Retired Investor Articles
June 2026
Mapping the Safe Zone of Retirement Withdrawal Rates
AAII Journal Article by Craig Israelsen
An analysis of three retirement portfolios over 100 years addresses the tension between portfolio longevity and lifestyle goals.
April 2026
Equal Weighting Across Market-Cap Sizes Beats a Total Market Fund
AAII Journal Article by Craig Israelsen
Over 25 years, the growth of a $10,000 portfolio equally weighted between large, mid-size and small stock funds was more than $3,000 higher than that of a total stock market index fund.
January 2026
A One-Page Plan for Simplifying a Late-in-Life Portfolio
AAII Journal Article by Charles Rotblut
AAII’s PRISM Wealth-Building Process provides a framework for thinking through what simplification looks like for you.
10/09/2025
More Time Spent on Your Portfolio Can Worsen Returns
Investor Update by Charles Rotblut
A research study shows that retired investors who spent more time managing their portfolio actually hurt their results.
October 2025
Understanding the Performance Measurement Enigma
AAII Journal Article by Craig Israelsen
Why the most common method to calculate fund performance does not reflect how most people invest.
August 2025
Is 4.7% the New Safe Retirement Withdrawal Rate?
AAII Journal Article by Charles Rotblut, William Bengen, Cynthia McLaughlin
William Bengen’s latest research shows that adding asset classes allows for a higher withdrawal rate in retirement than 4%.
July 2025
Mind Over Money: Outsmarting Cognitive Biases in Retirement
AAII Journal Article by Jenna Brashear
Even the most experienced investors and planners fall prey to invisible forces that can impact retirement decisions.
June 2025
Revisiting the Use of ETFs to Construct an S&P 500 Portfolio
AAII Journal Article by Craig Israelsen
Comparing the performance of an equally weighted sector portfolio against an S&P 500 index fund over a 20-year period.
April 2025
Want More Retirement Income? Lower Your Portfolio Fees
AAII Journal Article by Craig Israelsen
Retirees who reduce their portfolio costs by using lower-cost funds realize larger withdrawals and ending wealth.
March 2025
Key Financial and Estate Planning Steps for Aging Parents and Children
AAII Journal Article by Charles Rotblut
Insights from our personal experiences can help you prepare your loved ones to handle the financial planning and management needed after your death.
March 2025
Using the Level3 Withdrawal Strategy to Achieve Growth and Stability
AAII Journal Article by Charles Rotblut
Protecting the assets needed in the near future from market downturns allows you to balance risk and return in a rational way.
January 2025
The Level3 Withdrawal Strategy Stays in Normal Mode
AAII Journal Article by Charles Rotblut
The Level3 withdrawal strategy is calling for retirees to withdraw from their equity holdings for 2025.
November 2024
It's Hard to Be Great at Everything, Including Investing
AAII Journal Article by Chris Pedersen
Although none of us, or our portfolios, can succeed all the time in all circumstances, we can all strive to improve our fit.
October 2024
Finding the Right Retirement Allocation and Withdrawal Strategy
AAII Journal Article by Christine Benz, Cynthia McLaughlin
A bucket approach provides income and growth in retirement, but flexibility with withdrawals is also key.
October 2024
Tax-Efficient Tango: The Dance Between Taxes and Returns
AAII Journal Article by Jenna Brashear
Join a vibrant discussion in the Retirement Planning and Withdrawals Community on balancing tax efficiency with performance.
July 2024
3 Ways to Redo Your Social Security Claim
AAII Journal Article by William Reichenstein
Certain circumstances may allow you to improve your retirement prospects by changing a prior Social Security claiming decision.
July 2024
Yes, You Can Rethink Your Retirement Decisions
AAII Journal Article by Charles Rotblut
Determining when to file for Social Security is just one of several big decisions to make once you reach age 70. Along the way, there are chances to correct mistakes.
May 2024
For Qualified Charitable Distributions, Timing Is Everything
AAII Journal Article by Brian Dobbis
With careful planning, a QCD can be a smart tax-planning strategy for an IRA holder taking distributions.
April 2024
How to Protect Yourself From Social Security Clawbacks
AAII Journal Article by Charles Rotblut, Terry Savage, Cynthia McLaughlin
The Social Security Administration is demanding repayment of benefits it erroneously overpaid over the years, with little recourse available to recipients.
March 2024
The Power of Holding Some Cash in a Portfolio
AAII Journal Article by Brian Haughey
An allocation to cash can make sense in many portfolios both to reduce risk and, for retirees, to facilitate increased risk.
January 2024
Level3 Withdrawal Strategy Switches Back to Normal Mode
AAII Journal Article by Charles Rotblut
The Level3 withdrawal strategy is calling for retirees to withdraw from their equity holdings at the beginning of 2024.
November 2023
How Safe Retirement Withdrawal Rates Work in Practice
AAII Journal Article by Chris Pedersen
The 4% rule doesn’t guarantee safety, but combined with some judgment and adaptation based on market conditions, it gives a very high likelihood of success.
November 2023
Five Approaches for Allocating Your Retirement Portfolio
AAII Journal Article by Charles Rotblut
Strategies that range from maintaining a high equity allocation to annuitizing fixed expenses all have their proponents.
November 2023
A Case Study: How to Reduce Marginal Tax Rates in Retirement
AAII Journal Article by William Reichenstein, William Meyer
Combining an optimal Social Security claiming strategy with a multiphase withdrawal strategy that exploits the rising and falling pattern of marginal tax rates can add substantial value to a retirement portfolio.
September 2023
The Importance of Considering Marginal Taxes When Taking Withdrawals
AAII Journal Article by William Reichenstein, William Meyer
Your withdrawal strategy should be optimized to take into account potential spikes in marginal tax rates caused by factors like taxation of Social Security benefits and income-based Medicare premiums.
August 2023
Required Minimum Distributions Explained
AAII Journal Article by Charles Rotblut
The tax code requires distributions be taken from most retirement accounts on an annual basis, known as required minimum distributions (RMDs).
July 2023
Four Tax Strategies for Retirees
AAII Journal Article by Wade Pfau
Strategic tax planning alongside delayed Social Security claiming can increase portfolio longevity and legacy in retirement.
July 2023
Changes Made to Retirement Savings by SECURE 2.0 Act
AAII Journal Article by Charles Rotblut
The rules in plain-English plus post-passage observations can help you make changes for the current and future tax years.
July 2023
Rolling With the Retirement Tide: AAII Community Shares Rollover Revelations
AAII Journal Article by Jenna Brashear
Members recently engaged in a lively conversation about retirement account rollovers, shedding light on the specific motivations behind their decisions.
January 2023
Level3 Withdrawal Strategy Goes Into Defensive Mode
AAII Journal Article by Charles Rotblut
Following last year’s bear market, AAII’s Level3 withdrawal strategy calls for retirees to withdraw from their defensive (“safe”) assets and not equities in 2023.
June 2022
Dealing With Inflation in a Retirement Portfolio
AAII Journal Article by Craig Israelsen
The RMD is a built-in inflation adjuster that allows retirees to be more cautious in their asset allocation if they so choose.
May 2022
Strategies for Determining How Much You Can Spend in Retirement
AAII Journal Article by Charles Rotblut, Wade Pfau
William Bengen’s floor and ceiling rule is one approach that is simple and works fairly well.
May 2022
Using PRISM for Investing in Retirement
AAII Journal Article by Charles Rotblut
Even those certain they will not outlive their money can incorporate aspects of the wealth-building process in their personal PRISM plan.
April 2022
Retirement Allocation Comparison With Vanguard Funds
AAII Journal Article by Craig Israelsen
While there is no single “correct” allocation to equities in a retirement portfolio, it is clear there needs to be a material commitment.
April 2022
The Coming Shift in Drawdown Patterns Among Retirees
AAII Journal Article by Charles Griswold
The lack of access to defined-benefit plans can result in the baby boomer generation underestimating their drawdown speed.
March 2022
A New Perspective on Withdrawal and Allocation Strategies for Retirees
AAII Journal Article by Wade Pfau
Factoring in worst-case scenarios for your early years of retirement helps ensure your portfolio lasts.
March 2022
The Importance of Rebalancing for Retirees and Other Investors
AAII Journal Article by Charles Rotblut
Analysis of rolling 25-year periods showed rebalancing can lead to greater ending wealth for a hypothetical retirement portfolio by shifting dollars from bonds to equities during bear markets.
February 2022
Personal Consumption Rates After Retirement
AAII Journal Article by Adam Scheg
Financial planners and researchers often assume that retirees would like to maintain a constant standard of living. However, several studies suggest that retired households decrease their consumption over time.
January 2022
Level3 Withdrawal Strategy: S&P 500 Near High in December 2021
AAII Journal Article by Charles Rotblut
To commemorate the month of Jim Cloonan’s birthday and pay homage to the legacy of education he left us, we offer an updated example of his retirement withdrawal approach using recent market conditions.
October 2021
Meaningful Diversification Can Lead to Higher Returns
AAII Journal Article by Charles Rotblut, Chris Pedersen
The author of “2 Funds for Life” discusses the trick to diversification, why holding a small number of funds works and the power of making “nudge” withdrawals.
October 2021
How Retirees Handle Portfolio Allocation, Income and Spending
AAII Journal Article by Matthew Bajkowski
Three trends regarding the actions that a majority of pre-retirees and new retirees take with their portfolios were found.
September 2021
FIRE Followers Need to Adjust the 4% Rule
AAII Journal Article by Jack Gilleland
Withdrawing 4% from retirement savings and then increasing that amount during each subsequent year of retirement is not appropriate for all retirees.
May 2021
Spending on Essentials in Retirement Is Not Fixed
AAII Journal Article by Anine Sus
Contrary to expected behavior, retirees tend to reduce their spending for basic needs more than that for non-essentials.
April 2021
The Impact of Asset Allocation on Retirement Income
AAII Journal Article by Craig Israelsen
A look at the trade-offs in retirement using two popular withdrawal strategies if you build a more aggressive or more conservative portfolio.
April 2021
Making Retirement Decisions Together Affects Preferences
AAII Journal Article by AAII Staff
When given information about how making retirement decisions in aggregate instead of alone affects outcomes, retirees changed their preferences.
February 2021
How Much of Your Retirement Income Will Go to Taxes?
AAII Journal Article by AAII Staff
One of the biggest retirement planning mistakes people make is not taking into account the taxes they will have to pay on their retirement income.
December 2020
Sequence Risk: Is It Really a Big Deal?
AAII Journal Article by AAII Staff
Sequence risk refers to the chance of running out of money in retirement due to a period of bad returns. While it can occur, Javier Estrada of Spain’s IESE Business School argues that sequence risk is commonly over-exaggerated, leading retirees to pursue overly conservative asset allocation strategies or reduce their standard of living.
November 2020
Many Retirees Limit Withdrawals to the RMD Amount
AAII Journal Article by Charles Rotblut, Ryan Reeh, Lucy Manning
Our Big Question survey gives insights into what types of accounts are favored by AAII retirees, and how they make withdrawal decisions.
November 2020
The Benefits of Building Your Own S&P 500 Portfolio Sector by Sector
AAII Journal Article by Craig Israelsen
Investing in individual funds that represent the 11 sectors of the S&P 500 allows better control when withdrawing money in retirement.
October 2020
The Importance of Personal Property in Estate Planning
AAII Journal Article by Julie Hall
When it comes to what we are leaving to our children, it’s important to know whether it is a positive or negative legacy. Four reminders to keep you on the right path.
October 2020
A Primer on Social Security
AAII Journal Article by Robert Muksian
Understanding the key concepts involved in calculating Social Security benefits can aid in your retirement planning.
October 2020
Retirees Don't Accurately Perceive Their Risks
AAII Journal Article by Anine Sus
Retirees’ expectations of their future risks differ from the more probable risks they will encounter.
10/01/2020
Navigating the Tax Consequences of Required Minimum Distributions
Investor Update by Charles Rotblut
09/24/2020
Two Retirement Withdrawal Strategies
Investor Update by Charles Rotblut
June 2020
The Relationship Between Wealth and Delaying Social Security Benefits
AAII Journal Article by William Reichenstein
Taxpayers with moderate levels of wealth can often lower the taxable portion of their Social Security benefits by delaying the start of these benefits.
March 2020
How Future Retirees Overestimate Their Benefits
AAII Journal Article by Anine Sus
A study looked at how future retirees overestimate the benefits they will receive in retirement.
March 2020
Rebalancing Update: First Signal in Six Years to Adjust Allocations Issued
AAII Journal Article by Charles Rotblut
A signal to rebalance one of our model portfolios was given following last year’s big run up in large-cap stocks.
March 2020
Key End-of-Life Planning Tasks to Complete
AAII Journal Article by Michael Falk
With estate documents and inventory lists in place, you can focus on the more important nonfinancial questions.
January 2020
You May Need a Different Kind of Financial Professional for Retirement
AAII Journal Article by Julie Jason
For those who are soon to retire or have recently retired, there is an inflection point between receiving a paycheck from an employer and a paycheck from your portfolio. What type of financial service is best for the retiree who needs to “live off of” their investments?
November 2019
Seniors—For Whom Are You Investing?
AAII Journal Article by Jonathan Pond
Retirees should consider having their investments reflect the age of whom that money is likely to be passed on to.
September 2019
Retirees Gain by Using Taxable Assets to Purchase Annuities
AAII Journal Article by Anine Sus
A study determined that in general it may be more beneficial for retirees to purchase annuities using their taxable savings instead of funds from a traditional iRa or Roth plan.
September 2019
Optimizing Retirement Withdrawals Using the Level3 Strategy
AAII Journal Article by John Bajkowski
The Level3 withdrawal approach allows you to stay invested in assets that offer the greatest potential for long-term wealth growth while satisfying current funding needs with an allocation to short-term (defensive) assets.
August 2019
Using Portfolio Returns to Determine When to Claim Social Security Benefits
AAII Journal Article by Brian L. Betker
Upon reaching full retirement age, a retiree can look back at the performance of their nest egg portfolio to determine whether to claim immediately or wait until credits for delayed claiming stop.
06/28/2019
Limiting Required Minimum Distribution Costs
Update by AAII Staff
The IRS does not specify how you should free up the cash to take required withdrawals in retirement, only that you take the money out. This lack of specificity provides you with some flexibility to limit transaction costs.
04/05/2019
A Simple Formula for Calculating “Safe” Retirement Spending
Update by AAII Staff
New research has called into question the long-standing 4% retirement spending rule.
April 2019
Retirees' Happiness Correlates With Participation in Active Versus Passive Activities
AAII Journal Article by Anine Sus
A study looking at levels of happiness among retirees when engaged in various activities found that retirees are happier when they engage in active activities over passive activities.
April 2019
Health Insurance in Retirement: Medicare and Beyond
AAII Journal Article by Steve Vernon
The risk of high medical bills during retirement calls for a well-thought-out plan, especially at age 65, when you’re eligible for universal medical coverage under Medicare. Many crucial aspects of health insurance have the potential to save you a lot of money—or cost a lot if you aren’t paying attention.
March 2019
Rebalancing Update: The Market's Volatility Eliminated the Need to Adjust Allocations
AAII Journal Article by Charles Rotblut
The volatility incurred in 2018 was high enough to bring the equity allocations back toward their targeted range, preventing the need for rebalancing.
February 2019
Majority of Retirees Regret Not Saving More for Retirement
AAII Journal Article by AAII Staff
Many of those who are currently in retirement do not believe they have a large enough nest egg and are aware that they should have saved more on a regular basis.
11/08/2018
How Much Can You Withdraw From a Portfolio and Not Outlive It?
Investor Update by Charles Rotblut
The longer one’s expected life-span in retirement is, the smaller the withdrawal rate should be.
November 2018
Revisiting the Risks of Retirement Spending Rules
AAII Journal Article by Charles Rotblut
Find out the risks of spending only portfolio income, spending returns or making inflation-adjusted withdrawals.
July 2018
Retirement Planning Mistakes Investors Often Make
AAII Journal Article by AAII Staff
Planning for the transition to and life in retirement is an area where many common mistakes are made.
July 2018
For Bucket Portfolios, the Devil Is in the Details
AAII Journal Article by Christine Benz
Guidance on implementing a bucket strategy in a real-world retirement portfolio, including portfolios with more than one type of account.
June 2018
Out-of-Pocket Health Care Spending for Retirees
AAII Journal Article by AAII Staff
Out-of-pocket health care expenditures may be less than projections suggest for the majority of retirees. A small proportion of retirees, however, will incur substantial out-of-pocket expenses because of nursing home care.
April 2018
Rebalancing Update: 4.5% Withdrawal Rate and Rolling Periods
AAII Journal Article by Charles Rotblut
Increasing the withdrawal rate led to bigger distributions, but lower ending wealth. Altering the investing period also has an impact.
April 2018
Are You Spending Too Little in Retirement?
AAII Journal Article by Meir Statman
While mental tools and self-control are useful when saving, in retirement, they can stop us from spending on ourselves and family.
April 2018
Social Security and Medicare Can Raise Retirees' Tax Rates
AAII Journal Article by William Reichenstein, William Meyer
Higher levels of income not only affect the taxation of Social Security benefits, but can also lead to higher Medicare premiums.
January 2018
Insights on Using the 4% Withdrawal Rule From Its Creator
AAII Journal Article by Charles Rotblut, William Bengen
Bill Bengen explains why he now suggests a 4.5% withdrawal rate and what the biggest threat to his withdrawal strategy is.
November 2017
The Level3 Withdrawal Strategy to Maximize Your Long-Term Wealth
AAII Journal Article by John Bajkowski, James B. Cloonan
Creating a cash bucket with up to four years of expenses allows a retiree to avoid selling stocks during periods of down markets.
October 2017
Strategies for Managing Required Minimum Distributions
AAII Journal Article by Robert Carlson
Retirees have options when it comes to RMDs, including Roth IRA conversions, trusts, charitable donations, life insurance and emptying the IRA early.
September 2017
When Is the Best Time to Take Your RMDs?
AAII Journal Article by Jenna Brashear
To decide when to take your required minimum distribution (RMD), you’ll need to understand the pros and cons of making RMD withdrawals earlier or later in the year.
May 2017
Common Questions About Medicaid and Medicaid Planning
AAII Journal Article by John Horn, Dera Johnsen-Tracy
Estate planning and gifting strategies can be used to preserve assets, while still allowing a person to maintain eligibility for Medicaid.
April 2017
Asset Allocation, RMDs and Portfolio Survival
AAII Journal Article by Craig Israelsen
A diversified portfolio not only increases return relative to risk, it can also boost the amount of income provided by RMDs.
March 2017
Rebalancing Update: How Frequently Allocations Should Be Adjusted
AAII Journal Article by Charles Rotblut
By allowing some fluctuation in the allocations, the models tracked have, on average, required rebalancing just once every three years.
February 2017
Strategies for Unneeded RMDs
AAII Journal Article by AAII Staff
Required minimum distributions from retirement plans can create a quandary for those who do not need the money. Suggestions on what retirees in this situation can do with the unwanted cash.
May 2016
Keep Taxes From Cracking Your Nest Egg
AAII Journal Article by Stephen M. Horan
Selectively choosing which accounts to withdraw from can minimize taxes throughout all your retirement years.
May 2016
Retirement Portfolio Survival: A 90-Year Study
AAII Journal Article by Craig Israelsen
While a conservative allocation lasts 35 years at a 3% withdrawal rate, higher withdrawal rates require greater exposure to stocks.
March 2016
Rebalancing Update: A Tiny Raise for Retirees
AAII Journal Article by Charles Rotblut
Even with last year’s volatility, no rebalancing was required. Low inflation caused the withdrawal amounts to increase only slightly.
September 2015
Mathematical Support for Rising Equity Glide Paths
AAII Journal Article by Luke Delorme
Increasing exposure to stocks in retirement can reduce the chances of running out of money and allow for a larger withdrawal rate.
June 2015
Stocks: An Underappreciated Asset Class in Retiree Portfolios
AAII Journal Article by Stuart Ritter
Even in retirement, it is important to maintain a large allocation to stocks.
April 2015
Increasing Retirement Withdrawal Rates Through Asset Allocation
AAII Journal Article by Michael Kitces, Wade Pfau
The optimal equity allocation depends on market valuations, though a fixed 60% stock/40% Treasury bill allocation works well overall.
April 2015
Rebalancing Update: Retirement Adjustments Necessary
AAII Journal Article by Charles Rotblut
A retiree following the rebalancing model would have needed to rebalance at the end of 2014 because of the gains in large- and mid-cap stocks.
October 2014
Advocating the Paycheck Strategy for Lifetime Investing
AAII Journal Article by Hildy Richelson, Stan Richelson
A predictable flow of cash income can be obtained by holding a ladder of high-quality bonds.
June 2014
Making Effective Use of IRAs as Part of an Estate Plan
AAII Journal Article by Daniel Sudit, Kevin G. McCandlish
Bequesting your IRA to charity, naming grandchildren as beneficiaries of your Roth IRA or having a heir disclaim an IRA inheritance can lower your estate’s tax exposure.
April 2014
Reduce Stock Exposure in Retirement, or Gradually Increase It?
AAII Journal Article by Michael Kitces, Wade Pfau
Starting retirement with a 30% allocation to equities and then gradually increasing it to 70% leads to a 95.1% probability of not outliving your savings.
April 2014
A More Dynamic Approach to Retirement Spending
AAII Journal Article by Colleen M. Jaconetti, Francis M. Kinniry, Michael DiJoseph
Establishing a “ceiling and floor” for portfolio withdrawal rates keeps spending relatively consistent, while remaining responsive to market conditions.
October 2013
The Advantages of Charitable Trusts
AAII Journal Article by Christine S. Fahlund
Charitable trusts allow you to donate assets, while providing lifetime income for yourself or someone else. They can also reduce estate taxes on appreciated assets.
July 2013
Safe Withdrawal Rates and Certainty-Equivalent Spending
AAII Journal Article by Druce Vertes
The size of initial withdrawal rates depends on a retiree’s willingness to accept both portfolio volatility and variability in his annual spending rates.
June 2013
Determining When to Switch to the RMD
AAII Journal Article by Charles Rotblut
Determining when to change from the 4% withdrawal rule to the RMD depends in part on your age and the types of retirement accounts you own.
May 2013
Addendum: Adjusting Retirement Withdrawals for Inflation
AAII Journal Article by Charles Rotblut
An addendum to the May 2013 AAII Journal article “Taking Retirement Withdrawals From a Fund Portfolio” that takes inflation into account when calculating withdrawal amounts.
May 2013
Taking Retirement Withdrawals From a Fund Portfolio
AAII Journal Article by Charles Rotblut
A portfolio that could have been duplicated by investors is used to demonstrate how to take withdrawals and the potential pitfalls that are encountered.
April 2013
A Key to a Lasting Retirement Portfolio
AAII Journal Article by John Sweeney
Staying within or below a 4% to 5% withdrawal rate (adjusted annually for inflation) will decrease your risk of outliving your retirement savings.
December 2012
Retirement Withdrawals: Can You Base Them on RMDs?
AAII Journal Article by Wei Sun, Anthony Webb
The IRS’s required minimum distributions are easy to follow and with a little modification can set the basis for a more optimal withdrawal strategy.
July 2012
Finding the Right Withdrawal Rate: One Key to
Portfolio Sustainability
AAII Journal Article by Maria Crawford Scott
A proper withdrawal approach ensures your retirement savings last, and allows you to separate your allocation decisions from your income needs.
July 2012
Allocating for Final Goals
AAII Journal Article by Charles Rotblut
Allocating for expenditures such as a charitable legacy simply requires budgeting and segregating the amount away from your retirement savings.
April 2012
Comparing a Bucket Strategy and a Systematic Withdrawal Strategy
AAII Journal Article by Noelle E. Fox
Allocating a portfolio into three buckets for use in specific retirement time periods can help investors feel more confident that their savings will last.
November 2011
Retired Investor: Getting Through Difficult Markets
AAII Journal Article by Julie Jason
Having a goal-oriented skill set can help you cope with turbulent markets and move toward a secure retirement.
September 2011
Retirement Spending on Planet Vulcan: Longevity Risk and
Withdrawal Rates
AAII Journal Article by Moshe A. Milevsky, Huaxiong Huang
The optimal amount to withdraw depends on survival probabilities, pension income, legacy goals and the willingness to risk outliving one’s assets.
July 2011
Aging’s Adverse Impact on Decision Making
AAII Journal Article by Charles Rotblut
Declines in cognitive capacities can hurt your ability to effectively manage your finances.
May 2011
Limiting Required Minimum Distribution Costs
AAII Journal Article by Charles Rotblut
Use retirement account income and transactions to lower the cost of freeing up cash for required minimum distributions.
April 2011
Investing for Retirement Requires a Disciplined Approach
AAII Journal Article by Jerome Clark
Maintaining a substantial equity exposure before and during retirement helps you achieve long-term financial goals.
July 2010
Allocation in Retirement: A Flat Glide Path Always Make Sense
AAII Journal Article by Josh Cohen
For any downward sloping glide path of equity allocation once you hit retirement, a flat one can be created that is better in terms of its risk and reward trade-off.
November 2009
How to Create Your Own Pension: A Closer Look at Immediate Annuities
AAII Journal Article by Julie Jason
How would you like to have lifelong income even after you retire? That’s what it’s like to receive a pension. What if you don’t have one? One option is to buy a product that will create one for you—an “immediate annuity,” which is the oldest product of its kind in the marketplace.
February 2009
Retirement Income: Repairing the Damage to Assure the Flow
AAII Journal Article by Christine S. Fahlund
If you are living off your retirement savings and have suffered a severe portfolio loss, what is your best course of action to ensure your savings can be sustained? A new T. Rowe Price retirement income study compared various withdrawal strategies.
July 2008
Will Your Savings Last? What the Withdrawal Rate Studies Show
AAII Journal Article by William Reichenstein
Determining a "safe" withdrawal rate for retirement savings is a tricky balancing act for retirees. If it is too large, they may run through assets too quickly, but if it is too little, their lifestyle will be below where it could be. Many studies have attempted to determine the "maximum" safe rate. Lessons from what the studies have found.
August 2005
Withdrawal Rules: Squeezing More From Your Retirement Portfolio
AAII Journal Article by Jonathan Guyton
How much can you withdraw annually from your retirement portfolio? By incorporating systematic decision rules, you may be better able to maintain your desired living standard.
January 2005
Retirement Withdrawals: What Rate Is Safe When Time Is Short and Uncertain?
AAII Journal Article by Carl M. Hubbard
Portfolio Strategies: Most studies that examine sustainable retirement withdrawal rates cover payout periods of 15 to 35 years. But what happens when circumstances shorten the period? A look at how much you can safely withdraw over shorter payout periods.
May 2004
Maintaining the Flow: Will Foreign Stocks Help Your Retirement Portfolio?
AAII Journal Article by Carl M. Hubbard
Recent studies call into question the risk-reduction benefits of international diversification. Retirees want to know if foreign stocks can improve their portfolio performance enough to allow them to withdraw more each year.
February 2004
Retiree Stock Allocation Recommendations: Do You Fit the "Mold"?
AAII Journal Article by William Reichenstein
How much of your portfolio should be invested in stocks if you are living off of your retirement savings? A look at where the professional advisors agree and disagree concerning the "typical" investor.
November 2003
Allocation During Retirement: Adding Annuities to the Mix
AAII Journal Article by William Reichenstein
At its most basic level, the decision to annuitize involves the trade-off between longevity risk and the bequest motive: The major advantage of annuitization is the reduction in longevity risk.
July 2003
Retirement Planning: Annuities and When They May Make Sense
AAII Journal Article by William Reichenstein
Low-cost annuities can make sense when compared to taxable investments for bond investors and active stock investors with long investment horizons. They do not make sense for long-term buy-and-hold investors.
May 2002
Liquidating Retirement Assets in a Tax-Efficient Manner
AAII Journal Article by William A. Raabe
When you enter retirement, you retire from work, not from decision-making. For example, which assets should you withdraw first--taxable or tax-deferred? Decision rules for a typical retiree to keep tax liabilities to a minimum.
May 1996
Assessing Your Portfolio Allocation From a Retiree's Point of View
AAII Journal Article by Maria Crawford Scott
Portfolio Strategies Workshop: Retirees need to check their portfolios periodically to ensure that savings will last. Assessing your portfolio: A case study.