Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I AM HOPING FOR ACTUAL POLL CHOICES, NOT HYPOTHETICAL ANSWERS.
[edit: Ideally I mean once Soc Sec-pension-other has kicked in, or average of all years. Presumably initial retirement situation would be least representative.]
A recent thread asked indirectly about the "income floor and upside" concept (defined below). This is a variation on the SIRE vs FIRE question, hopefully a poll is a viable way to explore it. The posts may be more illuminating than the poll though.
Many respected academics/FAs have quantitatively advocated the "floor and upside" approach, several links below (not new, just reference, they've been linked here before). Unfortunately earlier threads on this mostly seemed to degenerate into routine annuity bashing and loose steam. For the record I'm not an annuity fan especially in today's low rate environment - but this thread is meant to explore beyond the annuity pros and cons debate we've all had many times.
"Does sensible retirement planning call for funding basic needs with less volatile assets and investing more aggressively for aspirational goals?"
"Floor and upside" starts by identifying your essential annual retirement expenses and your discretionary, aspirational goals for retirement, including legacy wishes. Think of this as listing your needs/wants/wishes.
The strategy then uses a combination of pension, Social Security, and other relatively risk-free (periodic) lifetime income sources to cover essential expenses and possibly some level of discretionary expenses. This is your retirement “income floor,” the base you must have to sustain your lifestyle. Whatever you have above the floor goes into an “upside portfolio,” for wants, wishes, and legacy.
http://advisorperspectives.com/news...ations_for_Evenskys_Cash-Reserve_Strategy.php
Annuities Versus Safe Withdrawal Rates: Comparing Floor/Upside Approaches | Kitces.com
[edit: Ideally I mean once Soc Sec-pension-other has kicked in, or average of all years. Presumably initial retirement situation would be least representative.]
A recent thread asked indirectly about the "income floor and upside" concept (defined below). This is a variation on the SIRE vs FIRE question, hopefully a poll is a viable way to explore it. The posts may be more illuminating than the poll though.
Many respected academics/FAs have quantitatively advocated the "floor and upside" approach, several links below (not new, just reference, they've been linked here before). Unfortunately earlier threads on this mostly seemed to degenerate into routine annuity bashing and loose steam. For the record I'm not an annuity fan especially in today's low rate environment - but this thread is meant to explore beyond the annuity pros and cons debate we've all had many times.
"Does sensible retirement planning call for funding basic needs with less volatile assets and investing more aggressively for aspirational goals?"
"Floor and upside" starts by identifying your essential annual retirement expenses and your discretionary, aspirational goals for retirement, including legacy wishes. Think of this as listing your needs/wants/wishes.
The strategy then uses a combination of pension, Social Security, and other relatively risk-free (periodic) lifetime income sources to cover essential expenses and possibly some level of discretionary expenses. This is your retirement “income floor,” the base you must have to sustain your lifestyle. Whatever you have above the floor goes into an “upside portfolio,” for wants, wishes, and legacy.
http://advisorperspectives.com/news...ations_for_Evenskys_Cash-Reserve_Strategy.php
Annuities Versus Safe Withdrawal Rates: Comparing Floor/Upside Approaches | Kitces.com
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