Join Early Retirement Today
Thread Tools Search this Thread Display Modes
How Much Will You Leave On the Table?
Old 04-09-2012, 06:48 PM   #1
Thinks s/he gets paid by the post
MasterBlaster's Avatar
Join Date: Jun 2005
Posts: 4,362
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

MasterBlaster is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-09-2012, 06:58 PM   #2
Moderator Emeritus
W2R's Avatar
Join Date: Jan 2007
Location: New Orleans
Posts: 42,664
I think this article is already being discussed, here:

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

I have drunken deep of joy,
And I will taste no other wine tonight.

― Percy Bysshe Shelley
W2R is online now   Reply With Quote
Old 04-09-2012, 07:12 PM   #3
Thinks s/he gets paid by the post
MasterBlaster's Avatar
Join Date: Jun 2005
Posts: 4,362
Oh So Solly...

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

MasterBlaster is offline   Reply With Quote
Old 04-09-2012, 07:32 PM   #4
Full time employment: Posting here.
Join Date: Mar 2012
Location: seattle
Posts: 643
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.
bld999 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

» Quick Links

All times are GMT -6. The time now is 04:27 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.