Monday, December 6, 2010

The Big Financial Stretch: Preparing for Those Later Decades

The Big Financial Stretch: Preparing for Those Later Decades
Knowledge@Wharton (December 06, 2010)

Good article.  Two comments:

The article asks (but does not answer) the question, "How much is enough for retirees to live on?"  I hope that visitors to this site realize that they can use the simple spreadsheet to "back into" how much accumulated savings they will need to produce their desired level of real annual income in retirement.

This is another article that raises concerns about the 4% Withdrawal rule.  "Critics say such guidelines should not be blindly followed.  The 4% rule 'just doesn't work' when investments are tumbling, says Stezfand [Director of Financial Security] of AARP."