A first for me this week--An individual actually asked me why I hadn't posted on this site in over two weeks. Of course it was just Bob, a fellow Baritone in my singing group, but I will take his comment as encouragement (which is unusual for Bob as he is usually all over me for singing the wrong notes and/or the wrong dynamics).
Readers of this blog will know that I frequently refer them to Wade Pfau's Retirement Researcher Blog for excellent discussions of retirement income issues. This past week, Wade posted two more such discussions.
In his March 27 post, he has listed and classified known retirement income strategies. Readers with good eyes will see that the Actuarial Approach recommended in this website resides in the bottom box as a Variable Spending strategy residing under the general classification of Probability-Based Approaches.
In his March 24 post, Wade refers to two of his articles discussing risks in retirement and presents a Taxonomy (classification) of Retirement Risks. I would add "not spending enough" to the lower right hand quadrant of his chart as this risk can be almost as problematic as spending too much.
As I have mentioned several times in this blog, it would not be unreasonable for a retiree to manage these risks in retirement by diversifying their sources of retirement income. For many retirees, I believe the best approach involves combining Social Security, life insurance annuity (or long-term care) products or pensions, with a good systematic withdrawal strategy.
