First and foremost, thank you for subscribing to this blog. I’ve had quite a few new subscribers this year and really appreciate the kind comments I received from readers. If you have a topic you’d like me to explore next year, just a question that you and perhaps others would like me to respond to, … Read more
Regular readers know that I sometimes reflect on an interaction I’ve had with an individual or couple in the context of financial counseling/coaching and the broader implications of the subject or issue(s) being discussed to retirement stewardship in general. I recently talked with an older widow in our church about her financial situation. Although she … Read more
A family friend recently asked me to look at her retirement investment portfolio. It’s advisor-managed and has an allocation one-third S&P 500-indexed annuity, one-third stock and bond ETFs, and one-third cash (government money market). Our friend is a recent retiree with a long planning horizon, so at first glance, I wondered why her portfolio had … Read more
The older I get, the more critical simplification becomes to my wife and me, especially with our finances. You don’t need me to tell you that we live in a highly complex world. Every decision we make, especially those related to our finances and retirement planning, seems pretty complex (or we tend to overcomplicate them). … Read more
In the previous article, I alluded to my “safe withdrawal rate” (SWR) portfolio strategy, which I described as “strategic growth and income.” I also discussed the impact of inflation on it and two different types of annuities—a nominal (non-inflation-adjusted) annuity and a nominal annuity with a 3% annual cost-of-living increase (COLA) but not indexed to … Read more
Many financial planners, advisors, and especially retirees are wary of annuities. They cite cost, complexity, loss of liquidity, under-performance, and other factors as their primary concerns. In many cases, their concerns are warranted. Yet many retirement planning professionals, academics, actuaries, and economists—i.e., a bunch of really smart people—regularly encourage consumers to consider a particular type … Read more
It’s that time of year again: income tax time. And I can’t be sure, but I think many retirees are generally more concerned about taxes in retirement than when working. I’m no different than anyone else; I don’t enjoy withdrawing from my retirement savings, handing some of it to the government, or having them take … Read more
In some previous articles, I’ve discussed longevity risk, withdrawal rates, and Dave Ramsey’s 8% withdrawal rate recommendation. These topics can quickly get mind-numbingly complex. The financial side of retirement has a lot to do with the math; it’s a big math problem we need to solve as best we can. We do this thoughtfully, humbly, … Read more
A sustainable withdrawal rate is integral to a wise retiree’s financial stewardship plan. Your withdrawal rate determines how much money you’ll take from your retirement savings to add to other sources of income to meet your spending needs. I became aware of a video of one of Dave’s recent shows in which he discussed retiree … Read more
