FYI: Do you expect to spend the same amount in each and every year in retirement?
Of course not. Yet many financial plans nevertheless assume that you will. The famous 4% rule, for example, grew out of research about what steady withdrawal rate you could maintain throughout retirement and never run out of money—even if the markets perform as terribly as they have in the worst periods in U.S. history.
By definition, of course, avoiding the worst-case scenario ends up, in most cases, leaving a lot of money on the table. New research shows that there is a better way.
This new research, which began circulating in academic circles earlier this month, was conducted by Javier Estrada, a professor of finance at IESE Business School in Barcelona. His new study is entitled: “Managing to Target (II): Dynamic Adjustments for Retirement Strategies.”
Regards,
Ted
https://www.marketwatch.com/story/how-to-make-your-retirement-savings-last-forever-2019-09-11/print“Managing to Target (II): Dynamic Adjustments for Retirement Strategies.”:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3448056
