Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I have no pension or retiree health care (aside from Soc Sec/Medicare) and my strategy during the accumulation phase was always build the biggest nest egg I can and keep it ALL invested, making periodic withdrawals, until DW and I go poof.
Now that I am getting much closer to retiring, I am giving alternatives more consideration. I just finished Milevsky's book Are You a Stock or a Bond?: Create Your Own Pension Plan for a Secure Financial Future. It was an interesting read.
He advocates developing a product allocation in retirement that consists of:
I am going to have to go back and read the last half of the book more carefully. And it appears there's a (soft) sell to have a professional do the analysis.
I have heard these products discussed conceptually here many times before, but never an attempt to quantify a plan for product allocation. Has anyone done this? Have there been discussions that I've missed? Maybe the second time through I'll decide it's snake oil, but my engineer mind was intrigued the first time through...
Now that I am getting much closer to retiring, I am giving alternatives more consideration. I just finished Milevsky's book Are You a Stock or a Bond?: Create Your Own Pension Plan for a Secure Financial Future. It was an interesting read.
He advocates developing a product allocation in retirement that consists of:
- SWiPs - liquid investments you can invest and withdraw from as you please to cover inflation risk and leaving the maximum estate,
- LPIAs/SPIAs - lifetime payout annuities to cover longevity risk & avoid investing behavior issues, and
- GLiBs - variable annuities with guaranteed minimum withdrawal benefit & guaranteed minimum income benefit to cover sequence of return risk.
I am going to have to go back and read the last half of the book more carefully. And it appears there's a (soft) sell to have a professional do the analysis.
I have heard these products discussed conceptually here many times before, but never an attempt to quantify a plan for product allocation. Has anyone done this? Have there been discussions that I've missed? Maybe the second time through I'll decide it's snake oil, but my engineer mind was intrigued the first time through...