Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-27-2010, 05:52 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by Nords View Post
The paper's actually been out for a couple years-- I remember that Bob Dylan concert analogy.

Like Brewer, I suspect Sharpe is talking his book. The whole FinancialEngines premise is based on a retirement annuity. The company went public last month and now has to think short-term about its investors.
.
Thanks Nords, I remembered the paper when I got to the concert analogy, but I forget we already discussed us.
__________________

__________________
clifp 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 Early-Retirement.org 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 04-28-2010, 01:10 PM   #42
Full time employment: Posting here.
kaudrey's Avatar
 
Join Date: Feb 2006
Location: Alexandria, Va
Posts: 943
Quote:
Originally Posted by donheff View Post
I'm looking forward to the Capitals against the Blackhawks - that way I can't lose.
I hope you are not jinxing the Caps! Here is one Caps fan who is VERY nervous about tonight's game.
__________________

__________________
Two roads diverged in a wood, and I - I took the one less travelled by...
kaudrey is offline   Reply With Quote
Old 04-30-2010, 06:27 AM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
I think that paper points out some shortcomings in the 4% approach if your goal is to more safely maximize your spending throughout retirement (at a similar risk level... somewhat similar, or perhaps reduced a bit).

Of course, to make it work in an optimum way, a number of factors have to come together successfully. It is easy to make mistakes and just like any other planning/execution... and no one can predict the future.


IMO - SS should be the first consideration for this type of annuity application. Maximizing it (assuming one or a spouse anticipates a long life).


I am convinced that creating a base income (from dependable, nonvolatile income streams) is important. Especially as one ages. If interest rates become attractive when we are in our 60's and DW and/or I are healthy, I might consider an annuity to round out a base income (mainly as a hedge for longevity)... essentially investing in the pool. What I mean by base income is an income stream that will cover non-discretionary spending that would cover the bills and keep DW and I or the survivor out of poverty.

But... I must admit, I waffle back and forth on the idea. It is a complex decision with many variables.
__________________
chinaco is offline   Reply With Quote
Old 04-30-2010, 09:59 AM   #44
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,820
Quote:
Originally Posted by chinaco View Post
I think that paper points out some shortcomings in the 4% approach if your goal is to more safely maximize your spending throughout retirement (at a similar risk level... somewhat similar, or perhaps reduced a bit).

Of course, to make it work in an optimum way, a number of factors have to come together successfully. It is easy to make mistakes and just like any other planning/execution... and no one can predict the future.


IMO - SS should be the first consideration for this type of annuity application. Maximizing it (assuming one or a spouse anticipates a long life).


I am convinced that creating a base income (from dependable, nonvolatile income streams) is important. Especially as one ages. If interest rates become attractive when we are in our 60's and DW and/or I are healthy, I might consider an annuity to round out a base income (mainly as a hedge for longevity)... essentially investing in the pool. What I mean by base income is an income stream that will cover non-discretionary spending that would cover the bills and keep DW and I or the survivor out of poverty.

But... I must admit, I waffle back and forth on the idea. It is a complex decision with many variables.
I really like the "base income first" strategy. In our case we can cover it by deferring SS. We have dedicated (very conservative) assets to fill the gap from retirement to SS start date.
__________________

__________________
Independent is offline   Reply With Quote
Reply


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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bill Sharpe Plan Jacey FIRE and Money 20 03-13-2009 10:33 AM
Sharpe says... mickeyd FIRE and Money 0 05-24-2008 12:09 PM
William Sharpe interview - "lockbox strategy for retirement spending" DblDoc FIRE and Money 18 05-23-2008 10:34 AM
Bill Sharpe gives CAPM a makeover Nords FIRE and Money 9 10-09-2006 04:51 PM
Phillip William Ellis charlie Other topics 4 03-23-2005 01:32 PM

 

 
All times are GMT -6. The time now is 03:11 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.