What the Experts Say About 4% Withdrawal Rates

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The Zone System for Choosing Retirement Income Products, Part 1

How do you decide which product to use when your client needs lifelong income—especially if his retirement savings aren't what they should be? One advisor classifies his clients into zones to decide whether to go with an investment portfolio or buy a life or variable annuity. Here is his system for making these crucial product decisions. Part 1 of 2.

14 Withdrawal Strategies That Won't Protect, Extend, or Defend Retirement Income

In the quest for lifelong retirement income, many advisors and their clients follow strategies that have yet to be proven. Will a buy-and-hold portfolio hold up for 30 years? (Only if you're lucky.) Will a low-risk portfolio have a longer life? (There's a 60% chance of depletion.) How about buying a term annuity and investing the rest? (Then you face a 56% chance of depletion.) We identify the strategies and their probability of success.

A 3-Factor Formula for Projecting Retirement Income

One important measure missing from most retirement projections is the time value of fluctuations (TVF). The TVF quantifies the losses in a retirement portfolio stemming from factors beyond our control. Ignoring it can cause irreparable damage to retirement plans and pension funds.

Calculating Retirement Income Replacement Rates

Retirement income replacement rates are usually based on how much clients intend to spend during their golden years—but that may not be sufficient. A good analysis must also take into account investment risk, longevity risk, and health care costs.