Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Just a good summary of the tools we all have to work with from Wade Pfau's excellent blog. The link is worth reading in it's (short) entirety IMO.
Pensions, Retirement Planning, and Economics Blog: The Retiree Toolkit
Pensions, Retirement Planning, and Economics Blog: The Retiree Toolkit
The Retiree Toolkit
Developing a retirement income strategy is an individualized process which uses building blocks from a retirement toolkit. No single approach or product works best for everyone. But crafting together these various pieces can help result in a strategy to obtain a sustainable income for the remainder of one’s life. I’ve taken to calling this the retiree toolkit and “building blocks” for the toolkit. Recently I read an article by Steve Vernon describing* the same basic idea, and he calls it the retirement income menu.
The way I see it, the basic building blocks for a retirement income strategy are:
1. Social Security:
2. Part-time work:
3. Bond ladders:
4. Single Premium Immediate Annuities (SPIAs):
5. Systematic withdrawals from a volatile portfolio:
6. Variable Annuities with Guaranteed Lifetime Withdrawal Benefit riders:
Other honorable mentions for this list include reverse mortgages, long-term care insurance, and life insurance.
That’s the basic list. Now it is just a matter of fleshing out the details for each of these building blocks, quantifying their pros and cons, and considering how to best combine them to help individual retirees to best meet their goals.
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