Safety-First Retirements Are Expensive with Low Interest Rates!

By Wade Pfau, Ph.D., CFA

I’ve made a table that pretty much speaks for itself. The table provides some idea about how expensive it can be to build a safe retirement portfolio with TIPS. But even this is not completely safe, since the TIPS ladder only lasts…

Retirement Planning Guidelines: An Alternative to the Trinity Study

By Wade Pfau, Ph.D., CFA

Recently I wrote about the famous Trinity Study for developing guidelines about sustainable withdrawal rates to avoid outliving your wealth. I wrote about their portfolio success rates concept. Their approach results in tables like this: Today, I’d like to suggest an alternative…

Are Annuities (SPIAs) Okay When Interest Rates are Low?

By Wade Pfau, Ph.D., CFA

Readers of my last blog entry, Annuities and Delayed Social Security, provided many valuable comments, prompting me to now write a follow-up post. Most of the discussion centered on a chart showing the relationship between annuity payout rates and interest rates. That…

Safe Withdrawal Rates and Life Expectancy, Part 2

By Wade Pfau, Ph.D., CFA

I apologize for borrowing the post title from Mike Piper’s Oblivious Investor Blog, but I can’t come up with any better name.  I see that this topic of combining safe withdrawal rates with life expectancies is pretty popular. Just a reminder, I…

Guidelines for Withdrawal Rates and Portfolio Safety During Retirement

By Wade Pfau, Ph.D., CFA

A lot of retirement withdrawal rate studies are very repetitive and do not really offer anything new.  There are many variations of the Trinity study, which looks at success rates (or the corresponding failure rates in the case of today’s article) of…

Getting on Track for Retirement

By Wade Pfau, Ph.D., CFA

I have finished a new article called, “Getting on Track for a Sustainable Retirement: A Reality Check on Savings and Work”. This paper can be downloaded from RePEc. It is scheduled to be published in the October 2011 Journal of Financial Planning.…

Safe Savings Rates: A New Approach to Retirement Planning over the Lifecycle

By Wade Pfau, Ph.D., CFA

“Safe Savings Rates: A New Approach to Retirement Planning over the Life Cycle.” (As featured in The Economist) This article is in the May 2011 issue of the Journal of Financial Planning.  Should that link stop working, a draft version of the paper…