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
I recently discussed asset allocation and diversification with some friends, a couple in their 50s. In the context of that conversation, they asked me what I thought about Dave Ramsey’s investing recommendations. (They were concerned that they may invest too conservatively for their age and goals.) I told them that I respect Dave and agree … Read more
In a previous article, I touched on the risk that rising interest rates present to retirees. There are risks—the negative impacts of rising rates—but there are also benefits, especially for savers and retirees. But to the extent that higher rates are usually associated with inflation, the scale tips toward the negatives and less toward the … Read more
In the last article, we looked at what I believe to be the greatest risk in retirement: retiring without a clear sense of calling and purpose. But I also mentioned some other risks—the financial ones. The Bible encourages us to take wise precautions as part of good stewardship to protect ourselves from the adverse effects … Read more
In a recent article, I discussed spending in retirement and whether our costs go down as we age. In this article and the next, we’ll look at the other side of the equation: generating income, specifically the different ways to withdraw from savings to fund your spending, hopefully for as long as you live. This … Read more
Many books and articles have been written about Christians and money, and some about retirement. This blog is about Christians and retirement, and I often write about money and stewardship. There’s much to say about these topics, but the Bible tells us what is most essential for us to know—not every practical detail about personal … Read more
