Intelligence

Need experts on withdrawals in retirement

Reporter: Jeff Brown

Publication: U.S. News & World Report

Contact: iq@fullyvested.com

Deadline: Jun 26, 2017 12:00 pm

I’m looking for financial advisors and academics with views about when it is safe for a retiree to begin tapping principal in addition to interest and dividends. It may be out of date now, but many investors once quoted the rule “never spend principal.” But with yields as low as they are today, this is hard to live up to. So what’s the best strategy for people in or near retirement today? How do you calculate the maximum you can take from your retirement investments and still allow them to last your lifetime? There are lots of calculators in programs like Quicken and online that help with this. Are there some you would recommend? What would you advise using in variables like investment return and inflation? Would you use standard life expectancy tables, like those for required minimum distributions, or add some years for a cushion? If the calculations show your savings can’t last long enough or produce too little income, what are the most valuable spending cuts to make? What do you find yourself recommending most often? Downsizing? Working longer? What else should I be asking? Requirements: I prefer responses by email containing usable content and quotes, and because I get so many I don’t follow up on ones that merely offer a source for interview. Please include the source’s full name, title, firm and location (many firm sites are unclear about location.) Send attachments to jeffbrown@jeffbrownfinance.com.

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