How much money can you spend in your retirement

Most Professional Financial Advisors use a Rule of Thumb called  "The 4% Rule". Rules help clients understand what they  should or should not do. This rule states that if you  want a high probability that your  retirement assets will last as long as you live you should  remove or spend no more than 4% of your assets per year.  This rule applies  to self managed money accounts and  does not apply to Defined Benefits assets.  Recently we have lived through 5 or more years with Low interest rate earnings, High market volatility and we are actually living longer than ever in history. A number of  economists and planners have asked and studied this question. "Does the 4% Rule still apply in todays world?" What a great question! Many financial Advisors now believe that it no longer provides adequate protect of your income for life. They believe that you should limit withdrawals to only 3 % or so if you  want your self managed assets to last for your lifetime.

A recent study that appeared in the Journal of Financial  Planning  has found that up to 18% of people utilizing the 4% Rule will in fact run out of money before they die. That is a terrifying study result! That means that many people will have  to work long and or spend less in their retirement years.

What should a retired boomer, retiree or pre-retiree do.  They can  decide to  work longer and spend less. Those are a couple of good steps. Clearly they should also convert at least some portion of their assets into a Lifetime guaranteed income stream. These products  are only available  from Licensed Life insurance agents with the products  and knowledge needed to meet  these needs.  This is what I have  focused my business on for  over 8 years. Some of  these products can Guarantee a withdrawal rate for  life of 5% or more for your  entire lifetime.  Now compare that to  the 4% Rule or maybe 3-3.5% withdrawal rate with self managed assets.  These products can guarantee you an income 25-66% more than you  can  get from any self managed assets with the same Asset value. Thes products do this with Zero Market Risk. They delivered during 2008-2009 and they  can do the same thing during the next  recession whenever the out of control goverment excess spending creates the next Recession. These products have a role to play in almost everyones retirement strategy.

Hope to Receive A State Pension Read This

Just read an aticle talking about State funding of their pension Liabilities. 16 state are seriously underfunded. They have reserves in their pension funds covering only 75% of their obligations. f That is down even more than the 77 % of their pension obligations when evaluated just two years ago. Looking for a state funded pension. What does this shortfall mean?

There are only four possible alternatives.
First,These states can increase taxes significantly on all taxpayers to correct this deficiency.
Second, the state can try and reduce the value of the pensions for current or future retirees.
Third, states can combine one and two.
or Last, they can stick their heads in the sand and pray it will resolve itself.

What do you think will happen?.
I think these states will try a combination of options one and two. They may also increase the retirement age.

There is a message here for state employees. You need to be looking for ways to cover a possible pension shortfall with your own savings or retirement assets. We can help! We specialize in Safe Money Financial Alternatives.