How to Retire Young and Rich

Book How to Retire Young and Rich

Turn Today's Fantasy into Tomorrow's Reality with This Complete Planning and Survival Guide

Warner Books,




  • Applicable
  • Well Structured
  • For Beginners


Joseph S. Coyle offers basic advice for people pondering retirement. The book outlines straightforward strategies for saving and investing, and urges investors to start early and to put as much as they can into 401(k) plans and IRAs. So much for the obvious. Coyle also offers specific and useful guidelines for buying mutual funds and allocating assets. He realistically presents issues you may face in retirement, such as the emotional difficulties involved in leaving a career and having enough money to support your lifestyle (so buy a bond instead of that snazzy watch). Some of the book’s basic advice will seem redundant to sophisticated investors, but the more detailed information will intrigue even them. recommends this book for anyone looking for guidance about saving and investing for retirement. [ note: The investment advice here - tax laws, stock markets, and what not - is extremely U.S.-oriented, although the lifestyle information is broadly applicable.]


Start Saving Early

Basic tenet of truth Number One: To live well in retirement, start saving early. If that is all you get from this book, and you do it, you are already ahead of the game. If you’ll retire in thirty-five years and you save ten percent of your earnings a year, you’ll have enough money to retire. But if you wait until you’re twenty-five years from retirement, you’ll need to save twenty-one percent of your pay to reach the same level. Do the math; start now.

In addition to starting early, savers must keep four other key concepts in mind:

  1. Inflation is your constant enemy. Always keep its effects in sight.
  2. Growth investments, namely stocks and stock mutual funds, are the only way to regularly outpace inflation.
  3. Compound interest is a saver’s great ally. Here’s an example: $10,000 earning interest at eight percent a year in a tax-deferred retirement account would be worth $21,600 in ten years, $46,600 in twenty years and $100,627 in thirty years.
  4. Self-reliance is the key to personal finance. Americans no longer can rely on Social Security and pensions to provide for them during...

About the Author

Joseph S. Coyle is the longtime editor of Money magazine, a personal finance expert, and an award-winning journalist.

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