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Title : "Even the experts have trouble saying how to pace your spending so you can enjoy retirement without exhausting your savings before you die."
link : "Even the experts have trouble saying how to pace your spending so you can enjoy retirement without exhausting your savings before you die."
"Even the experts have trouble saying how to pace your spending so you can enjoy retirement without exhausting your savings before you die."
"You can’t know for sure how long you’ll live, whether you’ll suffer a costly illness or how markets will perform.... Decumulation isn’t just a tough financial problem. It can be an emotional strain to flip a switch from saving to dissaving.... Do you keep a big nest egg, or do you convert your savings into a stream of monthly checks? The smart but psychologically difficult choice is to at least partly annuitize — that is, buy a financial product that provides a monthly income. When you buy a life annuity, the seller takes on the risk that you will live to age 110. That’s a big load off your mind. What makes it hard on your psyche is that to get a decent-size annuity, you have to turn over a big chunk of your life savings to the seller, usually an insurance company. For most people, especially younger retirees, some exposure to stocks makes sense. But grasping for high returns to compensate for years of undersaving is unwise. Do you lose sleep when the market plunges — or, worse, sell your shares and lock in big losses? Then you’d be better off in something safer...."From "How to Enjoy Retirement Without Going Broke The problem of decumulation is a tricky one, even for Nobel Prize-winning economists" by Peter Coy (NYT).
Of course, it's tricky. You're mixing actual finance with the most intensely personal emotions, and the biggest factors are immense and disturbing uncertainties: What will the markets do and when am I going to die?
Anyway... I learned 2 new words: "decumulation" and "dissaving."
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"You can’t know for sure how long you’ll live, whether you’ll suffer a costly illness or how markets will perform.... Decumulation isn’t just a tough financial problem. It can be an emotional strain to flip a switch from saving to dissaving.... Do you keep a big nest egg, or do you convert your savings into a stream of monthly checks? The smart but psychologically difficult choice is to at least partly annuitize — that is, buy a financial product that provides a monthly income. When you buy a life annuity, the seller takes on the risk that you will live to age 110. That’s a big load off your mind. What makes it hard on your psyche is that to get a decent-size annuity, you have to turn over a big chunk of your life savings to the seller, usually an insurance company. For most people, especially younger retirees, some exposure to stocks makes sense. But grasping for high returns to compensate for years of undersaving is unwise. Do you lose sleep when the market plunges — or, worse, sell your shares and lock in big losses? Then you’d be better off in something safer...."
From "How to Enjoy Retirement Without Going Broke The problem of decumulation is a tricky one, even for Nobel Prize-winning economists" by Peter Coy (NYT).
From "How to Enjoy Retirement Without Going Broke The problem of decumulation is a tricky one, even for Nobel Prize-winning economists" by Peter Coy (NYT).
Of course, it's tricky. You're mixing actual finance with the most intensely personal emotions, and the biggest factors are immense and disturbing uncertainties: What will the markets do and when am I going to die?
Anyway... I learned 2 new words: "decumulation" and "dissaving."
Thus articles "Even the experts have trouble saying how to pace your spending so you can enjoy retirement without exhausting your savings before you die."
that is all articles "Even the experts have trouble saying how to pace your spending so you can enjoy retirement without exhausting your savings before you die." This time, hopefully can provide benefits to all of you. Okay, see you in another article posting.
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