A recently released study by the American Association of Retired Persons (AARP) cited that one of the highest concerns associated with getting older was the lack of money required to support oneself during retirement.
For the past twenty years we have had thousands of financial experts trying to work out how much a retiree could safely spend each year to ensure that they don’t run out of money. Yet, while the fear of a lack of money remains a major obstacle to retirement planning, most people state that they have no idea what their retirement needs might be, and confess that they have very little knowledge about the entire subject.
Great news! The results are in; we now have a much better grasp of all the risks involved.
This is what a sensible strategy may look like though the problem here is that for many of us sensible just won’t cut it. Here’s what you do not want to do; reducing your portfolio after retirement is a treacherous mistake made by too many retirees – after all, none of us know how long we are going to live.
Taking this uncertainty into account most experts will typically suggest one of these two solutions....