We love simple rules. It’s how our brains are wired. We use heuristics or mental short cuts to solve complex problems. Chances are you have heard of the ‘4% Rule’ for retirement spending. The rule states that ‘Assuming a minimum requirement of 30 years of portfolio longevity, a first-ear withdrawal of 4%, followed by inflation-adjusted […] Read the full article…
Fidelity Investments wrote an interesting retirement piece that creates an age-based rule of thumb for how many multiples of earnings are needed for retirement. The rule of thumb model is based on a core set of assumptions we’ll cover later, so it’s important to know that the number here should be considered a starting point […] Read the full article…
In this post I’ll summarize the key variables that go into Social Security and identify ways to maximize benefits for both individuals and couples. It is important to point out that the best decision can vary based on life expectancy and existing medical and financial conditions. For these, it is a good idea to get […] Read the full article…
Consider two phases of wealth management: the accumulation phase and the distribution phase. In the accumulation phase the top concern is to grow retirement assets to meet future income needs. In this phase, income from employment provides for both current spending and retirement investing. Investment decisions focus on building a high confidence plan that ensures […] Read the full article…
The Trustees of the Social Security and Medicare trust funds released their annual report today. The report covers the next 75 years with projections running through 2090. A summary of key findings: • Social Security’s costs exceed income (excluding interest) throughout the entire period, as it has since 2010. • Interest income and redemption of […] Read the full article…
Are you concerned that you will outlive your assets in retirement? In a Wells Fargo / Gallup Poll conducted last August, 46% indicated they were ‘very’ or ‘somewhat’ worried about outliving there assets. I think there are several good reasons behind this fear. First, there is always some risk (uncertainty) about what future market returns […] Open full pdf article…
In his recently released 3rd edition of “Irrational Exuberance,” Nobel Prize winning economist Robert Shiller asserts that, “This is not the golden age for investing and we shouldn’t assume that it’s going to be as it always was.” The historical assumption of 10% market returns may not hold true for the future. The core argument […] Read the full article…