Retirement Income Flexibility
Handle with CARE: 5 Years Before Retirement
Rather than developing an exhaustive list of to do’s that may or may not be appropriate for everyone, our approach is to help the client develop a retirement framework for retirement or way of thinking about retirement. We call this the “CARE” retirement framework and it will help you build a foundation for a successful retirement.
Read MoreHow 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.
Read MoreWhat 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.
Read MoreThe 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.
Read MoreTaking 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.
Read MoreWhat 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.
Read MoreThe 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.
Read MoreShould 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.
Read MoreThe 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.
Read MoreWhich 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.
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