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SPECIAL INVESTOR'S ISSUE: RETIRE RICH 2005

You're on Your Own (And That's Okay), by Justin Fox, page 18
Retirement is changing, and what worked for earlier generations—corporate pensions and social security—may not work for future generations. "You have to pilot your own ship, find your own safe harbor," says FORTUNE editor-at-large Justin Fox. "But getting there will require saving, planning, thinking, taking risks, and possibly continuing to work past retirement age." FORTUNE's annual Retirement Guide offers advice on how to pull this off, with straightforward stock market advice; a seemingly audacious proposal for cashing in on the real estate boom; a portfolio of overseas retirement locales; a guide to do-it-yourself IRAs; an outline of the biggest risks to your retirement security; and a profile of guru Ken Dychtwald.

The FORTUNE 40: The Best Stocks to Buy Now, by David Stires, page 22
FORTUNE's annual portfolio of top picks has been given an overhaul. The original methodology identified stocks with strong year-ahead appeal, but not all of them were solid long-term holdings, with the result that each year's list had a different batch of stocks. So the methodology has been altered, allowing the list to have appeal well beyond the next 12 months. To pick the stocks, FORTUNE studied the strategies of some of the world's greatest investors and market scholars, and selected five whose techniques could be replicated using professional-caliber stock screens. The mix of approaches led to a well-rounded portfolio with domestic and foreign stocks, small and large.

Living the Golden Years Without the Gold, by Geoffrey Colvin, page 34
A barrage of changes threatens to reverse a 50-year trend of declining poverty for elderly people. The personal savings rate, around 11% in the 1970s, is less than 1%. About 40% of workers say they are saving nothing for retirement, and other traditional sources of retirement income are evaporating. "Put all those factors together," says Geoffrey Colvin, "and it seems unavoidable that some future retirees—and highly noticeable minority numbering in the millions—will fall into poverty. At least they will unless the federal government rescues them. So will it?"

Get Real About Your Future, by Julia Boorstin, page 37
Retirement planning isn't rocket science, but it isn't as easy as it used to be. Among the challenges: a stagnant stock market, low interest rates, and looming cutbacks in Social Security and private pensions. To help readers sort through these difficult issues, FORTUNE's Julia Boorstin assembled a panel of top-flight investment thinkers. While their overall outlook is sobering, they offer valuable guidance that can lead to a prosperous retirement, despite the obstacles.

Pitchman for the Gray Revolution, by Nicholas Varchaver, page 43
For author and speaker Ken Dychtwald, a historic realignment is on the horizon. He sees the creation of a whole new multi-decade stage of life, which he has dubbed "middlescence"—a period that offers rich opportunities for reinvention and exploration. Along with that, he argues that the linear view of life—birth, school, work, rest, death—is starting to give way to a cyclic approach in which people might return to school in midlife, try a new career, travel, then repeat the whole process in a new field. And, reports Nicholas Varchaver in his profile of Dychtwald, it's the baby-boomers who will form the vanguard of this transformation.

Five Threats to Your Financial Security, by Cait Murphy and Julia Boorstin, page 48
A host of financial planners and other investment pros FORTUNE consulted warn that even the most diligent savers and savviest investors may face serious threats to their financial health—ones they may not have fully factored into their retirement planning. FORTUNE presents five of the most significant threats—lower stock returns, inflated inflation, piddling interest rates, a Medicare disaster, and longer lives—along with advice on how to counter them.

Brainstorm, by Benoit Mandelbrot and Nassim Nicholas Taleb, page 54
The problem with commonly used measures of risk is that they are built upon the statistical device known as the bell curve. This means they disregard big market moves, focusing on the grass and missing out on the (gigantic) trees. Rare and unpredictably large deviations such as the collapse of Enron's stock price in 2001 or the spectacular rise of Cicso's in the 1990s have a dramatic impact on long-term returns—but "risk" and "variance" disregard them. Benoit Mandelbrot and Nassim Nicholas Taleb look at how the finance gurus get risk all wrong.

Paradise Found: Where to Retire Abroad, by Ellen Florian Kratz, page 56
Still nursing a dream of retiring in the sort of place you go to on vacation? FORTUNE found five idyllic places—San Carlos de Bariloche, Argentina; Dubrovnik, Croatia; Boquete, Panama; Mérida, Mexico; and Phuket, Thailand—where you can still live like a king on what you've saved.

FEATURES

The Little Aircraft Company That Could, by Russ Mitchell, page 64
Mauricio Botelho is a business legend in Latin America. When he took the controls of Empresa Brasileira de Aeronáutica—Embraer for short—in 1995, the company was near death. Effectively bankrupt and in disarrary, it had been sold to private investors by the government the previous year. Now Embraer is widely considered one of the most successful privatizations anywhere in the world and one of the aerospace industry's strongest performers. Mitchell looks at how Botelho rode the regional-jet market up, up, and away.

The Dogged Scientist, the Old Lab Vial, and the Quest to Stop Cancer, by David Stipp, page 71
The wait between a drug's discovery and its approval is usually well over a decade, and often longer. Most experimental drugs fail, and world-class researchers can spend their entire careers working on flop after flop. But once in a while this landscape of frustration is lit by an intense glow. To understand the traps and hurdles that next-generation medicines must survive on their way to market, David Stipp looks at the story of PTK, Novartis's experimental cancer drug, and tells the tale of an arduous, often-frustrating, decade-long journey that could lead to a new product—or no product at all.

FIRST
Does This Look Like a Slowdown? China has reined in spending, but the world's fastest-growing economy may be too dependent on exports. A Fugitive Boss Faces the Music Accused of masterminding Korea's largest corporate fraud, Daewoo founder Kim Woo-Choong returns home after six years to perform a standard ritual of contrition. Finally, Some Good News for Pakistan General Musharraf finds himself where no previous leader of his country has gone before: presiding over a booming economy. The World At Risk Hot spots, economic fault lines, and events that might have an impact on global risk. Question Authority Tod's CEO Diego Della Valle talks about the luxury goods market, Chinese counterfeits, and why red doesn't sell. Picture This Neve Dekalim, one of 21 Jewish settlements in the Gaza Strip set to be evacuated in August.

FORTUNE is the global leader in business, known for its unrivalled access to industry leaders and decision-makers throughout the world. FORTUNE's European edition, based in London, is dedicated to covering European business from a trademark global perspective. With a European circulation of 105,000 and a worldwide circulation of 1,020,000, FORTUNE is one of the fastest growing magazines in the world. Founded in 1930, FORTUNE has grown to a worldwide circulation of over one million and a readership in excess of five million.

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For further information please contact:
Emma Gilpin
Director of Public Affairs
TIME & FORTUNE Group
T: +44 (0) 207 322 1193
Email: emma_gilpin@timeandfortune.com

Azmar Sukandar
Senior Public Affairs Manager
FORTUNE Asia
T: + 852 3128 5185
Email: azmar_sukandar@FORTUNEinc.com

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