There’s no magic formula for investing. The financial markets seem to take some sort of cosmic joy in bringing people back down to Earth. And it’s value investing’s turn – in fact, it’s been value investing’s turn for a while now. To put it mildly, this has been a rough decade and a half for value stocks.
It is important to understand from the very outset how changing risks are primarily what separate retirement income planning from traditional wealth management. Retirees have less capacity for risk, as they become more vulnerable to a reduced standard of living when risks manifest. Those entering retirement are crossing the threshold into an entirely foreign way […]
Many people do not consider charitable gifting strategies to help optimize their retirement plans, though they might benefit their overall plans.
This case study illustrates the safe savings rate concept using someone saving for retirement during the final thirty years of her career, and she earns a constant real income in each of these years.
The relationship between stock market valuations and sustainable spending rates has great implications for retirement planning when we consider how the pre-retirement savings phase and the post-retirement withdrawal phase can be linked through the stock market valuation level at retirement.
At a basic level, the answer to this question relates to whether one is taxed at a higher marginal tax rate now compared to when one will be withdrawing these dollars in retirement.
Those already late in their careers who are thinking seriously about retiring in the coming years may have been interested in the “safe savings rate” concept, but be left wondering how to apply it to their own personal situations. This new paper provides the answer about how to do this.