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.
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.
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.
Using Target-Date Retirement Income Funds To Guard Against Interest Rate Risk In Retirement
Dimensional Fund Advisors (DFA) takes a more direct approach to immunizing retirement liabilities through their target-date retirement income funds. These funds provide a useful case study for understanding the role bond funds play in meeting retirement expenses.
What Are Annuities?
Annuities are like power tools. In the right hands, they can help you considerably, but if you don’t know what you’re doing, you could cut your fingers off.
Your Retirement Number Is Meaningless
Retirement is this big unknown for so many folks, that when someone offers to nail it down to a concrete number, of course people will line up. The only problem is, it’s meaningless.
How Much Wealth Will You Have 30 Years Into Retirement?
Thus far, we have compared the historical performance of various spending strategies when the initial spending rate is 4%. Over the next couple weeks, we will apply an XYZ rule and consider how spending may be impacted by the low-interest-rate environment facing retirees.
5 Ways You’re Sabotaging Your Retirement
It seems that no matter how much information is out there, people are still hitting retirement with little or no preparedness at all. Here are 5 of the most common ways people are sabotaging their retirement.
How Can Retirees Adjust Their Spending For Inflation Without Breaking The Bank?
A final example in the decision rules category is the Target Percentage Adjustment method introduced by David Zolt in his 2013 Journal of Financial Planning article, “Achieving a Higher Safe Withdrawal Rate with the Target Percentage Adjustment.”
The Original Retirement Spending Decision Rules
The next decision rule approach provides the name for this category of methods. The Guyton and Klinger spending decision rules derive from work by Jonathan Guyton in 2004 and the team of Jonathan Guyton and William Klinger in 2006.