Spending Goals

What Type Of Retirement Spender Will You Be?

In August 2015, J.P. Morgan Asset Management released a study about retirement spending by Katherine Roy and Sharon Carson. In analyzing the expenditures for their diverse consumer base, they identified four retirement spending profiles and an additional category of miscellaneous individuals.

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What Is Age Banding And What Does It Mean For Retirees?

Another important contribution in the area of retirement spending patterns is Somnath Basu’s 2005 article “Age Banding: A Model for Planning Retirement Needs.” Though it provided a comprehensive retirement planning framework, I want to focus specifically on the findings that covered post-retirement spending patterns.

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What Is The ‘Retirement Spending Smile’?

Many people approach retirement planning as if they’ll monotonically spend the same amount year after year throughout their retirement. This assumption certainly makes the planning process significantly simpler, but it’s not realistic. Our spending desires (and needs) change through time. Many people want to take advantage of their early retirement while they are still spry…

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Sustainable Retirement Spending And Market Returns

I want to spend a bit more time considering sustainable spending rates if we had foreknowledge of future investment returns. This analysis will help illustrate the impacts of two important matters: What happens to sustainable spending rates as the planning horizon extends further, and What happens to sustainable spending rates if we build in a…

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The Value of Sound Financial Decisions

Good financial planning decisions extend well beyond where and how you invest. Two major research efforts have attempted to quantify how good financial decision making can enhance your lifetime standard of living. It is important to understand what this research means, because this may not always equal a higher portfolio return in the short term.

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