Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I've liked Jonathan Clements advice ever since I first read his column in the WSJ years ago. I think his latest column on the Humble Dollar website is one of his best retirement overview columns. It's something I want to keep aside so I can use it to educate friends and family who ask me for advice. This happens just often enough to keep my fragile ego in good shape.
Here it is. It's not a one size fits all but a good starting point for how to think about funding retirement. My 2¢. YMMV.
https://humbledollar.com/2023/11/retirement-roulette/
A few quotes:
Here it is. It's not a one size fits all but a good starting point for how to think about funding retirement. My 2¢. YMMV.
https://humbledollar.com/2023/11/retirement-roulette/
A few quotes:
IT’S HARD TO OVERSTATE how challenging it is to generate retirement income: We need our money to last at least as long as we do, and yet we don’t know how financial markets will perform, what the inflation rate will be, whether we’ll get hit with hefty long-term-care costs and how long we’ll live.
More important, we should be skeptical of the notion that steadily growing lifetime income can be generated from volatile investments. And even if it’s doable, most retirees won’t do it. Instead, faced with a market crash and accelerating inflation, their instinct will be to spend less—and that’s a good instinct, I’d argue. My advice: Treat the 4% rule as a guideline and not a withdrawal strategy to be followed robotically.
Overseeing a portfolio of stocks and bonds, and calculating how much we can safely withdraw each year, might seem easy enough in our 60s. But will we be up to the task in our 80s?