Friday, May 3, 2013

Participants Need a Retirement Income Plan
(Plan Sponsor, May 2, 2013)

I agree with Bryan Hodges that, "Individuals need a process for converting their resources into income in retirement."  He proposes a six step process that is more "holistic" (more comprehensive and more focused on pre-retirement planning) than the actuarial process to determine a spending budget in retirement described in this website.  For further discussion of holistic retirement planning, readers may find this link to be helpful.

Mr. Hodges also refers to "sequence of return" risk.  Dr. Wade Pfau has a nice explanation of this term in a recent post.