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dynamic spending

A simple trick to make your money last (The secret: Dynamic spending rules)

A few weeks ago, I gave you six ways to make your nest egg last.  It’s an important topic, so here’s a seventh: Dynamic Spending.  There’s a growing body of research that shows it can significantly extend the life of your portfolio.  What is it and how does it work? In retirement, like in your […]

make your nest egg last

Six ways to make your nest egg last

“Will my money last?”  That’s the biggest concern for most retirees.   What can you do to stretch your retirement dollars for as long as possible?  A recent article in the Journal of Financial Planning (JFP) analyzed six factors and the role each played in portfolio longevity.  (Determinants of Retirement Portfolio Sustainability and Their Relative Impacts, […]

how spending changes throughout retirement

How spending changes throughout retirement

When planning for retirement, you need to make a lot of assumptions.  How long will you live?  What will your investment returns be?  How much income will you need?  When it comes to that last one, most people just estimate their first year of retirement expenses and then adjust that amount higher each year to […]

retirement readiness flow chart

Retirement readiness flow chart

This week is National Retirement Planning Week, so I thought it would be good to give everyone a quick reminder of what it takes to get ready to retire.  Sure, saving enough money is important, but retirement is more than just a math problem.  There are plenty of other things involved as well.  With that […]

income replacement ratio

Why retirement will be cheaper than you think.

Will retirement be cheaper than you think?  Maybe.  A lot depends on your income replacement ratio.  What’s that you ask?  It’s the percentage of your current income that you will need during retirement to maintain your standard of living. Some people will need 100% of their current income.  Others will be able to get by […]