Tag Archives | retirement income


What is a Retirement Feasibility Timeline?

I define the Retirement Feasibility Timeline as a method to depict the transition between the working years (accumulation) and the retirement years (decumulation). You can visually see year by year (age by age) when retirement may be feasible without any changes to what you’re presently doing, and what meaningful changes may alter that outcome to […]

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What returns give, volatility takes away.

Many people focus on just returns, thinking that the higher the return the better their results. The consequences of such a focus while saving money are not felt as much (buying low) as they are once retired (selling low) and trying to manage the pot of money to give income for the rest of one’s life. Let’s take […]

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reverse mortgage

Is a Reverse Mortgage right for you?

Short answer, it depends! I’ve written about reverse mortgages here before – mostly about how they can blow up the best laid plans by people not fully understanding what they’re doing – thus, unexpected consequences from misunderstanding. So this piece is about getting to understand them so you may be able to use the untapped […]

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What does making extra mortgage payments REALLY do?

Conventional wisdom says that making extra payments towards your mortgage saves interest. Yes … but … is that all that happens? Do you always save more interest than you pay in extra payments? What else happens – maybe even more important to consider? Here’s an easy calculator online that you may use to see how making extra payments […]

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withdrawal rates and POF

How to Use “Dynamic Updating” to Determine a Prudent Retirement Income Based on Age

This article is a brief summary of how all of our * research papers tie together to modernize the retirement income measurement from your investments. In other words, how to determine a prudent amount of retirement income. Advisers generally annually update plans with their clients. An important part of this update process is capturing new […]

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simple steps

What is inflation? Is it really important?

Inflation is a persistent increase in general prices in an economy which results in a loss of purchasing power. The effect of price increases is insidious because we remember what the price was a short time ago, but not prices longer ago. Let’s take a look at both how prices have gone up and the […]

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open egg

Contributions or Returns? Which is Better?

“Any investment portfolio has two engines of growth: the contributions made by the investor, and the rate of return generated by the portfolio. But which has the greater impact?” says Dr Craig Israelsen in Financial Planning article titled “Best Way to Bulk Up.” His findings echo those of mine that I posted in a blog […]

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Retirement Income Schools of Thought (part 2)

I recently blogged about Two Retirement Income Schools of Thought, the Safety First School and the Probability Based School. The Probability School has two schools of thought developed within it as well. The first, or the original school which I will call the Static School, began with Bengen’s seminal work in the mid 90’s and many others have […]

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Two schools of retirement income thought

You may not be aware of it, or in which you fall, but there are generally two retirement income schools of thought. One school of thought is the “safety first” school and the other is the “probability based” school of thought. Neither is right or wrong, it essentially comes down to each retiree’s decision. Safety First […]

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take a guess

Retirement Plan Participants Guess at Savings Goals

This article, by Danielle Andrus at AdvisorOne, talks about the large percentage of retirees who guess at how much they need to retire. These numbers about how many people are guessing are scary! There is no need to guess. There are easy and rational ways to answer the questions when can you retire and how much you need beyond Social Security […]

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