Sentences with phrase «early in retirement»

The T. Rowe Price calculator offers a straightforward but flexible retirement planning tool that works whether you're early in the retirement savings mode, or already retired.

Going back to Mr. Pfau's and Mr. Kitces» analysis, having a low equity allocation early in retirement effectively minimizes the simulations where market returns were poor to begin with.

Super Saver presents Retiree Financial Lessons from the Recession posted at My Wealth Builder, saying, «Although I wish this recession had not happened, I am glad that it happened early in our retirement, while we were better able to meet the financial challenges.

Since you are withdrawing, a significant drop early in retirement makes a BIG difference in the length of time your nest egg will last.

The idea is that you insure you'll have income flowing in late in retirement while parting with less money upfront than you would with an immediate annuity, leaving more of your savings for spending early in retirement.

The challenge: Pull enough from your savings each year to provide the spending cash you need without going through your stash too soon, while also not drawing so little that you unnecessarily stint early in retirement and end up with a big pile of savings in your dotage when you can't enjoy it.

Depending on whether we get good or bad results early in retirement, we might need a lower or higher average return.

Just as the high cash flow from a life annuity can work to reduce portfolio withdrawals early in retirement, a reverse mortgage — taken early — does the same thing.

A stock market crash early in your retirement can be a problem.

What if the market crashes early in your retirement?

Perhaps you just want a bit of assurance that you'll still be financially secure late in life even if you overspend early in retirement, or maybe you just want to be sure that no matter what you can count on some extra guaranteed income you can use in your dotage for medical expenses or whatever.

To avoid substantial stock declines early in retirement, I've been thinking about maintaining at least 5 years worth of cash in a money market account (or TIPS ladder) to satisfy living expenses.

4) How will you deal with bear markets, particularly ones that occur early in retirement?

That means many retirees — depending on personal expenses — may need more income early in their retirement than later.

One recent proposal, for example, involves a contrarian idea of starting with a modest amount of stocks early in retirement and then gradually increasing your stock stake as you age.

If you're unfortunate enough to get hit with such a big loss, or even an extended period of weak gains, especially early in retirement, the chances of your retirement savings lasting 30 or more years with 4 % - plus - inflation withdrawals can drop from 80 % or 90 % to 60 % or lower.

But that still leaves the other threat to your retirement security — namely, a big market downturn early in retirement.

But ending up with a large nest egg late in life could mean that you economized unnecessarily early in retirement, the very time when you probably could have most enjoyed spending some extra dough traveling, trying out new hobbies or other activities or just indulging yourself occasionally.

Or you could lighten up on stocks, figuring you don't want to run the risk of a big setback early in retirement that could shorten the longevity of your portfolio.

And if you end up dying relatively early in retirement, you could receive less in payments than you paid for the annuity.

>> AVOIDING RETIREMENT REVERSALS Recent research from the Employee Benefit Research Institute (EBRI) says that the lowest - income households can experience financial difficulties quite early in retirement, with as many as 43 % running short of money in the first year after retiring.

Taking out a HECM early in retirement and keeping the credit line open for use in the future proves to be a popular strategic plan.

Fact is, a hit to your nest egg, especially early in retirement, can dramatically increase your chances of running out of money during your lifetime.

Since it may be hard to gauge your exact income needs early in retirement, I think it makes sense to go cautiously — that is, invest a small amount in an annuity (if any) initially, then re-evaluate and buy more guaranteed income later if you need it.

But it could mean that you lived more frugally than you had to early in retirement when you were young and healthy and might have enjoyed spending more and indulging yourself occasionally.

Many retirees spend more freely early in retirement, then cut back only to spend more again as they incur higher medical expenses late in life.

The potential probems with a nest egg approach were mainly 1) the danger of a major market downturn early in retirement, and 2) inflation eating into your spending power, thereby necessitating larger - than - expected withdrawals against the principal.

The upside: If you die early in retirement, your favorite charity stands to benefit, rather than an insurance company.

While dividend reinvestment may be the right choice early in your retirement, it may become a less profitable strategy down the road if you incur increased medical expenses or begin to scrape the bottom of your savings accounts.

â $ œSo the idea that you should spend frugally early in retirement so you have lots of money later on is not necessary for most people.â $

Just don't tap into the equity early in retirement for a frivolous purpose.

✓ Social Security and / or pension benefits won't cover your regular expenses ✓ You're a pre-retiree or early in retirement ✓ You've accumulated between $ 250,000 and $ 5 million in retirement savings ✓ You have average or above - average health ✓ You're seeking greater certainty in retirement and more of an insurance product ✓ You don't need access to the money immediately

We have determined that proper use of 20 % cash in a portfolio provides a reasonable ability to withstand the bad luck of a stock market crash early in retirement, while at the same time performing reasonably well in other potential future stock market scenarios.

Of course, you'll get zilch or very little from the longevity annuity if you die before or soon after payments begin, which would mean you gave up money you could have spent early in retirement in return for payments that never materialized.

What if you have a client who needs to make a significant withdrawal during a bear market early in retirement?

I would surmise that doing so very early in retirement (or better yet, in the five or so years before retirement would most offset the taxes incurred by the fees eliminated and thus saved.

That can be a dangerous assumption as recent research on household spending from the Employee Benefit Research Institute shows that many people actually increase their spending early in retirement.

For example, if the stock market tanks or delivers a string of anemic returns, especially early in retirement, the combination losses or low principal growth and withdrawals could so deplete your nest egg's value that you might run out of dough sooner than anticipated.

«Research has consistently shown that strategic uses of reverse mortgages can be used to improve a retiree's financial situation, and that reverse mortgages generally provide more strategic benefits when used early in retirement as opposed to being used as a last resort.»

Sequence Risk: A major stock market downturn, especially early in your retirement, can devastate the potential of your portfolio to generate sufficient income throughout retirement.

The rationale is that by starting out with a more conservative mix better protects your portfolio from being decimated by big stock market downturns or subpar returns early in retirement a rising equity glide path reduces the risk that you'll run through your savings too soon.

Helping to protect income from potential market losses is especially important early in retirement.

By setting up a reverse mortgage early in retirement, borrowers are able to draw from their home's equity instead of their 401 (k) plans or IRAs in times of low investment returns.3 So, when the stock market is yielding low returns, these retirees use the money from their reverse mortgages to live off of while allowing their investment portfolios to recover.

A market downturn can have a big impact on retirement savings, especially early in retirement when people begin taking withdrawals.

You may get lucky, of course, but if you hit a market downturn early in retirement, withdrawing more than 4 % a year can deplete your savings to such an extent that your portfolio never recovers.

If it appears your savings are likely to run out early in retirement, you can see how alternative scenarios, such as cutting back on spending or postponing retirement a few years, might tilt the odds more in your favor.

If you spend too freely early in retirement, you may not have the cash you need later in life.

Even if you only get sideswiped by several years of unusually low returns early in your retirement, you can wind up with far less than you had bargained on.

It's predicated on the notion that a stock market slump, especially early in your retirement, can devastate your retirement.

And if you happen to get hit with big losses early in retirement, your nest egg could have trouble recovering from the combination of withdrawals and investment losses.