Retirement Countdown

May 17, 2004
Shapiro, a personal finance columnist and financial planning trainer, believes that many people don't plan for their retirement. The process intimidates people, or they're lulled—by the media or other authors—into believing they can do all the planning on their own. Shapiro advocates using financial planners and, more importantly, taking small careful steps. The book is divided into three parts, beginning with an overview of retirement. The second discusses specific investments like annuities. The third explains the various types of financial planners and how they are compensated. Shapiro coins the term GORP—goal-oriented retirement planning—and counsels readers to focus on their priorities. Throughout the book, he uses case studies to provide specific guidance to readers who can identify with people in similar situations. For instance, for an older couple who would like to take several long vacations each year, Shapiro divides their savings needs based on their income and other expenses. Much of this book is useful, especially for readers who aren't comfortable with financial terms and have not been involved in planning for the future. Each chapter has a "power checklist" and cautionary boxes to help readers focus their strategies. However, the author's argument gets bogged down in his use of mountain climbing as an analogy to financial planning. The book's focus on retirement is sufficient without such extraneous references.