But it recommends a more finely sliced portfolio of 14 asset classes, including commodities, international real estate and stocks from emerging markets. Author Spencer Sherman, a certified financial planner in northern California and CEO of Abacus Wealth Partners, argues the added diversification enhances returns over time. Going beyond investing, Sherman devotes most of the book to the "emotional" aspects of money, including how it affects relationships.
Although not quite new - it was published last year - I'm re-reading "Spend 'til The End: The Revolutionary Guide to Raising Your Living Standard Today and When You Retire" (Simon & Schuster, $26).
Written by Laurence J. Kotlikoff, a professor of economics at Boston University, and Scott Burns, a semi-retired syndicated personal finance columnist, the book focuses on "economic lifecycle planning" and "smoothing out" your living standard throughout your life.
The authors argue strongly - I totally agree - against the simplistic conventional wisdom that you need a set percentage of pre-retirement income such as 70 to 85 percent to maintain your standard of living in retirement.
"The 70 to 85 percent replacement rate is dead wrong" if you don't take into account individual circumstances, Burns said. But such rules of thumb make it easier to sell financial products supposed to meet that goal.