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Forget the 4% guideline in these low interst rate times

Based on past investment returns a 1994 study found one could expect their retirement assets to last 30 years if they took out no more than 4% each year, adjusted for inflation. If you aren’t familiar with the 4% guideline for withdrawing assets in retirement, search for 4% rule in this blog. The problem with…

To ease stock-turmoil jitters, try these strategies

Writing for The Wall Street Journal (3/9/20), Anne Tergesen interviewed Dr. Wade Pfau, a leading investing researcher and professor at the American College of Financial Services. For investors far from retirement, there is no need to panic but now is a good time to review your asset allocation. But for those nearing or in retirement,…

Single Premium Immediate Annuity vs. "Safe Withdrawal" Strategy

“Economist and mathematician Michael Edesess compares a “safe withdrawal” strategy from a 60/40 stock-and-bond retirement portfolio with a single premium immediate annuity of the same value. He found the SPIA offers retirees a bigger monthly payout and decreases their chances of running out of money.” Author/researcher Michael Edesess explains:“A safe withdrawal rate is the percentage…

Sequence of Returns Risk in Retirement

Many have heard that it is “safe” to spend 4% of one’s nest egg (adjusted for inflation) each year in retirement, expecting funds to last for a 30 year retirement.Michael Kitces explains both the up and down side risk:https://www.kitces.com/blog/url-upside-potential-sequence-of-return-risk-in-retirement-median-final-wealth/There are many reasons for adjusting one’s spending during a lengthy retirement rather than expecting to spend…

How to spend just the right amount in retirement

“Retirees tend to gravitate to opposing poles in how they spend their nest eggs, with some too parsimonious and others too carefree. The best course lies somewhere in between, as Steve Vernon explains” in Forbes.The Spend Safely in Retirement Strategy is simple enough that you can implement it on your own.1. optimize your social Security benefits.2.…