Blog Posts

  • Should You Stick to the 4% Withdrawal Rule in a Weak Economy?

    August 28, 2012
    I just finished reading Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street. The book was written by Neil Barofsky, who was the Special Inspector General for TARP. Basically, he was the cop responsible for overseeing how TARP money was handed out. After two years ...
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  • The Effects of Divorce on Retirement

    August 20, 2012
    I spent last week at my in-laws’ cabin, a summer ritual before school starts. The weather was cool, so swimming in a lake was not on my children’s minds every day. We spent more time just hanging out, which in four-kid terms means eventually getting in each other’s way. The ...
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  • College’s Effect on Retirement

    August 13, 2012
    When the topic of college comes up at gatherings, and guests find out what I do for a living, the natural response is that I must be the one guy that is fully prepared for college. After all, I see how much college costs and I should know how to ...
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  • A Healthy Retirement Makes You Sweat

    August 6, 2012
    I have written often of the need to look at the cost of health care in retirement (often citing the Fidelity study that shows the average 65-year-old couple will need $240,000 in retirement for health care—not including long-term care). At the end of the day, however, the cost is the ...
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  • Where Will the Money Come From?

    July 30, 2012
    Last Thursday, reported on an Allianz study that showed only 14% of baby boomers’ parents believe they owe their children an inheritance. I don’t know if 14% is the right number or not, but I can attest to a change in thinking that I am running into more and ...
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  • The Changing Landscape of Long-Term Care Insurance

    July 23, 2012
    Last December, I wrote a blog about hedging against inflation by using the 10-pay option on long-term care insurance contracts. Long-term care insurance is a hedge in that you use current dollars (premiums) to pay for future costs (benefits paid). If you can front-load the premiums by paying the policy ...
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  • The RMD Approach to Retirement Spending

    July 16, 2012
    Accumulation is easy. Save money. Decumulation is tougher because now you need to pick a strategy and stick with it. Strategies abound: Spend your interest and dividends and never touch the principal (which is difficult in today’s low-interest-rate environment); follow the “4% rule” and index that for inflation; or annuitization ...
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