The Actuarial Approach described in this website automatically adjusts spending not only for market declines (or spending more than the budget) but also for favorable experience (or spending less than the budget). So like the slogan in the old Prego commercial goes--"Its in There!"
Wednesday, February 26, 2014
In his February 26 post, Michael Kitces encourages the use of a written Withdrawal Policy Statement to ensure that retirees have a plan for dealing with market declines.
Friday, February 14, 2014
As indicated in previous posts, I believe it is not unreasonable to manage risks in retirement by diversifying sources of retirement income. This article discusses research that explains why individuals are "more likely to select an annuity option when a 'partial' option is offered instead of an 'all or nothing' option." I especially liked the comment from one of the researchers who said, “If you anticipate lumpy expenditure needs in retirement (e.g., out-of-pocket medical expenses), you want some liquid wealth to cover those expenses."