Decumulation Planning

You want a retirement income strategy that will last your lifetime, but what’s the best method of achieving that?

You have numerous options for creating the right income strategy for you, but if you’re simply taking withdrawals from your investment portfolio, you don’t have a strategy.

Where does your hesitancy to spend come from? Is it driven by need or by emotions of your past that are still holding you back from a bigger future?

What's your ideal withdrawal rate in retirement? Many experts agree with the four percent rule, while some say higher or lower. On a recent episode of The Ramsey Show, however, Dave Ramsey advocated for an eight percent withdrawal rate in a 100 percent stock portfolio.

You may find – like many of the families we meet with – that the distribution phase of retirement is often the most challenging. However, it can be greatly simplified by focusing on a handful of key risks.

Figuring out how much money you need for retirement can feel daunting. Here, past podcast guest David Blanchett explores a study conducted by The Alliance for Lifetime Income, which reveals changing attitudes and behaviors toward retirement security.

If you’re like many successful investors or the “millionaire next door”, you’re hardwired to save instead of spend. Reframing your mindset won’t be automatic, but learning to embrace spending your money on what matters most to you is priceless.

he manner in which you spend throughout retirement isn’t static, nor is it always consistent with inflation. As past podcast guest, David Blanchett, has found, it’s much more complex than that.

The transition from accumulation to decumulation mode can be one of the biggest challenges for retirees. In addition to requiring a mindset shift, it also presents unique obstacles that should be considered as part of your retirement planning process.

Despite the effects inflation and volatility can have on retiree income, new research through Morningstar suggests a “safe starting point” withdrawal rate for new retirees in 2023 is 3.8 percent, up from 3.3 percent a year ago.

Between the depletion of pensions, surging inflation and extended longevity, it might feel more complicated than ever before to know how to responsibly spend your savings, not to mention extend your income to potential decades down the road.

The decumulation phase of retirement can be one of the most challenging chapters to navigate. After decades of working, saving and accumulating, it can feel foreign to finally allow yourself to enjoy the fruits of your labor.