The 10 Myths of Retirement Planning


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:

Retirement planning requires a clear-eyed analysis of future needs and income, but many individuals view retirement through rose-colored glasses. Here are some of the most common myths and how you can bring reality into focus.

Diversifying a portfolio among four primary asset classes allows for large withdrawals to be taken throughout retirement. This article analyzes various portfolios and how long they survived over 55 rolling 35-year periods from 1926 through 2014. Additionally, the retirement portfolios were tested under several different withdrawal rates.


Retirement planning sites can assist you in determining how much you need to save for retirement and how much you can safely spend during retirement. AAII’s Computerized Investing has compiled a list of the sites with the best retirement tools, education and commentary.


Bucketing is a total-return approach in which you segment your portfolio based on when you expect to need your money. Money for near-term income needs is parked in cash and short-term bonds while money needed for longer-range income needs remains in bonds and stocks. By segmenting their portfolios based on when they will need the money, retirees can fulfill both short-term cash and long-term growth requirements.

Our Member Question for this week is:


What is your primary current or expected source of retirement income?


Vote to answer this week’s Special Question: If you are retired but still work, or are planning on working after you retire, what are your primary reasons for doing so?

Last Week’s Results:


Last week we asked our readers whether they believed there was a bubble forming in the global fixed income market. The results are discussed at the AAII Blog.


Profitable Retirement Planning

This e-book, which is available exclusively to AAII members, was written to help our members achieve a financially secure retirement. The book offers an overview of many of the primary considerations for retirement planning, including how much you need to save, where your retirement income will come from, what asset classes you should invest in, and how you should take advantage of your company’s defined contribution plan (if available).


The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.