Book Review: The New Retirementality by Mitch Anthony
Mitch Anthony is a sales consultant to the financial services industry. He's not actually an investment adviser, he teaches investment advisers how to get clients. His skill is in inspirational public speaking. If I had known this up front I would not have bothered to read this book. But it was interesting. "The New Retirementality: Planning Your Life and Living Your Dreams... At Any Age You Want (Third Edition)" was a bit of a hodge podge.
The first part of the book appears intended to help grasshoppers feel okay about not having saved for retirement. He comes at why this is okay from a bunch of happy angles. For example, he doesn't see why you can't just start now and get 15% return on your investments if you want to play it safe, or maybe 50% return if you care to gamble a little. Oh, did I mention, this was originally written at the top of the internet bubble in the late 90's?
And, hey, if investing isn't your thing, you can always sell your house at an enormous profit and move to a cheaper location. But, uh, he also suggests you keep your social circles intact. Maybe by cheaper location he means an apartment in your same town. (The second edition was written in 2003.)
His other main thrust is that it's perfectly fine to not save because you can keep working. After all, people really benefit from working. It helps their soul. All you have to do is find a vocation that you love and structure it so you can work part-time. He then goes into a few chapters stolen straight out of "What Color Is Your Parachute" to inspire you to go find a job that makes you happier. Because, he says, the workplace is so desperate for employees that they will gladly bend over backwards to accommodate aging baby boomers. (Did I mention that the most recent edition was written in 2008?)
But, anyway, to "retire" is to get sick and die. (He has a causation vs. correlation problem here, in my opinion.) Instead of being incapacitated by old age, though, he suggests that it is way better to stay vibrant and young, which you can do by continuing to work. And don't you worry none about social security imploding. This is the baby boom we're talking about, and they are rule-breakers! Not ones to let simple math get in the way! No one dare defy the Baby Boomers when they want something. So relax. Take a cruise now if you want. You'll be fine later.
Then he goes into a section on "Your Money and Your Life" which is radically different than the excellent "Your Money or Your Life" by Robins & Dominguez. Mitch Anthony's point is that you shouldn't care about Return on Investment - which he says is outside your control - but instead be concerned about Return on Life. I kind of liked this, to be honest. He said not to be a gerbil on a wheel, but rather to use your money as a sail on the boat taking you places. He said that a good return on life meant:
I agree that you need to have a vision of what you want out of your life, and harness money to achieve that vision rather than just accumulate money for the sake of money alone.
He also had a nice section on "Maslow Meets Retirement" where he asks you to identify the part of your budget that is:
He also gets into a section on "Money Maturity" that appears to have been cribbed from George Kinder's "Seven Stages of Money Maturity". At this point I'm being impressed that he has read all the same books I have. I liked his section on "wealth-care checkup". He says to watch your balance, or else:
The theme emerging here is that you don't need to save for retirement, you just need to find a job you love, stay healthy and age well, and not worry about material things. See? The New Retirementality. Oh, and have an extra $250K stuck aside for health care spending you're really going to want to do, and maybe another $50K to help your centenarian parents when they run out of money. But, hey, other than that kick back and relax. Except when you're at work. Work hard then. Because you've got shit-all to fall back on. But don't worry, be happy!
Oddly, I did get some business management tips from the section on how to find a good employer. I might write those notes up as I'm probably going to be hiring some staff next year (as I work hard getting set up for retirement) and can always use more tips on managing employees.
The first part of the book appears intended to help grasshoppers feel okay about not having saved for retirement. He comes at why this is okay from a bunch of happy angles. For example, he doesn't see why you can't just start now and get 15% return on your investments if you want to play it safe, or maybe 50% return if you care to gamble a little. Oh, did I mention, this was originally written at the top of the internet bubble in the late 90's?
And, hey, if investing isn't your thing, you can always sell your house at an enormous profit and move to a cheaper location. But, uh, he also suggests you keep your social circles intact. Maybe by cheaper location he means an apartment in your same town. (The second edition was written in 2003.)
His other main thrust is that it's perfectly fine to not save because you can keep working. After all, people really benefit from working. It helps their soul. All you have to do is find a vocation that you love and structure it so you can work part-time. He then goes into a few chapters stolen straight out of "What Color Is Your Parachute" to inspire you to go find a job that makes you happier. Because, he says, the workplace is so desperate for employees that they will gladly bend over backwards to accommodate aging baby boomers. (Did I mention that the most recent edition was written in 2008?)
But, anyway, to "retire" is to get sick and die. (He has a causation vs. correlation problem here, in my opinion.) Instead of being incapacitated by old age, though, he suggests that it is way better to stay vibrant and young, which you can do by continuing to work. And don't you worry none about social security imploding. This is the baby boom we're talking about, and they are rule-breakers! Not ones to let simple math get in the way! No one dare defy the Baby Boomers when they want something. So relax. Take a cruise now if you want. You'll be fine later.
Then he goes into a section on "Your Money and Your Life" which is radically different than the excellent "Your Money or Your Life" by Robins & Dominguez. Mitch Anthony's point is that you shouldn't care about Return on Investment - which he says is outside your control - but instead be concerned about Return on Life. I kind of liked this, to be honest. He said not to be a gerbil on a wheel, but rather to use your money as a sail on the boat taking you places. He said that a good return on life meant:
- I'm living well within my means.
- I'm investing time, energy and resources in those I love.
- I'm allowing myself to have experiences and live whenever possible.
- I'm saving with discipline.
- I'm not comparing my progress to others who live with a different set of circumstances.
I agree that you need to have a vision of what you want out of your life, and harness money to achieve that vision rather than just accumulate money for the sake of money alone.
He also had a nice section on "Maslow Meets Retirement" where he asks you to identify the part of your budget that is:
- survival,
- safety
- freedom (hobbies, travel)
- gifting,
- dreaming.
He also gets into a section on "Money Maturity" that appears to have been cribbed from George Kinder's "Seven Stages of Money Maturity". At this point I'm being impressed that he has read all the same books I have. I liked his section on "wealth-care checkup". He says to watch your balance, or else:
- Physical rest becomes laziness
- Quietness becomes noncommunication.
- The enjoyment of life becomes intemperance
- Physical pleasure becomes licentiousness
- Enjoyment of food becomes gluttony
- Self-care becomes selfishness
- Self-respect becomes conceit
- Cautiousness becomes anxiety
- Being positive becomes insensitive (his term, mine would be "oblivious")
- Loving kindness becomes overprotection
- Judgement becomes criticism
- Conscientiousness becomes perfectionism
- Interest in possessions of others becomes covetousness
- Generosity becomes wastefulness
The theme emerging here is that you don't need to save for retirement, you just need to find a job you love, stay healthy and age well, and not worry about material things. See? The New Retirementality. Oh, and have an extra $250K stuck aside for health care spending you're really going to want to do, and maybe another $50K to help your centenarian parents when they run out of money. But, hey, other than that kick back and relax. Except when you're at work. Work hard then. Because you've got shit-all to fall back on. But don't worry, be happy!
Oddly, I did get some business management tips from the section on how to find a good employer. I might write those notes up as I'm probably going to be hiring some staff next year (as I work hard getting set up for retirement) and can always use more tips on managing employees.