No. of Recommendations: 0
I just finished reading all about how much to take out for retirement and conclude it is only academic fodder. What is the big deal? The only thing you have to do is put variables into a future value of an annuity that you can do in Excel. The only secret is to know how long you will live. Otherwise, using average figures will give you an idea of what you can take out and die broke.

For those who wish to leave principal for their heirs, look for and read the book on dying broke.

One other point that bugs me in all these studies is that it assumes that as one ages, money needs are constant. I really do not think that I will spend as much money (yes, include inflation and medicines) when I am in my 80's as I need now in my 60's. Most retirees with any sustainable investment portfolio will probably have a paid up mortgage. What prices are going to rise that would wipe out a portfolio and send me into poverty? Think about what you spend money on. How much of your budget is food? As you age you will eat less. How much for clothing? As you retire you think less about clothes. See what I mean?

Studies that include any data older than 10 years are analagous to trying to drive one's car by only looking at the rear view mirror! The ability to forecast alternatives and adjust to changing scenarios is unlike anything that existed over 10 years ago for the average person.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement