Book Review: The New Savage Number

Right now, it is no surprise that many people are worried about retirement. The good news is that Terry Savage offers some practical advice when it comes to figuring how much you really need to retire. She calls this the “Savage Number”, and it has been a guide for many. Now, thanks to the changing economic climate and the new realities of finance, Savage offers an updated way to work out how much you need for retirement. Her book, The New Savage Number, provides you with the tools you need to plan for a prosperous retirement.

Be warned: The New Savage Number is not for the faint of heart. Savage is well-known for her investment savvy, and as the first woman trader on the Chicago Board Options Exchange (as well as being a founding member of that exchange). Her book includes numbers and even Monte Carlo modeling. However, she addresses how the numbers and modeling work, and renders them understandable. But sometimes it makes for heavier reading.

Overall, though, The New Savage Number is a comprehensive look at how you can figure out how much money you need for retirement, and develop a plan to meet your goals and needs. The book starts out by looking at the reality of retirement, and addressing the relationship between time and money. There is also a chapter on key questions you need to answer about your retirement, and possible life expectancy.

Savage then shows you how to use Monte Carlo modeling to help you plan your retirement, and looks at how you can create a portfolio of investments to grow your retirement funds, as well as how much you can realistically expect from Social Security. The New Savage Number also addresses long term coverage, and how to get the protection you need, as well as estate planning.

Bottom line: The book may seem a little intimidating at first, but Savage takes you through what you need to know, and helps you plan out a route to a retirement that you can depend on.