Share this Page URL

Introduction > Introduction - Pg. xiii

Introduction xiii We'll also explore and demystify the world of investing so anyone can invest with confidence. Our promise to you: If you start early enough and follow our advice, there's an excellent chance you'll reach your retirement goals (and we'll even make you a millionaire along the way). How Is This Book Going to Help You? We thought making you a millionaire was a good start, but just in case you wanted more, read this book. It will help you answer questions like ... · · · · How much money will I need in retirement? How much should I be saving? How should I invest? What's Social Security going to provide? And once you get the answers, this book takes you through the next important steps, helping you to ... · Understand that if you don't save now and save enough in your 401(k), you'll probably never retire. · Cut your state and federal income tax bill--today! · Get Uncle Sam to subsidize your retirement, today and when you're retired. · Use a 401(k) or IRA to achieve your other financial goals. · Figure out if your company has a good 401(k) and how to get one started if it doesn't have one. · Use recent changes in the tax law to save more money and to increase your chances of retiring early. How We've Organized This Book The book is organized in five parts. Each part builds on the one before it. So if you're prone to jumping around and fast-forwarding to the end of a book to find out "whodunit," you may get a little lost. Hang in there and be patient. You'll enjoy the book more and learn a ton in the process if you follow our lead. Here's what's in store for you. Part 1, "The Basics: What You Need to Know"--The world of retirement plans in general, and 401(k)s in particular, can be very confusing. After all, these plans were created by acts of Congress and are wrapped up and governed by very complicated laws, rules, and regulations. Guess you have to be a lawyer to figure them out, right? Wrong. Everything you need to know, we are going to teach you. This is actually pretty tame stuff, once you have it explained in plain English. This book is stuffed with answers to just about every question that's ever been asked about 401(k)s. And after we're done, you'll be able to answer your own questions with confidence. Our first three chapters explain how 401(k)s came to be, the rules that drive 401(k)s, how to understand what is going on in your 401(k), and a straightforward way to determine if your plan is being run on the up-and-up--some- thing many of us need to know to sleep at night. Part 2, "Savings," is the whole reason 401(k)s exist in the first place. We'll explain how to set realistic retirement goals and then show you how to use our worksheets to build a retirement plan using your very own 401(k). You'll also learn what happens to your 401(k) when you leave your employer (voluntarily or not). And what happens if you can't pay back that loan or live up to your alimony or child support payments (that's a no-no!). You'll also be brought up-to-date on the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), how to use the new IRA's that are available, and when an IRA might be better than a 401(k).