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How Much Will You Leave On the Table?
Old 04-09-2012, 05:48 PM   #1
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How Much Will You Leave On the Table?

Scott Burns...

Life: How Much Will You Leave On the Table? - Registered Investment Advisor

The researchers also considered another factor— assured income. If retirees have a “floor” income for their lifetimes from a combination of Social Security, pension and life annuities, they can think about running out of wealth before death with less worry than if their only lifetime income is from Social Security
“By emphasizing a portfolio’s ability to withstand a 30 or 40 year retirement,” the researchers write in the March issue of the Journal of Financial Planning, “we ignore the fact that at age 65 the probability of either spouse being alive at age 95 is only 18 percent.” As I pointed out in a recent column, it’s silly to have 95 percent confidence in your income when your chance of being alive is much smaller.
Excessive caution, he told me in a recent interview, means we buy long-term security at the expense of giving up many things we’d like to do today. We leave estates that are larger than planned and feel remorse for experiences we’ve missed.
So the researchers reframed the dilemma. Putting investment results in the framework of our life expectancies, they asked this question: If you withdrew at a greater rate, what percentage of your remaining years of life at age 65 would you be broke

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Old 04-09-2012, 05:58 PM   #2
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I think this article is already being discussed, here:

"4% is too low." How much will you leave on the table?

"You can never cross the ocean until you have the courage to lose sight of the shore." - - - C. Columbus
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Old 04-09-2012, 06:12 PM   #3
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Oh So Solly...

nevermind, Pay no attention to the man behind the curtain:

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Old 04-09-2012, 06:32 PM   #4
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My guess is that the article will show up all over the place in the next few weeks. Anything that seems to suggest spending more is going to get a bunch of echos.
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