Morningstar’s David Blanchett formulates some “simple” retirement withdrawal algorithms. He finds “(not surprisingly) that the more dynamic and adaptive a withdrawal strategy is, the better off it makes the retiree.” Read the full article >>
Steve Vernon demonstrates three ways to turn your retirement savings into retirement income. The first – Dividends and Interest – is probably applicable only to the wealthiest of investors (and, even then, there are significant drawbacks to the approach). The second – Systematic Withdrawals – is probably the most widely used, but does carry greater Read more about Three Ways to Turn Savings into Income[…]
Evan Simonoff reports “If the New Normal prevails—meaning a 4.5% real annualized rate of return on equities and a 1.5% real returns on bonds—then standard retirement rules like Bill Bengen’s 4.5% withdrawal rate for retirees and a 15% savings rate for workers won’t cut the mustard.” Read the full article >>
Eilene Zimmerman of the New York Times questions whether or not the “4% Rule” can work in an environment of low bond returns and high stock valuations (such as we have in early 2014). Read the full article >>
When Bernstein talks, investors should listen: “It’s almost like a political issue. There’s a “right wing” of very smart, authoritative people who think that savers and retirees should be investing conservatively because stocks are so risky. And then there’s a “left wing” of equally smart and authoritative people who believe the opposite.” Read the full Read more about Bill Bernstein: Stop When You’ve Won the Game![…]
Jim Dahle, MD, posts a wake-up call for retiring physicians: “When it comes to planning for retirement, there are three concepts that physician investors often misunderstand. Unfortunately, two of these three constitute “bad news” that I hate to deliver to the ‘patient.’” Read the full article . . .