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Article on Managing Retirement Income
Old 04-03-2011, 01:45 PM   #1
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Article on Managing Retirement Income

I'm negative about 95% of financial journalism, but browsing around on a link
given in another thread I found this article and, amazingly, it gives some sensible advice and an instructive overview of ways to organize and generate income in retirement.

Managing Retirement Income for the Mid-Market
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Old 04-03-2011, 01:51 PM   #2
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Old 04-03-2011, 02:26 PM   #3
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Another good one from the JFP. The authors' step-by-step approach is summarized in this chart:

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Old 04-03-2011, 06:28 PM   #4
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Assume the Silvers are open to using an annuity to fill their essential income gap of $10,260. The Silvers convert $150,000 of their bond holdings to a variable income annuity to increase their exposure to equities and provide a floor of lifetime income.
Does this seem like a good idea?
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Old 04-03-2011, 09:20 PM   #5
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Great reference articles in the end note. Could be a reading list for ER wannabes.
Thanks for posting. I read the title and skipped the article - bad decision.

I have been through most of these steps in preparation for my ER, but I could never have structured them as well or articulated them as clearly.
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Old 04-03-2011, 10:16 PM   #6
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Originally Posted by Helen View Post
Does this seem like a good idea?
I don't really like variable income annuities, if I wanted to fill an essential income gap I'd probably buy a fixed annuity as the guarantee is what I'd want. Then I'd use low cost mutual and bond funds to generate discretionary income. Of course you'd have to buy an annuity that gave you more than your immediate need for income to account for inflation.

Having a few bad stock market years might leave you short of income with the variable annuity depending on where the min annual income was set.
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Old 04-04-2011, 10:15 AM   #7
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I don't know what a "variable income annuity" is. Maybe a VA in the payout stage?

If so, I don't see why I would want to use it to cover a basic income need that clearly doesn't vary with the market.
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Old 04-04-2011, 10:27 AM   #8
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Originally Posted by Independent View Post
I don't know what a "variable income annuity" is. Maybe a VA in the payout stage?

If so, I don't see why I would want to use it to cover a basic income need that clearly doesn't vary with the market.
Its an annuity that changes it's payout according to the performance of the stock market, but has some minimum income level. I also don't think it's appropriate to cover essential income needs.
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