Sustainable Retirement Spending For a Couple

Pye, Gordon B.
July 2000
Journal of Financial Planning;Jul2000, Vol. 13 Issue 7, p84
Academic Journal
Discusses the process of developing spending plans for retired couples and surviving spouses in the United States based on Social Security benefits and investments. Ways to increase a couple's retirement spending; How to evaluate the amount a couple can spend in retirement; Features of the Monte Carlo approach. INSET: Allowance for Separate Investments.


Related Articles

  • Determining Retirement Readiness. Waltzer, Ken // Journal of Financial Planning;Dec2012, Vol. 25 Issue 12, p32 

    The article discusses wealth management and retirement planning, with a focus on how financial planners can determine if a client is prepared for retirement. Topics include retirement earnings like pensions and Social Security, how financial planning software programs provide Monte Carlo...

  • The impact of asset allocation, savings, and retirement horizons, savings rates, and social security income in retirement planning: A Monte Carlo analysis. Ervin, Danny M.; Faulk, Gregory K.; Smolira, Joseph C. // Financial Services Review;Winter2009, Vol. 18 Issue 4, p313 

    This study uses Monte Carlo simulation to evaluate the ability of various deposit percentages and asset allocation weights to support withdrawals in retirement that permit smoothed income over the life of an individual. The results indicate that, in general, individuals need to deposit at least...

  • Rates of Return Used in Retirement Planning Software. Turner, John A. // Benefits Quarterly;2012 Fourth Quarter, Vol. 28 Issue 4, p33 

    There appears to be a bias in some retirement planning programs to use rates of return that are too high. For example, some programs do not take into account fees, and many programs do not take into account the evidence from behavioral economics that individual investors tend to do worse than...

  • MAROTTA ON MONEY. Marotta, David John // Hudson Valley Business Journal;6/28/2010, Vol. 21 Issue 26, p8 

    In this article, the author discusses the importance of potential projections in retirement planning in the U.S. He mentions that retirement software presents Monte Carlo analysis, wherein achieving 80 percent or more of investment outcomes would mean staying solvent until death. He adds that...

  • Monte Carlo Simulation: Smart Bet for Baby Boomers' Retirement Plans. Levine, Evan M. // CPA Journal;Sep2005, Vol. 75 Issue 9, p12 

    Discusses the use of Monte Carlo simulation method in retirement planning in the U.S. Adjustment of retirement income planning for annual variations in projected average returns using the method; Rate of average return for the Standard & Poor's 500 index from 1968 to 1998; Disadvantage of the...

  • 'OPPORTUNITY COSTS' OF AN OVERLY-CONSERVATIVE APPROACH.  // Advisor Today;Jan2001, Vol. 96 Issue 1, p52 

    Describes ways to chart two opportunity costs concerning the insurance and financial industry in the United States. Income opportunity costs; Assessment of a retirement package; Assumptions with regard to legacy opportunity costs; Factors that need to be considered when using the Monte Carlo...

  • Sustainable Retirement Withdrawals. Tezel, Ahmet // Journal of Financial Planning;Jul2004, Vol. 17 Issue 7, p52 

    • A typical approach to sustainability is to estimate the odds of running out of money (the probabilities of failure or shortfall) after assuming an initial withdrawal rate that remains constant throughout the payout period, Simulation (Monte Carlo simulation or bootstrapping) and...

  • Using a Simplified Deterministic Model to Estimate Retirement Income Sustainability. Kasten, Gregory W. // Journal of Financial Planning;Jul2013, Vol. 26 Issue 7, p56 

    The article describes a simplified, deterministic approach to estimating the sustainability of retirement withdrawal rates. The author is motivated by the fact that Monte Carlo probability analysis used in much financial-planning software is highly sensitive to minor variations in standard...

  • Standby Reverse Mortgages: A Risk Management Tool for Retirement Distributions. Salter, John; Pfeiffer, Shaun; Evensky, Harold // Journal of Financial Planning;Aug2012, p40 

    The article discusses the use of the Home Equity Conversion Mortgage (HECM) Saver, a reverse mortgage loan, as a risk management tool in retirement distributions. The authors argue that the HCM Saver contains features which will make it attractive to borrowers, noting that it is a...


Read the Article


Sign out of this library

Other Topics