The 7 Best Books to Read When Starting to Think About Retirement

With so many great options to get educated about retirement today (like this blog) it may seem counterintuitive to pick up a book. However, something about a book in the hand helps the knowledge seep in. I have spent thousands of dollars on books and continue to spend on them as I truly believe the ROI is in the millions.

So take a look below at some of my favorite retirement related books with a brief overview of each. I hope to have full-length reviews of each of these on retirement nut soon.

1 – How Not to Get Rich – The Financial Misadventures of Mark Twain by Alan Pell Crawford

When you understand that Twain’s writing success was a mere fluke on the search for riches, your entire life will make a little more sense. The overarching theme of the book is that many investment fads come and go over the course a life, like new and exciting technologies, and one should stick to what they know. The book is a hilariously fun look at Twain’s life with a sobering effect to ensure you double down on what works for you and hopefully save a bit more for retirement (and maybe hold off on that house renovation, as it cost Twain almost everything).

2 – The Simplest Path to Wealth by JL Collins

The Simplest Path to Wealth advocates a self directed approach to investing and focusing on low cost index investing. Key takeaways from the book include avoiding debt and saving now and to invest today in order to spend later. This book has many relevant stories and simplified financial advice – more importantly its written by someone who walks the walk. Whether you want to learn more about each type of tax-advantaged retirement account (401k, IRA, Roth IRA) or more about asset allocation (we try to avoid bonds here), this book is a great read.

3 – Simple Wealth and Inevitable Wealth by Nick Murray

A book that deserves wider recognition and I am happy I stumbled upon it. Nick Murray argues that the key to building long term wealth is owning businesses not bonds. This aligns perfectly with what we preach here at Retirement Nut and was some of the basis for the foundations we teach here. Additionally, he talks in depth about behavior and how our behavioral decisions around money can affect the net outcome. Overall it’s a solid read to get you thinking differently about retirement.

4 – Rich Dad Poor Dad by Robert Kiyosaki

This book has launched many real estate careers and is still a bestseller today though it was written over 20 years ago. Though some of the information can be easily refuted with what we know now, I think the key concepts of the book, like making your money work for you, is the key to successful retirement planning. This book dives deeply into this concept, which is the key to having your nest egg grow to a size-able sum by retirement.

5 – The Millionaire Next Door by Thomas J Stanley

Taking a look at what we preserve as millionaires (on social media) and those whom are actually millionaires is great validation for taking the long road. By focusing on living below their means (not the lawyer in the nice car with the nice suit he cannot afford), and focusing on building wealth, this book is great at opening one’s eyes to the reality of the world and what it takes to be financially sufficient for the future. By just helping show that millionaires are in fact some of the thriftiest, it reaffirmed my beliefs in investing 50% of my take-home income and avoiding flashy expenses that drain the bank account. Overall, an eye-opening must read.

6 – The Automatic Millionaire by David Bach

This read focuses on paying oneself first and more importantly, automating that process so it is a dummy proof. Once you begin the path to saving, this book refers to compound interest to prove the point that your nest egg grows. This book leaves the reader wanting more in terms of retirement advice, but covers the saving part in entirety. With today’s awesome technology, automating has never been easier and this book is a great refresher to help with that. The author also makes reference to the “latter factor,” which is a simple expenditure that adds up annually – think: a Starbucks latte. That small expenditure can result in well over a million by retirement. By simply cutting this out, one’s goals can be easier achieved. This actually motivated me to cut out a few of my Starbucks weekly adventures and make lunch from home a few more times a week (dollars make sense, right?).

7 – The Richest Man in Babylon by George Samuel Clason

A book that makes retirement a story – you can’t beat that. I found this book a great introductory read to retirement and growing ones money. The setting of the story is in ancient times, with each chapter outlining a specific theme. Touching on concepts like controlling your expenditures and multiplying your income, but in very simple examples not amplified by technology. One of my favorite quotes is as follows; “Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.” Suggesting that the smart and researched investor will prosper over the long term. These lessons can be taken and applied to one’s life to ensure frugality and long term retirement success.

Photo by walknboston