Retirement Income

Depending upon the decisions advisors make in the near term, their practices will either be setup for monumental growth or inevitable decline.

Before those celebrating Thanksgiving reach for a second slice of pecan pie, they should consider this: A 55-year-old woman with Type 2 diabetes will pay an average of $3,470 more a year in medical-related expenses, or close to $160,000 in total, than if she didn't have the disease.

Inflation is why the 4% rule never made any sense.

The benefits associated with exclusion-ratio taxation can be significant and should be considered when selecting the appropriate GLWB annuity for a non-qualified account.

While an individual is working, taxes are primarily determined by their salary with only minor control by an advisor. However, once they transition into retirement, their advisor becomes a tax conductor, orchestrating timing and sourcing of cash flows and disbursals to maximize their safe, post-tax spending.

There are three primary reasons the 4% rule is misguided and should be done away with when it comes to retirement spending.

Here is a discussion of taxes and legacy when estate tax is not a concern because asset levels are below the estate tax exemptions.

When it comes to relative bargains in retirement cashflow, go organic and consider the role annuities play in bringing capital efficiency to a retirement-income strategy.

Social Security’s shortfall grew by a record 18% in the last year. That $3 trillion increase means that it is more likely beneficiaries will face reduced benefits in the future, and the longer we wait the harder it will be to solve the problem.

The analytic framework for providing retirement income planning advice must use marginal tax rates and not tax brackets.

Using a risk tolerance questionnaire to establish a retirement income strategy is akin to your doctor checking your pulse to measure your cholesterol. There is nothing wrong with checking your pulse, but it is an inappropriate test for the situation. We propose an alternative test – the RISA – to select the best deaccumulation approach.

My friend who works in an emergency room as a physician assistant recently told me that she’s ready to collapse.

Amid the deluge of headlines in the past few days about congressional proposals to boost taxes on companies and the wealthy is one that would affect regular investors -- and potentially alter the entire U.S. fund landscape.

It’s unfortunate but true: Influential Republican politicians are playing another round of political chicken that could easily lead to a damaging brush with default on the national debt.

House Democrats continue to search for a way to satisfy lawmakers who want to scrap the deduction limit on state and local taxes without losing progressives wary of a tax cut that would overwhelmingly benefit the wealthy.

Creating a special advisory board will foster a better understanding of the questions facing seniors as they plan for retirement.

Here is an example that quantifies how strategic tax planning and delayed Social Security claiming can increase portfolio longevity in retirement.

On August 24 and 25, we held our second annual Thought Leader Summit. Here is a short summary of each session and a link to watch the replay for CE credits.

A California county’s $21 billion pension is considering whether to drop Ray Dalio’s hedge fund after it underperformed for most of the past 16 years.

Behavioral economics is facing a reckoning.

One of the most worrisome risks for state and local governments just got a little more manageable.

Signs are growing that U.S. Treasury yields may continue to march higher even if Federal Reserve Chair Jerome Powell strikes a balanced tone at Jackson Hole this week.

Those who inherit money after a loved one's passing often face anxiety over what to do with it. It may be a once in a lifetime chance to get ahead but there's the perennial personal finance question of whether it's better to pay off debt with the money or invest it for retirement.

With retirement, it is important to consider how declining cognitive skills associated with aging will make it increasingly difficult to self-manage your investment and withdrawal decisions.

Style boxes and other constructs of the investment industry are meaningless when it comes to portfolio theory, according to financial economist John Cochrane. Instead, investors should focus on cash flows and market equilibrium.

The next market correction will inflict its worst damage on crypto and meme investors, but those saving for retirement in a diversified, disciplined manner will suffer alongside them.

Now that in-person gatherings are back, should you ditch webinars?

I'm not a big fan of the Financial Independence, Retire Early (FIRE) movement, which advocates extreme frugality to retire as early as age 30.

Claiming Social Security too early is economically equivalent to delaying claiming, withdrawing $100,000 from a portfolio, and setting it on fire.

Most retirement planning software uses data or assumptions that will lead to unrealistically optimistic outcomes, considering our low-interest-rate environment.

A recent survey showed that only 28% of RIAs are using annuities for clients near or in retirement. But 68% said they would consider them, foretelling a dramatic increase in the coming years.

Relying on only historical U.S. returns creates an unrealistic picture of retirement outcomes. Our analysis shows that U.S. data are an anomaly among the broader global universe, and that our low-yield environment forebodes lower-than-average equity returns.

It has been my tradition to informally rate the investment-related books I read in the past year. I have also included some novels and books of general interest. Here is my list of winners and losers.

If 2020 has taught us anything, it’s that life is uncertain. Through this lens, I’ve started to abandon some conservative personal finance principles. This summer, for example, I went against the adage of “staying the course” with retirement and stuck my hand in my IRA to shed some stocks. 

There is strong demand for steady income. However, most investment products and strategies fail dismally in this regard.

How much money do you need to have to be considered rich or wealthy?

The growing use of managed accounts within 401(k) plans is threatening the financial security of plan participants and the integrity of those advisors who recommend them.

Military veterans seeking the guidance of a financial advisor have a background and career that is different from civilian clients.

In a market ruled by historically low bond yields, income-seeking investors are being driven to products that carry risks, many of which are hard to identify or evaluate.

Recent research shows how fixed annuities can add value in the context of retirement income. In addition to being able to guarantee income for life, tax benefits are often advertised as a key advantage of using annuities. This article discusses the mechanics of tax deferral in annuity products.

I present data and observations highlighting how dividends can protect investors from inflation and market volatility. While this is relevant to other applications, I focus on retirement income.

The primary goal of this article is to explain what makes dividends different. Dividends provide investors with a growing stream of income that is largely independent of market volatility. On balance, dividends are a powerful financial planning tool many retirement models seem to neglect.

The Investment Company Act of 1940 contains a loophole providing institutional investors an advantage over individual investors that some are using to the detriment of closed-end funds and their retail investors.