In Search of the "Best" Retirement Strategy

Klinger, William
January 2011
Journal of Financial Service Professionals;Jan2011, Vol. 65 Issue 1, p62
Academic Journal
Adopting a strategy for withdrawing assets from a retirement portfolio is one of the most important decisions facing retirees. This paper examines eight retirement strategies proposed by researchers and pundits by simulating and evaluating the strategies according to a common set of criteria. In order to address the important concern and criterion of the trade-off between total real retirement income and real legacy, the strategies are also simulated to show the effect of purchasing immediate annuities with different percentages of the retirement portfolio. An approach is presented to help guide a retiree or planner in selecting the "best" strategy for the retiree.


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