Should you Delay Collecting your Social Security Benefits?
Recently, I have received a few emails on my recent post (read it here) that I advised, in considering whether to buy a commercial income annuity, one should first delay collecting their social security benefits until age 70. These emailers believe this is the wrong advice for collecting social security. One of their concerns is […]
Why Did We Sell Our Home?
In my last post I mentioned that my wife and I recently sold our primary residence. This action would appear to be in direct conflict to the statement I made in my last post concerning real estate. I stated that real estate is at the best value it has been in over a decade and […]
Replenishing the First Bucket
In a recent post I discussed the importance of setting up a fixed income ladder as your first bucket of the Buckets Strategy. As a follow up to that concept, I would like to introduce another skill that a retiree managing his own portfolio for income should know. That is when you should sell your […]
A Rules-Based Approach to Retirement Income Withdrawal
The best approach to have an initial retirement income withdrawal rate above the recommended 4% Safe Withdrawal Rate (SWR) (assuming you are willing to periodically adjust your withdrawals when the markets warrant it) is detailed in Ben Stein’s and Phil DeMuth’s 2005 book, Yes, You Can Still Retire Comfortably!: The Baby-Boom Retirement Crisis and How […]
Increasing the Safe Withdrawal Rate, Part III
The third general approach to increasing your Safe Withdrawal Rate (SWR) above the recommended 4% is pretty straight forward. It requires that you be flexible in your spending from year to year. In this approach you increase your withdrawal rate when the financial markets are doing well and you reduce your withdrawal rate when the […]
Can I Violate the 4% Rule?
In many of my past posts I have mentioned “the 4% rule.” The 4% rule is a reference to the recommended Safe Withdrawal Rate (SWR) for withdrawing retirement income from one’s financial portfolio. If you are not familiar with the 4% rule, you should read my previous post where I explain the concept. In this […]
The Buckets Strategy
My last post discussed why it is a good idea for most retirees or near-retirees to set up an income ladder to fund the first years of retirement. However, this income ladder is only the first step in an overall retirement income withdrawal strategy. Today I will discuss one particular strategy that is fast becoming […]
How it is Possible to have $100,000 in income and Pay $0 Federal Income Taxes
It may not seem feasible for a retiree to have $100,000 in spendable income and pay zero federal income taxes, but at least for tax year 2012 it is possible. It requires no special tax shelters and just takes advantage of a few ordinary tax laws. In this post I will provide a scenario that […]
Other Retirement Income
Many baby boomers nearing retirement today did not have a disciplined savings plan starting at an early age. This is why many financial advisors are recommending that people work part time in retirement to supplement their other retirement income. If you find part time work that you enjoy, then continuing to work a few hours […]
How Much is Your Home Really Costing You?
I discussed in my last post, “The First Rule of Real Estate Investing,” that your personal residence is not an investment. Your home should be considered a consumer item just like your car, your washer & dryer, or anything else you buy for personal use. The reason I state this is because of all the […]
