Tag Archives | withdrawals

1 C Retirement Distribution Process

How do Safe Withdrawal Rates compare to Dynamic Retirement Income?

This post will briefly discuss how Safe Withdrawal Rate (SWR) research compares to my joint research with collaborators which contributes to the Dynamic retirement income approach and school of thought which adjusts retirement income if need be (the other school of thought being Safety First which SWR fall into). The safe withdrawal rate (SWR) approach doesn’t explain how, […]

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Timing Retirement Myth @AdviceIQ

Some people may have this idea that when you retire impacts how much you may take from your portfolio for income. This is a myth. The idea comes from thinking that someone who retires with a higher portfolio balance is “lucky” to be able to have a higher income from that balance when using the common […]

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Possibility of Adjusting Retirement Spending vs Possibility of Excess

Michael Kitces has an excellent blog on getting a grasp on what the academic terms Probability of Failure (or Success) mean to most people who have difficulty digesting the concept of probability. Past, more academic labels, of probability of “… “success” and “failure” do little to connote the true reality – that “success” actually means an excess left over, and that […]

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What does it mean to say a Pension is Underfunded?

When you read or hear about a Pension Plan being underfunded, what does that mean? It means they don’t have enough assets to cover their liabilities. Assets are the pension plans investments. Liabilities are the payments to retirees. Underfunding is a wide spread problem today according to this study cited in Financial Advisor Magazine. So what […]

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Comparing Immediate Annuities with Managed Portfolios

Dr Wade Pfau made a video as part of the American College’s Wealth Channel series on our recent research working paper titled “Lifetime Expected Income Breakeven Comparison between SPIAs and Managed Portfolios” posted for download on SSRN. Direct to the blog and video link (3:40). Note: if you click photo … it will also take you to the […]

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When should you get an immediate annuity? – Updated

I always marvel at a good writers’ ability to digest a complex topic down to its’ essence! Robert Powell did just this in his article titled When are income annuities right for you? Rather than steal his thunder, I recommend you read his article for yourself. Source:  Robert Powell’s Retirement Portfolio (Wall Street Journal’s Market Watch) Sept. 7, 2013, 6:00 […]

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Series of Simulations Zoom2

Just what should an annual checkup do for you during retirement? (Part 2)

If you are not measuring, you’re likely guessing.  Perception is influenced by what one sees or feels. Retirement feels risky at times. How might that risk be thought of? In other words, how might the feeling-of-risk side of the brain work with the rational side to work through retirement fears? In the retirement planning realm, […]

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cash flows

Just what should an annual checkup do for you during retirement?

Many people think of retirement as passive where they don’t need to do an annual update anymore. So what does an annual checkup do? I suggest that annual reviews are critical during retirement. Yes, there is uncertainty about the markets going forward (I call this the Probability of the Portfolio). Yes, there is uncertainty about how […]

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The Dividend Income Illusion.

So, you want to live off dividend income only. Most people who want this believe they are not touching their principal (capital) when they do this. This essentially is a version of living off the interest and leaving principal alone. But …. that’s not true … that’s not what happens when you invest in dividend paying stocks. […]

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4% retirement rule – gone!

You may, or may not, have heard of the 4% rule for retirement income. It goes like this – you start with 4% or your retirement savings as your first year’s income (divide by 12 to get the monthly amount). Then you add 3% to your initial dollar amount the next year for inflation. Then […]

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