Retirement spending: Why rules of thumb don’t work

Retirement-Spending-Chart-blueprint

We’ve all heard the rule-of-thumb: To retire comfortably, you need to replace 70 percent to 80 percent of pre-retirement income. Add a couple of percentage points for inflation every year, and you’ll have what you need to meet your expenses in retirement. But the rule-of-thumb never was meant as a way to think about spending […]

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Is $1 million enough to retire?

The New York Times carried a story earlier this month with the provocative headline For Retirees, a Million-Dollar Illusion. The story points out the difficult math facing retirees due to ultra-low interest rates, which make it tough to keep up with inflation with fixed-income investments. But the story leads us to an unfortunate — I […]

New thinking surfaces on safe withdrawal rates in retirement

What’s a safe withdrawal rate in retirement? For years, the rule-of-thumb answer has been 4 percent, adjusted annually for inflation. But a growing number of financial planning experts are re-thinking that number. “Advisors are getting the question a lot these days from clients,” says Maria Bruno, a senior investment analyst in Vanguard’s Investment Counseling and […]