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Offers financial advice for people planning their retirement on how to invest and withdraw money. Rejection of all-bond portfolios and all-stock investments; Suggestion that people arrange their portfolios with 60 percent invested in U.S. and international stocks and 40 percent in five-year tax-free municipal bonds; Presentation of three money withdrawal strategies; Statement that managing money in retirement is problematic.

Presents tips on how to manage your 401(k) retirement plan, and explains how recent changes in legislation and product offerings could influence your choices. Reasons why 401(k)s are starting to look more attractive; Observation that lower taxes on capital gains and dividends make tax-deferred retirement plans somewhat less valuable by comparison; Examples of firms like Morningstar and Financial Engines that will create a balanced portfolio for your 401(k) at a relatively low cost; Explanation of how a plan offered by Vanguard Investments works; List of the characteristics of a good plan, including the number of mutual fund choices and fees; Advice to be aware of employer contributions.

The article looks at how entrepreneur Cassandra Mack managed her investments and retirement plans. Ivory Johnson, director of financial planning at the Scarborough Group, convinced Mack that she needs to start investing and planning for her retirement. Mack has a six-figure retirement account, a college fund for her child, and a plan for the future. She set up her company up as an S corporation to avoid being taxed at a higher corporate way.

Focuses on the investment strategy adopted by African American couple Michelle and John Rooks. Importance of hiring a financial advisor; Factors to consider in financial planning; Way in which the couple supplemented their retirement earnings.