How Much Income Do I Need in Retirement?
Most people are focused on saving for retirement so they’ll have the money they need to fund their income in retirement. However, ask most people how much they’re going to spend in retirement and they have no idea. To plan for retirement effectively, you need to have some sense of what your spending needs are actually going to be.
Charitable Planning – Leveraging Those Gains
The IRS encourages charitable giving by classifying donations to qualified charities as tax-deductible. As a result, it’s possible to “do good, while doing well.”
What Does Your Funded Ratio Score Mean?
By providing your financial objectives and the ways you want to fund them with essential and discretionary expenses, you can create a framework. Your Funded Ratio score will tell you how close your aspirations are to your reality.
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.
Do Bonds Help Diversify Your Investment Portfolio?
Diversification is a good thing. It’s the only free lunch in finance.
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.
The Dangers of Putting Our Faith in Statistics
Statistics are great and all, but just because the numbers say something will happen doesn’t make it the gospel truth.
