Category Decumulation, Withdrawal Strategy

Annuity or Lump-Sum (LIF): Upcoming Nortel pensioners’ decision

In a nutshell In this blog I address the “annuity or lump sum?” and the  “if, when and how much  to annuitize?” questions with a discussion of the pros, cons and other qualitative considerations that go into this very personal decision. “Annuity or Lump-sum?” One could very simply just take the annuity option (“status quo […]

Optimal withdrawal strategy for retirement income portfolios-A review

In a nutshell: The authors compare five retirement withdrawal strategies (under the constraint that the retiree considers bequests to be of zero importance) and define a measure of Withdrawal Efficiency Rate as a means to compare them. They conclude that the commonly mentioned/used “Constant Dollar” (first year 4% of original assets, then adjusted annually for […]

Comparing strategies for retirement wealth management: Mutual funds and annuities by Pang and Warshawsky

Comparing strategies for retirement wealth management: Mutual funds and annuities by Pang and Warshawsky in the Journal of Financial Planning This was a wonderful, must read and long overdue paper in the latest issue of the Journal of Financial Planning which will help advisers (and sophisticated do-it-yourselfers) better understand available decumulation strategies and the fundamental […]

Withdrawal Strategies in Retirement (expanded)

Withdrawal Strategies in Retirement (expanded) Clearly, unless you are in the fortunate position of having been a longtime employee with an employer providing a guaranteed, generous and indexed pension plan (e.g. you’re a retiree from a government job), withdrawal rates from your accumulated assets will be one of the more stressful decisions that you’ll have […]

Withdrawal Strategies in Retirement

Withdrawal Strategies in Retirement Suppose that you just retired and you are trying to figure out how much can you withdraw per year from your accumulated asset base. Traditionally people used to say “never touch the principal, only withdraw the interest” and that retirees should be invested in guaranteed fixed income instruments only! The problems […]

Withdrawal strategies in retirement

Withdrawal Strategies in Retirement Clearly, unless you are in the fortunate position of having been a longtime employee with an employer providing a guaranteed, generous and indexed pension plan (e.g. you’re a retiree from a government job), withdrawal rates from your accumulated assets will be one of the more stressful decisions that you’ll have to […]

Retired

Retired  How much can I withdraw per year Will I run out of money Do I want to and/or will I be leaving an estate Have I got the right asset mix to achieve the desired objectives (withdrawal rate, estate) Withdrawal Strategies in Retirement Clearly, unless you are in the fortunate position of having been […]