A Simple Formula for Calculating “Safe” Retirement Spending

For nearly two decades, the 4% rule has served as a benchmark of how much retirees can safely afford to withdraw from their nest eggs initially, with annual increases for inflation, and be reasonably certain they would not outlive their savings over a 30-year retirement. In the aftermath of the financial crisis of 2007 to…

 

Retirement Can Be Long Enough for Something to Go Haywire

An interesting point was brought up at this week’s CFA Institute’s Financial Analysts Seminar: retirement is a long enough period of time for something to go haywire. The point was brought up by Barton Waring, a retired chief investor officer for Barclays (which is now BlackRock). He raised the topic during a discussion about retirement…

 

The Debate Over Retirement Income Strategies

As millions of baby boomers are either retiring or nearing retirement, there is an ongoing debate on how to manage one’s portfolio heading into and once in retirement. Here’s a glimpse into it: While at last week’s Morningstar Investment Conference, I tweeted a comment made by Morningstar’s David Blanchett about the likelihood of success for…

 

9 Guidelines for Retirement Success

This article originally appeared in the May 2014 issue of the AAII Journal. Now that your once-distant dream of retirement is at hand, it can be an unsettling switch from being a saver to being a spender. It means having an entirely new approach to your money. It can be tough regardless of your financial expertise…

 

Nobel Laureate Advocates Allocating by Market Weight

This article originally appeared in the September 2014 issue of the AAII Journal. William “Bill” Sharpe is the STANCO 25 Professor of Finance, Emeritus, at Stanford University, recipient of the 1990 Nobel Prize in Economic Sciences and a co-founder of Financial Engines Inc. He also authors the Retirement Income Scenarios blog (RetirementIncomeScenarios.blogspot.com). He spoke to AAII…

 

Readjust Your Focus When Planning for Retirement

This article originally appeared in the September 2014 issue of the AAII Journal. Michael Falk is a partner with Focus Consulting Group and the chief strategist on a global hedge fund. His background includes extensive asset allocation research and portfolio development expertise along with a multi-faceted understanding of behavioral finance and retirement issues. He spoke to…

 

Is the 4% Rule Broken?

One of the biggest fears retirees, or those nearing retirement, face is that they will outlive their retirement assets. A recent article from Financial Advisor cites research that does little to alleviate those fears. New research shows that Americans retiring in 2015 need to be far more conservative in their withdrawal rates during retirement. The…