CNBC reports Stanford Center on Longevity take on best retirement strategy (depression, crying)
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Broad recommendations miss the needs of many so a little analysis is needed.
1. Take SS when you need it! For some it is at 62, some at FRA, some at 70.
2. Make your distributions (automatic if possible) meet your needs and tax situation.
3. Stay invested in about 50% equities (index or quality mutual) if possible.
These decisions may seem difficult as the results depend upon the future, but based upon current data is as simple as the above general guidelines.
I have been retired for some 7 years. In about 3 years, I will opt for my SS monies. The said will be set aside and invested for the future consideration.
The article makes it clear it is for middle income people who feel they have enough money to comfortably retire.
Yep. If you're worth many millions, the decision about when to collect Social Security is pretty much moot. If you don't have a retirement portfolio or much net worth, you work until you can't work. Again, it's moot. This is a strategy analysis for people who have funded their IRA/401(k).
Like always, I treat Social Security as my insurance against living so long that I run out of money. I'm planning that my Social Security check and IRA/401(k) required minimum distribution are pretty much all of my income stream. Depending on my circumstances, I might do some shifting to Roth IRA before I hit 70 as a tax avoidance and Medicare premium avoidance strategy. Right now, all I can do is max my Roth 401(k) with my new money.
Like the article suggests, I expect to bridge to age 70 with a slice of my accrued assets. I can do it now at age 59 1/2 or I can continue working well into my 60's. For now, all I can do is contingency plan for losing my job today and never working again.
I knew a number of people that never reached 65, much less 70.
I was downsized at age 59 at the end of a recession and wound taking a low pay crap job. Once I got the mortgage paid off, I retired. I never regretted it.
My view is that retirement is the reward for working so many years, enjoy it while you can. You never know when you will no longer be able to.
After analyzing 292 retirement strategies, the Stanford Institute on Longevity collaborating with the Society of Actuaries - concluded the best was: "Wait until you are 70 to take SS and create an automatic retirement income."
A typical 6th grader could probably further boil that down to: "Maximize your regular retirement income." But, I'll bet the 6th grader could come up with that answer much cheaper and faster.
The obvious doesn't because more profound because it's packaged as a high-priced study by purported experts.
This was on my smartphone news feed yesterday. No surprises here. This strategy is targeted at most of us.... the ones who don't have a defined benefit pension coming and who don't have a high enough net worth to replace most of our pre-retirement income.
Monthly or quarterly distributions of 401(k) & IRA RMDs at age 70 1/2. Use low cost index, balanced, and target date mutual funds.
They're suggesting either wait until 70 to retire, work part-time to cover living expenses (which may need to be dramatically slashed), or set aside a pile of cash to bridge yourself to age 70.
People who advocate working until 70, have a job where they sit in a chair all day.
I would say the need to delay retirement until age 70 or the need to work part time in retirement are NOT "winning" strategies. The winning strategy is to live within means and to take advantage of compounding by saving even a little beginning early in life. Supplementing social security with withdrawals from investments is not exactly a novel idea.
I think what we have here is another 20 something, crank out words for cheap, writer with nothing of value to say.
These articles are written by 35 year old's, with upper middle class origins, who have never done an honest days work in their lives. Google their names and resumes sometime.
These articles are written by 35 year old's, with upper middle class origins, who have never done an honest days work in their lives. Google their names and resumes sometime.
Not this one.
2013 Williams Graduate
Personal Finance Reporter
Business Insider
Greater New York City Area
Pitched original ideas, and researched and composed at least ten original articles a week for Business Insider's "Your Money" vertical.
Covered a variety of topics, such as managing your money, growing your wealth, the psychology of getting rich, and personal stories of people who have achieved impressive financial accomplishments.
Reporter
CNBC
Personal finance reporter for CNBC Make It, the largest and fastest-growing section of cnbc.com.
I write 10 to 15 original articles per week that target young professionals who want to be smarter about how they earn, save and spend their money.
My gut would be that the writer is 27 years old tops and upper class ...
Just the demographics you want writing articles on retirement.
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