Saturday, March 16, 2019

There Are No Guarantees if You Self-Insure Your Retirement—Part 2

This post is a follow-up to our posts of August 8, 2018 and February 26, 2019 and discusses another way that you can use our Actuarial Budget Calculator (ABC) tools to help you better manage your investment and longevity risks in retirement.  We humbly claim that you are unlikely to obtain this level of sophisticated help elsewhere (at least at this price), and we provide an example to support this claim and to give you a guide to performing your own calculations. 

Tuesday, February 26, 2019

How Much of Your Retirement Assets Should be Allocated to Your “Floor” and “Upside” Portfolios?

As former pension actuaries, we aren’t going to tell you how you should invest your retirement assets.  Our Actuarial Budget Calculators (ABCs), however, can give you a pretty good idea of the value of assets you should currently have to cover your expected future essential expenses.  This information can be useful in helping you decide how much risk you may want to take in your current investment strategy.  

Sunday, February 24, 2019

You Need to be Flexible and Have a Plan to Win the Retirement Game

We all enter the “Retirement Game” with our pot of assets to invest and spend.   Many of us are just content to finish the game without running out of assets.  Some of us want to maximize our spending and not leave too much on the table at the end of the game.  Others of us want to leave large amounts to heirs.  Some of us don’t want to have significant spending fluctuations from year to year.  Winning the Retirement Game clearly depends on one’s goals, but it is safe to say that most Retirement Gamers would rather finish their game with too much rather than too little assets.

Thursday, February 21, 2019

300th Post—We’ve Added a Smoothing Tab to the Actuarial Budget Calculators (ABC’s) for Retirees

Hard to believe that this is our 300th blogpost.  Almost all of these posts have encouraged our readers to employ the same basic actuarial principles we learned as pension actuaries to help them develop a reasonable spending budget.   During these past nine years, we have continuously refined our messages and improved our tools, but the basic actuarial principles we advocate haven’t changed.  More importantly, we continue to passionately believe that the use of these principles can enable individuals like you to make better financial decisions.

Tuesday, February 12, 2019

Pension Actuaries to Discuss Solutions to the Lifetime Income Challenge

We’re excited to see that a panel of pension actuaries will be discussing decumulation of retirement savings at the upcoming 2019 Enrolled Actuaries Meeting.  According to the session description:

“Pension actuaries are well positioned to play an important role in developing solutions to the lifetime income challenge.  In this session we explore emerging solutions and strategies to optimize the effectiveness of retirement savings.”

Thursday, February 7, 2019

If You Aren’t Separately Budgeting for Non-Recurring Expenses, You Probably Don’t Have a Robust Retirement Spending Budget

We here at “How Much Can I Afford to Spend” are all about the annual spending budget.  But we don’t tell you:
  • how to invest your assets;  
  • how much of your assets you should actually spend each year, or 
  • how you should spend your assets.