Such approaches are very problematic. For one thing, many middle-income retirees are already balancing very low savings against their retirement needs, so they need something more concrete.
Adjusting expenditures to market ups and downs has limited real-life possibilities. If a couple spends too freely in the early years and markets plummet, they may be destitute or, at a minimum, desperate—whereas a more cautious plan would leave them more secure.
Dynamic Withdrawal Rule—Simplified
October 1, 2015
« Previous Article
| Next Article »
Login in order to post a comment
Comments
-
God loves us all and loves dynamic withdrawal rule too...
-
I am glad to see that so many thoughtful advisors have dismissed annuities as the solution for almost anyone facing or in retirement. it's marketing pure and simple. the concept is great but you give the money now plus fees and maybe you get the annuity (which is not inflation adjusted) and maybe the insurance company goes out of business at some point (usually the one that gave you the best rate). Advisors (most of them) are smarter than most people give them credit for.
-
pughman, it's not a tool, it's a sales product clear and simple. yep, annuities have been around since henry the 8th. Henry didn't have life expectancies and medical breakthroughs which we have today. Watch what happens if the boomers owning annuities live much longer than actuarially assumptions currently estimates. then the dirt is going to hit the fan. It'll be no different than what occurred with LTC insurance and social security. yep, socialize the losses, fat commissions to the capitalists!!!
-
annuities have been around for hundreds of years - henry the 8th - issued them - its about the risk of running out of income
-
low interest rates - market turbulence - flat returns n market over last 15 years how can annuitiesrajoke dismiss any tool that might help - especially getting mortality bonus - i.e the older you are the more you get - i don,t see munis yields proving income - without increase risk -annuities are neither good or bad - just a tool - and just because the balence is investedfor" long term appreciation" doesn't mean it will -sequence of return
-
As soon as I saw "annuities" in the article, I knew it was time to stop reading. This past week, I met with another "satisfied annuity" purchaser who would have been much better off buying a muni-ladder for a majority of what he committed to the product and with the remaining piece invested in the market for long-term appreciation. To say he was angry, is an understatement. Annuities will be the WMD for the boomer generation......