning to come through earlier on. It is though you are told to stop and think about what you are doing, assess your situation now because you could probably be grouped into at least one of the areas that Katsman refers to in these first few pages.

As with all investing it is important that you have access to money in the everyday world which you are able to access without needing to touch your investment portfolio. This piece of advice is something that you are hearing about a lot at the moment and it will depend on the amount that you are looking to keep in liquid accounts. There are many people that are considering reducing the amount that they are now keeping in these emergency accounts due to the poor rate of return that you are getting. With the interest rates as low as they are it seems a shame to put too much capital into these accounts. This money is not working for you at all; in fact they could be costing you. The low rate of interest coupled with the rate of inflation the money that you have sitting in these accounts could be worth less than the previous year.

But you do need to have some; you can’t take the money out of your investment portfolio it needs to stay there so that it is able to grow your portfolio to the required amount that you have specified in your investment plan.

Life and what you need to do

There are great investment firms that are available to help you generate the income that you are looking for. Retirement is something that you need to plan for and not think that you will be fine with no plan in place.

As with your investments you need to talk to those people that are looking after your investments and Katsman looks at this as an important aspect. There is no point in putting an investment plan in place that should yield expected results in ten or fifteen years, and expect that life will travel nicely along. What will happen are just normal life events and these need to be mentioned when you talk to your investing company, tell them the changes that you are going through because they might need to adjust some of the portfolio and the outcome that you are hoping to obtain in the next few years. Your investment company are not going to know these changes that are needed unless you are forth coming with the information.

How the global markets can help

If you are looking to retire living off interest whilst keeping the capital so that it is able to continue to support them you the comfort that you are looking for, then you need to plan now.

This is where the options for looking into the global markets are going to help, there is no way that you are going to get the interest rates in America for the return that you would need. This is where that you could possible look at the options around the world, there are options that are paying better returns than what you can get in America and you should be open to these ideas.

Some of these investments are going to have the low risk options and these are normally found in bonds. It is still important that you are doing your research as well on these companies because there is the possibilities that you could potential lose your capital, all investments carry a risk.

Your options

Katsman has gone through many options that are open to you in the investment markets. He goes in-depth in to the different areas that are open to you in the global market, when you are thinking about bonds you are not limited to the one country you have the option to pick and choose the area that you want to invest in. This is true with the ETF’s they are found all over the world and they give you some of the best options of trading in the different markets and areas.

But what is also important is that you consider the people that are doing the trading for you, if you have the time, training and a limitless supply of capital and you feel that you want to go alone, then by all means try, but if you are looking to protect your capital and to hopefully have the possibility of having capital growth with your investments then it is always a great idea to think about getting professional help. They are trained and qualified to do the job for you, they are going to know the global markets and they can talk you through your options on how you are going to make your money work harder for you. It is especially important if you are going to go global with your investments that you are dealing with a professional who knows what he is doing.

This book is going to give you this and more, a highly recommended book that you will continue to use for understanding your options in the global markets. It will make you think about your priorities and your retirement plans in reference to your investment portfolio. Once you start reading this book it will be hard to put down, it will quickly become a favourite investment book with great practical advice that you will truly appreciate.




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