Solving the Problem of Retirement

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Vanguard’s Dynamic Spending Strategy for Retirees A number of spending rules—each emphasizing different goals—have been developed to help retirees deal with changes in their individual circumstances and in the markets. Vanguard’s hybrid approach adjusts withdrawals within preset limits, allowing retirees to benefit from good…

 

The Impact Returns Have on How Much You Should Save

One of the fuzzier numbers in retirement planning is how much a person should save. Put another way, how much does an individual need to set aside each year to fund retirement expenses? It’s a function of projected expenditures, sources of other income (e.g., Social Security, inheritance, etc.) and expected investment returns. Though they are…

 

Treasury Introduces New Retirement Saving Plan: “myRA”

Last week the Treasury Department formally launched new retirement-savings accounts geared towards workers who don’t have access to traditional retirement accounts, such as 401(k)s or 403(b)s. The retirement-savings vehicle is called “myRA” and officials said the goal of the program is to teach more workers the importance and the ease of saving for retirement. “When…