Strategies for accumulating wealth receive much more attention than strategies for decumulating wealth despite the fact that, as the author of today’s article points out, nowadays the decumulation phase of one’s life can be just as long as the accumulation phase. He also acknowledges problems with safe withdrawal strategies, including the fact that there’s a good chance you’ll end up leaving money on the table when you die. Instead, he states, “If that’s not what you want — if your goal is only to spend as much as you can in your lifetime without running out — my calculations show that there’s a much better way.” For more, CLICK HERE.
Early retirement only works if you continue to make money in retirement…right? The author of today’s article challenges this belief, arguing that “it IS absolutely possible and in fact very easy, to make a chunk of money last through your lifetime. There is no magic or unusual risk or hope involved, it’s just plain math.” So, once you’ve accumulated a fixed chunk of money, how do you go about converting it into a safe stream of lifetime income? What don’t you need to worry about with this strategy? And what does the author point to as being “the absolute key to success in early retirement”? CLICK HERE.
“There are factors threatening your plans for lifetime income security,” cautions the author of today’s article, who further observes that, while some of these factors are nothing new, “others are relatively new, or are becoming more significant.” He proceeds to detail the five trends and factors that he sees as the “paramount threats” to the income security of those in – and those approaching – retirement today. What are these threats – and how can you adapt your retirement plan to mitigate their potential impact? CLICK HERE.
The retirement financing strategy highlighted in today’s article is sometimes referred to as “safety first” – a notion that may be taking on even greater importance for retirement savers in light of recent market gyrations. The strategy in question is the “floor-and-upside” strategy, where “the basic idea…is that a retiree devotes some of her retirement funding assets to building a lifetime stream of income and the remainder to an investment portfolio to provide liquidity and the possibility of increasing wealth over time.” For more on this strategy, CLICK HERE.
What’s the best way to ensure that your retirement funds will last as long as you do? A research team at Stanford sought to answer that question, and after analyzing 292 retirement income strategies, has identified what it believes is the best strategy – one which “produces more average total retirement income expected throughout retirement compared to most solutions… and provides a lifetime income, no matter how long the participant lives.” For the two key components of this strategy – dubbed the “spend safely in retirement” strategy – CLICK HERE.
“Is there a hybrid solution that can give you some of the lifetime income of an annuity, while offering the inflation protection and principal availability of an investment portfolio?” This is the question that the author of today’s article poses before examining one possible option in that regard: managed-payout funds. After delving into the managed-payout funds (and related investment products) offered by some big players, he provides an overview of the pros and cons of these retirement income vehicles. Are they really “one-stop shopping” for retirement income? CLICK HERE.