How should you invest your money? Should you contribute to your company’s 401k, put the money in a Roth IRA, or just buy mutual funds? Can you expect to receive any money from Social Security when you retire? How much of your retirement money will the IRS take in taxes? These are the important questions Rick Rodgers expertly answers in “The New Three-Legged Stool” with clear explanations, followed by concise, practical instructions for making the most of the money he has. This tax-efficient approach to retirement planning is one that readers will refer to again and again.

“The new three-legged stool” refers to the three types of investments you need to have and balance properly to support your retirement. These three investments are tax-deferred savings, after-tax savings, and tax-free savings. Rodgers takes the reader through an explanation of why each of these types of savings is important, how to invest in it, and how to withdraw the money for maximum benefit in retirement. Tax-deferred savings include company 401(k) plans and IRAs (including SEP and SIMPLE plans). After-tax savings include mutual funds, bank and brokerage accounts, and investment real estate—anything that isn’t technically a retirement account. Tax-free savings are Roth IRAs and Roth 401(k)s that have no immediate tax benefits. Rodgers spends considerable time explaining the pros and cons of these investments and why a healthy balance should be struck between all three.

One of the greatest strengths of “The New Three-Legged Stool” is the examples it offers in the form of stories from various retirees. The book opens with “The Funniest Story Ever Told” about a successful businessman with an estate valued at over $4.4 million. Because the man never consulted a retirement planner or put in the effort to do estate planning, when he passed away, his children ended up paying 85.8% of his father’s retirement account in taxes! Many more examples of retiree experiences are illustrated in the book, often comparing two people’s strategies to see which ends up being more beneficial.

In addition to telling readers how to manage their money under current IRS tax laws, Rodgers provides an explanation of how the IRS works, why it tries to get as much money as possible, based on the government’s failure to the US to manage your money properly and the origins of Social Security, as well as the looming crisis that by 2017 more money will be withdrawn than is contributed annually to Social Security.

Rodgers closes with tips on finding a good retirement advisor and doing estate planning, including writing a will or setting up a trust to protect your hard-earned money so you have enough for the rest of your life. your life and money left over for your heirs Several helpful charts accompany the discussions, illustrating how much money a person will need to live on, based on current income, retirement age, expected longevity, and when a person chooses or must earn income from multiple accounts retirement benefits, including Social Security. .

Rick Rodgers has produced a much-needed, well-organized, easy-to-read, and refreshingly short (202 pages) book that will give readers much to think about and plan for, and to which they will return again and again. I hope that Rodgers will update the book as time goes on so that current and future readers can equally benefit from it as tax laws change.

Rick Rodgers is well qualified to provide advice on tax-efficient retirement planning. A twenty-five year industry veteran, he has published numerous investment articles in publications such as Wealth Manager, has been a guest on radio and television shows, and has been quoted in “Investment News” and “Smart Money” magazines. In 1996, he founded Rodgers & Associates “to help families build and preserve their wealth in preparation for carefree and dignified retirements.” To learn more about Rick Rodgers and “The New Three-Legged Stool,” or to contact him for personal investment assistance, visit http://www.TheNewThreeLeggedStool.com