• Managing Money in Retirement II: Income for a Lifetime

    This is the second of a series of posts on retirement withdrawal strategies.  If you haven’t read Managing  Money in Retirement I, please read it first!  Most of us would feel more comfortable having a reliable source of income in retirement — at least enough to cover our essential needs – rather than being completely at the mercy of uncertain investments in stocks, bonds, real estate or more exotic things.   As a practical matter, though, how can we go about building the floor of a floor-and-upside strategy?    First, let’s define what we’d like in the ideal world.  The best source of income would be an inflation-indexed payment, lasting for…

  • Managing Money in Retirement I: How Much Can I Withdraw?

    Welcome back, and Happy New Year!  My first posts covered how much to save for retirement.  In the next several posts, I explore how to manage savings and withdrawals once you’re in retirement.  OK, so you’ve made the break, attended your last office party, and are no longer punching a clock.  How should you handle your savings?  How much can you withdraw and spend every year?  Wait a minute, you say – didn’t the last couple of blogs already answer that question?  Why not withdraw 4% of your savings in the first year, then increase that with inflation each year to keep the purchasing power the same? Well, you would…