Income

Weekend Reading: Managing Taxes in Retirement: Income Thresholds versus Incremental Average Tax Rates
Here, past podcast guest, Wade Pfau, highlights how to strategize the withdrawal order between your three tax buckets (taxable, tax-deferred, tax-exempt) by utilizing two different distribution methods: The adjusted gross income (AGI) threshold strategy versus the incremental average tax rate method.

Weekend Reading: The RISA Framework: A Systematized Approach to Personalizing Retirement Income Strategies for Clients
In this article, two of my favorite retirement researchers, past podcast guest Wade Pfau and Alex Murguía, highlight what is known as the RISA (Retirement Income Style Awareness) Framework. This profile is created by pinpointing the two strongest factors that determine your overall income preference style.

Weekend Reading: How to Plan Retirement Income for a Constrained Investor
To determine if you are a constrained investor, you would calculate the ratio of your minimum annual living expenses to the value of your net investment assets. If the outcome is more than three percent, you could be classified in the constrained category.

Weekend Reading: Why Critics of Bucketing Strategies are Wrong
Bucket strategies are immensely popular in the realm of retirement planning strategies, but as with any financial approach, they have their naysayers too.

Weekend Reading: Behavioral Biases and the Hierarchy of Retirement Needs
The “bucketing” manner in which you might account for income and assets, as well as the hierarchy it develops, can cause you to save more money for retirement than you actually need.

Weekend Reading: Consider the Source – How to Cut Your Tax Bill
A primary part of navigating the complicated process of tax planning includes not only considering the source of your income, but also understanding how it can affect the dues you owe Uncle Sam.

Weekend Reading: An Actuarial Process for Better Decisions in Retirement
This article hones in on utilizing actuarial methodology when it comes to determining how much you can afford to spend in retirement – specifically, through the floor-and-upside approach.

Weekend Reading: Are Longevity Assumptions Obsolete?
The odds are in your favor when it comes to living longer; however, that also means creating a retirement income stream you don’t outlive is more imperative than ever.

Weekend Reading: Adjusting Monte Carlo Success Thresholds by Tolerance for Spending Volatility
If you had a crystal ball, retirement planning would be much less complicated. Unfortunately, no such thing exists, but there is one thing you can do, which is stress test your portfolio.

Weekend Reading: New Tax Rule #1: Say Good-Bye to Tax Deferral
One of the most widely-known financial rules-of-thumb is to defer taxes, but what continues to become more evident is that doing so could likely cost you more in the future.

Weekend Reading: Retiring in Uncertain Times? Try the Bucket Strategy!
You need your nest egg to last the rest of your life, and one way to help make that happen is via an approach called the “bucket strategy”. Here, your savings are divided into three areas – or buckets – and this article explains the purpose of each one.

Weekend Reading: The Good News for Upcoming Retirees
Today’s retirees may be unable to match the portfolio-withdrawal rates of those before them, but their amount in assets appears much larger.