Tuesday, March 5, 2013

Retirement Income Newsbeat #6

Safe withdrawal rates have been back in the news as of late. At the Wall Street Journal, Kelly Greene tells us to "Say Goodbye to the 4% Rule." She discusses three alternatives, which include aiming for the efficient frontier of retirement income, using the required minimum distribution tables from the IRS, and Michael Kitces' take on the relationship between market valuations and safe withdrawal rates (which was developed in May 2008 and is decidedly more optimistic that my own take on the matter).

About the efficient frontier, my new column at Advisor Perspectives first summarizes the research article, and then digs into some of the assumptions to provide new material about how the results change when the assumptions change.

In Research Magazine, Moshe Milevsky wrote a column about his research showing that for those who own guaranteed income writers on variable annuities, the best strategy is often to start taking income as swiftly and quickly as possible. That was a story I had the pleasure of breaking with his permission after attending his conference last November. Now you can read his take on the matter.

On a personal note, I am now within the last couple of weeks before moving from Japan to the United States. Once I get adjusted, I will get back to a more regular blogging schedule with more new content. I've got lots of ideas for blog posts, but am struggling to find the time to implement them these days. Please stay tuned.