The 2013 Retirement Confidence Survey has been released by the Employee Benefit Research Institute. The findings expose severe problems among retirement savers.
The retirement planning experts are relentless in their gloom and doom predictions for baby boomer retirements. Sadly, the data appear to back up these pessimistic predictions. Can anything be done?
The “Can I retire?” assessment (sometimes characterized as the “Will I be able to retire?” quiz) typically distills down to three basic parts. The first part is a principle: We want the freedom to spend “x amount” every year while I am retired. (We also want our spending to keep pace with inflation, of course.) The second part requires a careful look at (and accurate quantification) of your current retirement nest egg. Third, we have the payoff question: Can I safely generate at least an “x amount” of income from my retirement nest egg until I die?
As we move through our gradual glide path to eventual retirement, my goal is to show a steady increase in our net worth. I’m not looking to hit home runs. I just want to be sure that when the day come, our nest egg is large enough to support our retirement spending plan.
Forbes likes to publish online slide shows in the personal finance domain. A recent slide show topic: “10 Terrible Pieces of Retirement Advice.” I read it and take issue with some of it. Let’s see if you agree or disagree with Forbes or with me.
Social Security retirement benefits are a target of fiscal cliff spending cut advocates. One specific proposal is to modify how cost of living adjustments are made to annual Social Security retirement benefits. I don’t get it.
It is estimated that 10,000 baby boomers are retiring every day. Most will depend heavily on Social Security retirement benefits. Particularly for a married couple, the decision on when and how to claim Social Security can be complex. This has resulted in the launch of services designed to advise you on how to maximize Social Security retirement income, based on your individual circumstances. I like the concept and will probably use one or more of these services when I approach full retirement age. I turn 62 next month but I already know I will not claim that early.
Have you read about the “4-box strategy” for matching your retirement income to your retirement expenses? You should because it makes sense for the careful planner worried about retirement income survival.
A researcher (Ph.D. in Economics) with the National Graduate Institute for Policy Studies has recently published a provocative paper on how to most efficiently produce retirement income. A somewhat radical conclusion is that for a 65 year old married couple using a 4% withdrawal rate to meet retirement spending needs, bonds (or bond funds) should not be part of their retirement portfolio.
Time again for a brief update of our retirement portfolio performance and net worth progress. Monitoring and quantifying these changes is my way of systematically evaluating whether we are improving the financial aspects of our retirement readiness.