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Don’t Rely on Social Security or Pensions -- ‘Wealth Odyssey’ Explains Simple Retirement Saving Formula 

Between a rock and a hard place, Social Security and pensions are getting crushed. So what does a person do? Larry R Frank Sr., MBA, CFP^®, author of “Wealth Odyssey” explains.   PR#6

"Wealth Odyssey" Author Addresses Financial Planning Impact of Pension Changes

With pension changes on the horizon for many, Wealth Mentor and author Larry R. Frank, Sr. MBA, CFP^® offers tips on how to adjust plans successfully for future financial issues.   PR#2

In an environment of changing Social Security and pensions, learning to compensate is critical for financial success. What can you do about it?   PR#1

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Financial Planning Book Lays Out Big Picture

Wealth Odyssey is a nominee in the Finance, Investment, Economic category of the 2006 Independent Book Publishers Awards (aka the IPPYs). The IPPY rewards those who exhibit the courage, innovation, and creativity to bring about change in the world of publishing.

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Don’t Rely on Social Security or Pensions -- ‘Wealth Odyssey’ Explains Simple Retirement Saving Formula 

Between a rock and a hard place, Social Security and pensions are getting crushed. So what does a person do? Larry R Frank Sr., MBA, CFP^®, author of “Wealth Odyssey” explains.

Sacramento, CA (PRWEB) March 28, 2006 -- The old “three-legged stool” of the past is losing some of its legs and putting more and more pressure on people. Before, the combination of pensions, Social Security and personal savings in retirement plans were what people relied on for retirement. Nowadays, with pressures on Social Security and pensions, it has become even more important for people to focus on the third leg – personal retirement plans – those through employers and IRAs and Roths.

What is a simple retirement savings formula? How can a person judge if they are on track or not? The critical questions people need to ask is: “What is the savings formula?” The savings formula is the amount needed to retire (AMTR) times the withdrawal rate (WR) (called “Wealth Rule” in “Wealth Odyssey”) equals today’s Standard of Individual Living (SOIL), or SOIL = AMTR * WR. Therefore, SOIL / WR = AMTR. There you have it!

SOIL is today’s living expenses – everything you are currently spending to support your standard of living. The starting point is really what you earn – since most people spend all they earn. SOIL does not include what you are currently saving towards retirement. Now, to adjust SOIL for retirement, subtract what you are contributing towards Social Security; this equals your Retirement SOIL. How much of your Retirement SOIL is funded through Social Security benefits and pensions? Subtract these amounts from your Retirement SOIL and you arrive at your Unfunded Retirement SOIL. This is the first number for the simple formula.

The second formula number comes from the “Wealth Rule,” which is the percentage of how much you will withdraw each year to support your expenses. The website www.WealthOdyssey.com explains how to determine this based on your age; 5 percent should be the maximum, unless a qualified advisor has determined some other rate for you.

An example: SOIL is $64,000 income reduced by $4,000 contributed to a Roth, equals $60,000. There is no pension, and Social Security is estimated to be (from their annual statement from Social Security) $12,000. This means the Unfunded Retirement SOIL is $48,000. If the withdrawal rate is 4 percent (.04), then $48,000 divided by .04 equals their AMTR, or $1.2 million. What are your numbers? Everybody is different.

Now, a person knows how much they need to retire with to support today’s standard of living expenses. They can determine if they are on track by comparing how much they have currently saved to this – let’s say $250,000 between a Roth and 401k. So, they still need $950,000 before they can retire. How many years of saving do they have left? Only they know.

Now people can see what they lose in monthly pension or Social Security benefits, they must compensate themselves for that loss by saving more elsewhere – in their 401k, 403b, 457, IRA and/or Roth. How much more? Simply determine the Unfunded Retirement SOIL and do the simple math above.

Here is where it should hit home – people are not saving enough. What elements can they control? Certainly not the stock market! They can control how much they don’t spend, i.e., save more. And, they control how long they work (how long they save), health permitting. But save they must! Studies show that a person will have more money by saving more than trying to get a higher return on lower saving rates. By saving more, this actually helps reduce the problem. Saving more means the SOIL has also been reduced which means the AMTR is reduced as well. An example of this is at www.WealthOdyssey.com .

Today, more so than ever before, people need to understand how to balance their spending today with their retirement income needs of tomorrow. It is a matter of sustainable living. Most people have unsustainable standards of living. Between the lines, people need to understand the ramifications of changing Social Security and pensions. The common denominator for this balance is how much they save towards their AMTR.

With Social Security and pensions between a rock and a hard place, prudent people would save more and spend less in order to sustain their unique Standard of Individual Living into retirement. The world is changing – people need to change with it.

About Larry R. Frank Sr.

Larry R. Frank Sr., MBA, CFP^® has twenty-seven years of financial research and real-life experiences teaching people personal finance. Frank focuses on how to make smart decisions to grow and protect net worth - a simple change in perspective from income-centric to wealth, or net-worth-centric. Rather than make things complicated, his work focuses on simplifying personal finance for retirement planning. Frank has appeared on Global Talk Radio, Nationally Syndicated Radio, TV and Newspapers. He holds a Bachelor of Science cum laude in physics and an MBA in finance.

As it was released and appears online:

http://prweb.com/releases/2006/3/prweb364177.htm

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While People Fiddle, Retirement Planning Burns. Financial Issues, Part 2

Doing little vs. need to pay attention to Retirement Planning. "Wealth Odyssey" financial tips.

Sacramento, CA (PRWEB)  January 31, 2006 -- As Americans begin abandoning their financial resolutions for the New Year, their retirement planning goals go up in smoke. Their best intentions for the New Year have already reverted back to old habits - spending more and saving less. Wealth Odyssey, a new book by Larry R. Frank Sr., shows people how to find the balance between saving and spending.

Approximately 34 percent of Americans said they would set a resolution related to their finances; however, only 8 percent of those people actually achieved their resolution (including those resolutions not related to their finances) according to a random telephone survey conducted by Stephen Shapiro, president of Goalfree.com, with the assistance of Opinion Research Corp. of Princeton N.J.

Another study from the Yale School of Management and the University of Chicago found that staying focused on the commitment to the goal is key. “For example, opening a new savings account can suggest that a goal of saving more for the future is being actively pursued,” Frank said. “As a result, the person may feel justified on spending more on indulgences. However, the goal is to save more, not spend more – stay focused on the commitment to the original goal. The key to success is to think about the commitment to the goal, not progress made, in other words saving more, not just opening the account.

Wealth Odyssey and the accompanying website: www.WealthOdyssey.com, discuss how to determine one’s current Standard of Individual Living (SOIL) – their current level of spending. The book and website explain the relationship between income, net worth, and other financial topics, and how knowing this helps with the unknowns of the markets, economy, Social Security, and pensions.

“People must start to save more now,” Frank said. “Wealth Odyssey shows them how to simplify their retirement planning. The mere act of saving more lowers their current SOIL by that amount. This means they need to save less now since their SOIL is less. Ironic, or maybe not so ironic, but saving more helps make the goal more achievable.”

 According to the seventh annual Transamerica Retirement Survey, workers realize they have challenges ahead. Along with an increased awareness of retirement comes a dose of reality. For example:

- More workers now estimate that they will need to save more than $1 million on average to feel secure in retirement (33 percent in 2005 versus 25 percent in 2004).

- Workers have also increased their estimated retirement age; from a median of age 63 in 2004, to a median of age 65 in 2005.

- Confidence in retirement savings is down, with only 23 percent of workers feeling very confident that they will be able to retire comfortably versus 31 percent in 2004.

- 44 percent of participants don't believe they are building a large enough retirement nest egg. Of those, 67 percent say it is because they cannot afford to save more, while 16 percent say they are in too much debt to do so.

- Further, 24 percent of workers indicated that they don't know how much they'll
need to have saved for retirement while 33 percent of those who do know indicated that their estimated need was based on a guess.

"The drop in confidence is a sign that workers are realizing they are going to have to be much more proactive in preparing for retirement and recognize the challenges in doing so," said Catherine Collinson, retirement and market trends expert for the Transamerica Center for Retirement Studies. "Almost everyone needs further education on retirement savings and now is the time to approach the procrastinators who are still in denial."

Let's take the guess work out of retirement planning and make it simple so even procrastinators are eager to start. Moreover, Americans must start to put out the financial fires caused by so much inattention in the past. In order to retire, Wealth Odyssey answers this simple question: "What resources will it take in order to sustain my current standard of living; in order to sustain my spending?"

About Larry R. Frank Sr.

Larry R. Frank Sr., MBA, CFP^® has twenty-seven years of financial research and real-life experiences teaching people personal finance. Frank focuses on how to make smart decisions to grow and protect net worth - a simple change in perspective from income-centric to wealth, or net-worth-centric. Rather than make things complicated, his work focuses on simplifying personal finance for retirement planning. Frank has appeared on Global Talk Radio, Nationally Syndicated Radio, TV and Newspapers. He holds a Bachelor of Science cum laude in physics and an MBA in finance.

As it was released and appears online:

http://www.prweb.com/releases/2006/1/prweb334373.htm

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While People Fiddle, Their Retirement Plans Burn. Successful Retirement Planning From the New Book, Wealth Odyssey

With retirement on the horizon for many, wealth mentor, and author Larry R. Frank, Sr. MBA, CFP® demonstrates personal finance principals for how to plan for retirement.

Sacramento, Calif. (PRWEB via PR Web Direct) November 29, 2005 – With the odds of a lightning strike at 1-in-83,930, most people are waiting for one to light a fire and put them into action; to develop a prudent retirement plan.

For example, with the Social Security debate being delayed later and later and knowing that benefits are likely to be reduced, the sooner one adjusts and saves
more the better. Look at it this way, whether a personal account inside Social Security invested in the markets, or a personal finance approach, investing
directly in the market; either means putting more away to make up the difference. The sooner one starts on a retirement plan, the better. It takes less each month
when people give money more time to grow. There’s no need to wait and then rush to put out that fire. You know it is coming, so start now and save more.

"Our research indicates that 80% of investors recognize that they are not saving enough for retirement or are unsure of how much they need to save to meet their future spending needs," said James Norris, Principal, Vanguard Integrated Retirement Plan Solutions. People do not know how to determine a retirement plan aimed at seeing how much they need to sustain their lifestyle. In Wealth Odyssey Larry R. Frank presents an easy to follow personal finance method for finding out not only when people can retire, but also how much money they'll need in order to retire with. Will it be retirement at 60 or 70; or, the golden years under the golden arches?

First, Frank suggests people determine their Standard of Individual Living (SOIL) today. This is how much money needed to maintain their current lifestyle.
Subtract only retirement plan savings contributions, income and payroll taxes from gross income. This gives people their retirement standard of individual living. Then think about the personal finance income sources – Social Security, pension, current savings – available to maintain the current standard of individual living into retirement years. Chances are there will be a significant gap between retirement income sources and expenses.

Next, apply the “Wealth Rule” to this income gap – the unfunded retirement plan expenses. The wealth rule suggests thinking of the value of one’s assets as an
income stream used to bridge the gap between retirement income and expenses. In effect, assets bridge the gap between what is on hand and what one needs.

How much income will people need from their personal finance to maintain their current standard of living into retirement? When will people have collected the assets they need to retire? Answers to these questions determine when a person can finally retire. This establishes a personal retirement benchmark more relevant than impersonal market benchmarks. If this simple formula (or the very thought of a retirement plan) makes the head spin, read Frank's book. Frank addresses not only retirement planning,
but also broader issues in planning personal finance. Throughout the book, Frank encourages readers to focus on wealth, not income. In the 21st Century, it's not
what someone makes, but what he or she is worth. In fact, what one spends makes everyone else wealthy. Someone with a high income and a lavish lifestyle will wind up poor in retirement if they don't plan for it since the high standard of individual living is
unsustainable.

Finally, the above methodology does not require switching one’s thinking between the accumulation years and the distribution years. The same personal finance benchmark method of measurement – SOIL – is used between the two phases of retirement planning. The methodology also provides valuable insight into the effects on a retirement plan of bad markets, changing pensions, even changing Social Security.

Wealth Odyssey has been nominated for the 2006 Benjamin Franklin Awards, 2006 Financial Frontiers Awards; 2006 Independent Publisher Book Awards; ForeWord Magazine Book of the Year; Writers' Digest 13th Annual Self-Published Book Awards; Jada Press in their Third Annual Book of the Year Awards; and Writers' Notes Magazine Book of the Year; all in personal finance, business and economics categories.

If someone is looking for an inexpensive gift for the holidays, Wealth Odyssey is a great stocking stuffer. The book is available online at all major book stores or by special order at your favorite bricks and mortar bookstore. “Wealth Odyssey” shows people how to light the fire, get them into action, and control it properly.

As it was released and appears online:

http://www.prweb.com/releases/2005/11/prweb315720.htm

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"Wealth Odyssey" Author Helps Gauge the Financial Planning Impact of Market Declines

For those who have lost money in the markets, have stock market concerns or market fears and want to know how loss really affects retirement, wealth mentor Larry R. Frank's "Wealth Odyssey" model helps put things in perspective.

Sacramento, CA (PRWEB) October 18, 2005 -- Wealth Mentor and author of "Wealth Odyssey: The Essential Road Map for Your Financial Journey" Larry R. Frank, Sr. MBA, CFP^® has focused on research and on teaching people to make smart financial planning decisions for over twenty five years. He understands well that in a declining stock market, when people lose money, they feel this loss even more profoundly than when they experience gains.

Frank explains, "Behavioral scientists call this reaction loss aversion. Related to retirement planning, people feel this as a loss of their financial freedom. However, if you take a closer look at what a loss means, it may often not be as bad as it first seems, especially for, or in, retirement."

Frank's "Wealth Odyssey" places an emphasis on where to go financially instead of on how to just live for today, offering help and guidance to those who have lost money in a declining stock market.  Frank has developed a unique "Wealth Odyssey Road Map" (WORM) that works directly with his "Standard of Individual Living" (SOIL) model. In clear and concise language, he helps readers discover the best route to achieving their personal financial planning goals and to monitor their status through his "Progress Line." Frank discusses such topics as The Wealth Rule, The Earning-Spending-Saving Formula, Using Debt Wisely and Risk Management. 

With the information included in "Wealth Odyssey," he offers readers a greater understanding of what focusing on wealth, rather than income, can do for them and their families and how it can simplify living.  "Wealth Odyssey" defines wealth and why it is important to understand what wealth really is today: not income, but net worth. With this understanding, financial planning becomes much clearer.

"Wealth Odyssey" had been nominated for ForeWord Magazine’s Book of the Year Award, the Writer's Digest International Self-Published Book Awards, the Jada Press Third Annual "Book of the Year" Awards, as well as the Writers Notes Magazine's Writers Notes Book Awards; all in the Business or Business & Economics Categories.

Frank offers the following suggestions to keep in mind when evaluating a loss related to retirement money:

* Understand the Purpose of Money:  By relating to the purpose of money—to support your unique standard of living today and build wealth to support your standard of living tomorrow—you are better able to make good decisions for your financial future, and not react blindly.

* Know Where You Are: Your unique Standard of Individual Living (SOIL) is the real benchmark that you should use to determine the resources you need to support yourself and family. Otherwise, you're following someone else's rulebook or are using benchmarks and indexes unrelated to what you are really trying to accomplish. How does a stock market loss relate to your standard of living?

* The "Wealth Rule:" Apply the "Wealth Rule" from "Wealth Odyssey" to understand the impact of losses you may encounter. The "Wealth Rule" is derived from current, ongoing portfolio withdrawal research. Simply stated, a sustainable withdrawal rate from a retirement portfolio should not exceed five percent—a lesser percent would be better, more conservative. If you are going to withdraw five percent in retirement, then this helps understand the impact of a market loss. What does that five percent translate into monthly income? If the stock market declines, can your budget withstand this decline? If not, this is an indication you should rethink your allocation strategy to minimize a market decline. You can’t avoid a market decline because then you are likely structured to miss a market advance as well. Diversification is the key to this dilemma.

* Know Where You're Going: Innumerable variables out of our control will affect your retirement planning—knowing how to deal with the inevitable market changes and the effect on your plans will enable you to deal with them successfully and confidently. Frank explains the relationship between income and net worth and how knowing this helps with the unknowns of the markets, economy, Social Security and pensions.

"Everyone is looking for the formula that will lead them to financial success," Frank added. "There is a simple method and model developed by reverse engineering results of current withdrawal research, by taking the complex and simplifying it for practical application. The 'Wealth Rule' translates income to assets, and assets to income. Knowing this simplifies financial planning."

 Other tips for financial freedom, a.k.a. retirement, which are helpful:

* Know the Difference between Wealthy and Rich: Wealth is not measured by how much you spend, but by how much you have not spent. Wealth is sustainable with or without an income; wealthy is not being rich. Even those with a modest income are wealthy when they are able to sustain their unique standard of living while retired. Wealthy means you are self-supporting without an income: the definition of retirement in the 21^st Century.

* Remember that It's All Connected:  Rather than taking an income-based approach by tackling financial topics and issues one at a time until money runs out, adopt a wealth-based viewpoint where the landscape of financial topics are clearly seen to support each other and interact with each other through a net worth-centric model.  Financial decisions overlap and affect one another—know all the factors that will affect the real outcome of your decisions.

As it was released and appears online:

Wealth Mentor Offers Tips on How to Embark on "Wealth Odyssey"

In an environment of changing Social Security and pensions, learning to compensate is critical for financial success. What can you do about it?

Sacramento, CA (PRWEB) August 31, 2005 - Wealth Mentor and author of "Wealth Odyssey: The Essential Road Map for Your Financial Journey" Larry R. Frank, Sr. has focused on learning and teaching people to make smart financial decisions for nearly thirty years. Never has his expertise been more needed than in today's shifting and changing financial environment-concerns over the stability of Social Security and pension plans threaten the security of retirement. "Wealth Odyssey" offers tips to help Americans answer the question, "When and how can I retire?"

"Americans under the age of fifty-four are becoming increasingly concerned with the future of Social Security," Frank explained. "Members of today's workforce are beginning to realize that there may be reduced monthly Social Security checks in their mailboxes after retirement. Company pensions have, and still will, change. Thus, an easy way to determine the amount of money you need to save now in order maintain your standard of living later, and to be able to factor in changes easily, is absolutely imperative."

In "Wealth Odyssey," Certified Financial Planning™ Practitioner Frank provides resources for use in developing a personal roadmap for long-term financial freedom. Wealth Odyssey draws from Frank's real-life experiences in the financial industry, including tips and techniques developed from almost three decades of research and over eleven years teaching personal finance. Rather than make things complicated, his work has been to simplify the complexities of prioritizing simultaneous issues and their related calculations.

Frank offers the following tips to keep in mind when planning for your retirement:

* Understand the Purpose of Money: By relating to the purpose of money-to support your standard of living today and build wealth to support your standard of living tomorrow-you are better able to make good decisions for your financial future.

* Know Where You Are: Your unique standard of individual living (SOIL) is the real benchmark that you should use to determine the resources you need to support yourself and family. Otherwise, you're following someone else's rulebook or could be using indexes unrelated to what you are really trying to accomplish.

* Know Where You're Going: Innumerable variables out of our control will affect our retirement planning-knowing how to deal with the inevitable changes in Social Security or a pension and the effect on your plans will enable you to deal with them successfully and confidently.

* Remember that It's All Connected: Rather than taking an income-based approach by tackling financial topics and issues one at a time until money runs out, adopt a wealth-based viewpoint where the landscape of financial topics are clearly seen to support each other and interact with each other through a net worth-centric model. Financial decisions overlap and affect one another-know all the factors that will affect the real outcome of your decisions.

Frank's "Wealth Odyssey" places an emphasis on where to go financially instead of on how to just live for today. Frank has developed a unique "Wealth Odyssey Road Map" (WORM) that works directly with his "Standard of Individual Living" (SOIL) model. In clear and concise language, he helps readers discover the best route to achieving their personal financial goals and to monitor their status through his "Progress Line." Frank discusses such topics as The Wealth Rule, The Earning-Spending-Saving Formula, Using Debt Wisely, and Risk Management.

"Everyone is looking for the fool-proof formula that will lead them to financial success," Frank added. "I have developed a formula that can do just that by reverse engineering results of current research. I've seen it work for my clients, and now with today's issues, I'm sharing it with a broader audience."

With the information included in "Wealth Odyssey," readers will achieve a greater understanding of what focusing on wealth can do for themselves and their families. "Wealth Odyssey" shows Americans "where to go" with their money and leads them to a more secure future. "Wealth Odyssey" defines what wealth is and why it is important to understand what wealth really is today.

As it was released and appears online: http://www.prweb.com/releases/2005/8/prweb278996.htm

About the Author

Larry R. Frank Sr., MBA, CFP^® has twenty-seven years of financial planning research and real-life experiences teaching people personal finance focused on how to make smart decisions to grow and protect their net worth through a simple change in perspective; from income-centric to wealth, or net-worth-centric. Rather than make things complicated, his work has been focused around simplifying the complexities of prioritizing simultaneous financial planning issues and their related calculations. He holds a BS cum laude in physics and an MBA in finance. Frank resides in Rocklin, CA.

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