Category Accumulation

On-track to retirement? Objectives, plans and feedback to align: savings rate, retirement age, and expenses

In a nutshell An annually exercisable feedback mechanism in tax-deferred retirement accounts (e.g. 401(k), IRA or RRSP) is provided to assess whether a pre-retiree is on track to achieve financial objectives for retirement and identify corrective steps required to align plan execution and expectations. Shortfalls to objectives can be eliminated by adjusting: annual savings-rate, retirement age and if necessary the planned retirement […]

“The Intelligent Portfolio” by Christopher L. Jones

This book offers easy to understand investment advice, explains what’s important and what is not, and how/why things work the way they do based on modern portfolio theory. Well worth your reading time. While the book does a great job on the retirement asset accumulation part of one’s lifecycle unfortunately, it dismisses quite lightly the […]

Pfau: “Safe savings rates: A new approach to retirement planning over the lifecycle”

Pfau: “Safe savings rates: A new approach to retirement planning over the lifecycle” In a nutshell Pfau extends William Bengen’s analysis of SAFEMAX (safe maximum withdrawal rates over a 30 year retirement) to the accumulation phase and defines a SAFEMIN (safe minimum savings rate through one’s 30 working years necessary to deliver 50% of one’s […]

Am I on track for retirement?

Am I on track for retirement? In a nutshell An essential missing element from DC plans is a feedback loop which at least annually gives you an indication of whether you are on track to your planned retirement date and income level. Wade Pfau, whose work on safe savings ratesI reviewed a few weeks ago, […]

Contribute to RRSP or TFSA? 401(k) or Roth 401(k)? Tax-free or Tax-deferred?

(Originally posted October 27, 2008) The short answer is that there is no short answer. This is question that American investors had to struggle with for a while, and fortunately Canadians will have to grapple with starting next January when TSFAs become available here. Basically there are two broad categories of investment vehicles: tax-free (or […]