Hi Jan,
Age tells you where you are on the calendar. It does not tell you whether your portfolio is built for what you are asking it to do. This week we look at a better way to size that up. It means comparing what you have against what you need, using a measure called the funded ratio, instead of defaulting to age-based rules of thumb. Two people can share the same age and end up with different funded ratios, and that difference tells you more than the birthday ever will.
| | | | Your Age Is an Imperfect Guide to Investment Risk A restaurant can be packed every night and still struggle financially. Knowing how much revenue comes through the door tells you something, but not nearly enough. You also need to know what it costs to operate and what obligations must be paid. Retirement portfolios deserve the same treatment. An account balance, or the age of the person who owns it, provides useful information, but neither tells us whether the resources are sufficient for the job ahead.
By Retirement Researcher | | | | How Much of Your Retirement Income Should Be Guaranteed? A central component of retirement income planning is estimating how much you can spend without running out of money. Equally important, however, is deciding where that income should come from.
By McLean Asset Management
| | | | Are You Overinvested in Bonds? The Retirement Math May Surprise You
This episode works through listener questions on asset allocation, starting with a Wall Street Journal argument that many affluent retirees are holding more bonds than they need. Wade and Alex also debate the case for claiming Social Security at 62 versus delaying it, and compare a tips ladder to an annuity for retirees further along in retirement.
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