Cashing Out in Retirement

Now this article from WSJ gives a good example of some of the typical advice that comes from the financial press. As you can see in the comments section there are many people who are opposed to the advice given in the article. In my opinion everyone is right to a degree but no one is completely accurate. That only goes for the comments I did read.  The article can be found here.
 
The article covers three major topics, which are the 4% withdrawal rule, benefits of flexibility and the importance of considering current and future taxation. All of the decisions you make in retirement will hinge on these issues as well as others.
 
My biggest issue with this article is that it makes no mention of guarantees. Maybe that’s my bias because I only offer advice that’s iron-clad. Any of the information given in the article or the attached comments can be valuable in part but the real plan to cash out in retirement requires a well rounded approach.
 
A solid base of guaranteed income can give much more power to all the different techniques and strategies noted as ways to tackle the issues you’ll face with inflation, tax law changes and market volatility among others.
 
You see, the subject of proper asset distribution in retirement hasn’t been mastered yet. As a result you see people attempting to use accumulation strategies as a way to meet distribution goals. That’s a reckless approach at best. Please don’t misunderstand my intentions here. I am a firm believer in the ability to continue asset growth through retirement but some concessions need to made first in order to cover the essentials. You’ll find that the right approach will give you many more options down the road.
 
Would you rather have plenty of income or enough money? Planning for one of those targets will give you both. Maybe it’s time to talk about what’s possible.
 
Bryan J. Anderson
 

800.438.5121 [email protected]

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