Links - Retirement Finance and Planning

QUOTE OF THE DAY

"A truly safe withdrawal rate is unknown and unknowable"

CHART OF THE DAY

RETIREMENT FINANCE AND PLANNING

Is 4.5% Still Safe? W Bengen, Financial Advisor (Fa-mag.com).    [I just don't think greater than 4% withdrawal rates are prudent for early retirees for all the reasons in every post I've ever put on my blog.  If I'm wrong, flog me but the risks are too high to be cavalier.] 

Adjust the 4% Rule Enough and You Might End Up withSomething as Good as The Actuarial Approach—Part 2, Ken Steiner.  "There is no shortage of experts out there proposing adjustments to the 4% Rule to come up with what they believe is a better safe withdrawal rate approach."   

Retirement and "Family Inc," post by Me commenting on a related post at Alpha Architect.  

Opportunity Cost and The Concept ofEnough, TheFinanceBuff.  " We are back to our original problem: high earners face a large opportunity cost if they retire early; working for a high income incurs an opportunity cost in free time. Which way you go depends on the opportunity cost." 

Sustainable Retirement Spending And Market Returns, Wade Pfau.  "[a] small reduction to sustainable spending reflects just how sensitive remaining wealth is to small differences in spending rates over longer periods of time…[also] It is important to fully internalize how dependent spending rates are on investment returns. Naturally, lower returns allow for less spending." 

The World’s Most Reviled Financial Product May Save YourRetirement, Qz.com.  "Most people hate annuities. Hardly anyone buys them (pdf) and they’ve become synonymous with bad financial advice. But economists—who are also people—love annuities and can’t understand why others don’t."  

Does Asset Allocation Affect Withdrawal Rates? Wade Pfau at Forbes.  

Getting Spouse On Board with Early Retirement,Retireby40.  " This could be difficult because early retirement is outlandish especially if you are under 50."