Monday, April 15, 2013

Planning your retirement: The best ways to generate lifetime income
Steve Vernon (CBS Moneywatch, April 15, 2013)
Thanks again to Steve Vernon for mentioning my simple online tool (which has been subsequently updated to Version 2.0) in his April 15 blog post as one of the recommended systematic withdrawal approaches (Retirement Income Generator #2).
While Steve mentions three different types of Retirement Income Generators (RIGs), it is important to remember that retirees don't have to utilize just one of the three RIGs.  As each type of RIG has advantages and disadvantages, you may wish to apply one of the RIGs to a portion of your accumulated savings and another RIG to the remainder of your accumulated savings.  For example, you could buy an immediate annuity (or deferred annuity) with a portion of your accumulated savings and use a systematic withdrawal approach with the remainder of your savings.  And my simple online calculator will enable you to see what the effect of such "RIG mixing strategies" will have on your expected income in retirement.

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