Avoid going broke in retirement
Life expectancies have been rising in modern times. While this is generally a wonderful thing, it can be problematic when doing retirement planning: You may worry about running out of money after you retire. Relax; there are ways to proactively deal with this fear.
Several academic studies address strategies for retirement planning. One recommends that you add more of a stock component to your portfolio after retirement, contrary to the conventional approach. Another suggests you could focus on saving steadily, rather than concentrating on how much money you should accumulate. Yet another study involves a dynamic approach -- adjusting up or down the rate at which you should withdraw money from your portfolio every year in retirement.
Buying an annuity is a tried-and-tested approach that enables you to count on a regular payment for as long as you live. And, of course, adequately budgeting for spending is a practical exercise that will help you prepare for retirement.
Want to avoid running out of money in retirement? Read on to see what the academics and financial industry experts say.