Overview Of Retirement Income Planning – Part One
Strong disagreements exist about how to position a retiree’s assets to best meet retirement goals. Two fundamentally different philosophies for retirement income planning—which I call probability-based and safety-first—diverge on the critical issue of where a retirement plan is best served: in the risk/reward trade-offs of a diversified and aggressive investment portfolio, or in the contractual […]
Wade Pfau Releases New Book on How to Spend Money Wisely in Retirement
Wade Pfau’s latest book gives much needed insight into how retirees can spend money in retirement without constantly worrying about going broke.
The Difference Between ‘Safe’ and ‘Optimal’ Withdrawal Rates for Retirement Spending
Distinguishing between “safe” withdrawal rates and “optimal” withdrawal rates is an essential piece of the retirement spending conversation.
Taking Portfolio Spending Into the Real World for Retirees
There has been too much emphasis on the portfolio and spending conservatively to keep failure rates low. This is not the whole story for retirement income. Certain circumstances, which we will explore, may allow retirees to accept a higher probability of “failure,” and spend more aggressively from their investment portfolio.
What Can the Retirement CARE Analysis™ Tell You About Your Retirement Plan?
The Retirement CARE Analysis can help you figure out your asset allocation and an appropriate spending rate for retirement.
The Possibilities of Broader Diversification in Retirement
Often, retirees are limited to accepting whatever a researcher assumes about market returns in order to obtain guidance about sustainable spending rates. I proposed a general framework for determining a safe withdrawal rate for a given retirement duration, acceptable failure probability, asset allocation, and capital market expectations.
Should You Use a Rising Equity Glide Path in Retirement?
Retirement income comes in many forms. Wade Pfau considers the pros and cons of a rising equity glide path.
What’s the Most Appropriate Planning Age for Retirees?
The relationship between how long you’ll live and your sustainable spending rate is a big piece of the retirement planning puzzle.
Which Makes More Sense for Retirees: A Total-Return or Income Portfolio?
Total-return investing focuses on building diversified portfolios from stocks and bonds to seek greater long-term investment growth.
How Can I Manage Sequence Risk in Retirement?
Sequence of returns risk is a major concern for even the most well-prepared retirees, but there are steps you can take to manage it.
