A good description and critique of annuities and the lack of a market for them in NZ.
The goal of any retirement income or withdrawal strategy is to live a good standard of living without running out of money but also without leaving behind too much and thus living a more meagre life than necessary.
The 4% withdrawal or drawdown rule is probably the most common retirement income withdrawal strategy in use today and is an easy one to understand. Because of this, I am starting my series on retirement income withdrawal strategies here. This rule of thumb was created by William Bengen, a California-based financial planner in 1994. It is based on a study1 of historical returns, and looks at what rate one can safely withdraw without running out of money before dying. Continue reading The 4% Withdrawal Rule
In his first column as a contributor at Forbes Wade Phau explains Lifecycle Finance.
People seek to smooth spending over their lifetimes in order to obtain the greatest satisfaction from their limited resources, and the problem to be solved is how high this standard of living can be.
I plan on covering implementing this approach in the future.
This article from MarketWatch.com deals with an important topic that I want to go into in some detail later on. I think each of the three methods listed deserve their own post in the future. I haven’t decided which method I favor for the DIY Investor, so stay tuned for more analysis and research on current thinking about asset allocation in retirement.