How Long Can Retirees Expect To Live Once They Hit 65?
Life expectancy is tricky. Average life expectancy at birth is 71 years, but it’s constantly changing depending on your age and myriad other factors.
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.
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.
Retirement Spending Increases And Decreases Over Time
An important simplifying assumption in William Bengen’s research is that retirees spend constant inflation-adjusted amounts throughout retirement. This may be at odds with the spending patterns of many retirees.
What If Retirees Don’t Want To Run Out Of Money In 30 Years?
Traditional safe withdrawal rate literature regularly makes the assumption that retirees will choose a withdrawal rate that will leave precisely no wealth after the final withdrawal in the thirtieth year of retirement. This can leave them playing a game of chicken as their wealth plummets toward zero.
The Value of Financial Advice
I am often asked whether it is worth the cost to hire a financial advisor. After all, they charge you money to make you money. People say they can listen to the news and know where and how to invest, so, “Wouldn’t I be better off just keeping that fee for myself?” That is an excellent question with an answer that depends on many factors.
Ten Reasons Why the 4% Rule is Too Simplistic for Retirement Planning
What is the highest withdrawal amount as a percentage of retirement date assets that with inflation adjustments will be sustainable for the full 30 years? Here are 10 reasons that 4% may not be the appropriate withdrawal rate for every new retiree.
The Shocking International Experience of the 4% Rule
The Shocking International Experience of the 4% Rule. An argument made in support of the 4% rule is that despite what I argued before, post-1926 U.S…
Are market valuations the most important factor for retirement income strategies?
The question remains as to whether historical withdrawal rates provide sufficient insight about what can reasonably be expected to work for more recent retirees.
Safe Withdrawal Rates and Life Expectancy, Part 2
Safe Withdrawal Rates and Life Expectancy, Part 2
