Retirement Spending
It seems I hear advice from my FA about allocations and positioning regardless of my age, but when I ask about reducing my exposure to market variations as I get older, it is crickets. How do retirees in their 70s and approaching 80s start spending intelligently. It has been my practice to take gains in up markets and put them in my money market. But I always wish I had taken more when the markets decline.
Terry Says
For sure, hindsight is 20/20! And modeling future growth of a portfolio to provide income is a multi-dimensional task. The best way is to choose an advisor who uses “monte carlo” modeling programs. This has nothing to do with gambling. It is a computerized scenario of modeling historic returns and creating probabilities that an investment portfolio can maintain a withdrawal strategy over many years.
Contact T. Rowe Price at 800-638-5660 and talk to them about Monte Carlo modeling. Just give them your age, asset total, desired income, your predicted life expectancy (go to www.Livingto100.com) to get a good idea!!) and they will help you create a portfolio designed with a high probability of generating the cash you need to withdraw over your lifetime.
