The Myths and Realities of Retirement Planning

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The Mathematics of Retirement Portfolios

The Mathematics of Retirement PortfoliosThis article deals with several important retirement questions: “How much money do I need in my investment portfolio at the start of retirement?” and “How much can I safely withdraw from my investment portfolio during the retirement years?”


A Do-It-Yourself Approach to Target Date Retirement Investing

Ben Branch, Ph.D.

Target date mutual funds have become increasingly popular as one-stop shopping, automatic-pilot retirement vehicles. However, using index funds, it doesn’t take a lot of difficult work to adopt the do-it-yourself approach to target date investing if you want to save on fees and possible expenses. The effort can potentially provide you with a greater retirement nest egg and retirement income.

 

Retirement Spending on Planet Vulcan: Longevity Risk and Withdrawal Rates

Retirement Spending on Planet Vulcan: Longevity Risk and Withdrawal RatesRecommendations from financial planners regarding retirement spending rates deviate considerably from utility maximization models (models that assume consumers optimize how they spend money). This article argues that wealth managers should advocate dynamic spending in proportion to survival probabilities, adjusted up for pension income and down for longevity risk aversion.

 

The Myths and Realities of Retirement Planning

Today, pension and Social Security benefits are not quite what they once were, and health care costs seem to be rising out of control. With all of these scenarios continuing to be played out, wise planning is essential. This article will deal with some of the popular myths about achieving financial freedom and explain why they are myths.


Our Member Question for this week is:

As far as the general condition of the U.S. economy is concerned, how would you rate your outlook for it over the next 12 months?

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Vote to answer this week’s Special Question: What changes, if any, do you make to your investment portfolio or strategy when there is a spike in market volatility?

Last Week’s Results:

Poll results are as of 9 a.m. (Central) on Monday. 2,431 respondents.


AAII Survey: Would You Invest $10,000 in the Stock Market Right Now?

With the spike in market volatility and rising uncertainty about the global economy, we asked our readers whether they thought right now would be a smart time to invest $10,000 in the stock market. Our weekly special question then asked how our readers’ opinions of investing have changed over the last year.

AAII e-book: 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 what you should take advantage of in 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 30-day Trial AAII Membership to start becoming an effective manager of your own assets.

 

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