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Ways To Avoid Outliving Your Income

Sunday, February 16, 2014 - 2:38 AM
From USA Today
There are personal finance strategies to plan for the unknown, including the day of your death.
Read more

You have probably seen most of the strategies mentioned in the article. Here's a list of the ones described:

* single premium immediate annuity or an deferred income annuity
* identifying the best Social Security-claiming strategy
* choosing joint and survivor pension payout
* laddering a portfolio of inflation-adjusted securities
5
Ken TuminKen Tumin5,468 posts since
Nov 29, 2009
Rep Points: 125,029
1. Sunday, February 16, 2014 - 7:11 AM
I wonder how Mr. Powell characterize me? Frontal lobe issues? We saved, always spent less than our income and are out of the market completely but do spend what is there for what we want and need and give to others. Spending is over 70% what spurs the economy. But low interest rates aren't doing the trick. I think
that investors still do not trust Wall Street or the banks. How can you compete with mega computers that trades in a 1/1000 of a second to make a fraction of a penny of hundreds of thousand of shares of stocks? 

Is fear making you too conservative? - Robert Powell's Retirement Portfolio - MarketWatch 

I never have been much of a risk taker even in private life, once I went whitewater rafting or snowmobiling to the top of the highest hill, or going on a dune buggy flying through the air that was enough. same with parasailing. Once experienced I have no desire to do it again. Like new adventures but once has always been enough. Same with traveling once I have there I have no desire to go again. But still do enjoy sunsets on Lake Michigan. Same with the market. From 1995 to 1999 was enough. My income is from laddered IRA's and CD's. I guess you could call that an annuity but so far have not gotten into the CD's and RMD's start this year but still converting to Roth's. SS so far seems to be enough to live on. Everyone has to do what they think works for them. 
3
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
2. Sunday, February 16, 2014 - 7:32 AM
Good calculator for retirees:

I'm retired, how long will my savings last?

I'm retired, how long will my savings last? | Calculators by CalcXML
6
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
3. Sunday, February 16, 2014 - 9:06 AM
A good calculator but there is no way to calculate for the unknown. Many people in Michigan who live in the country heat with propane. They have seen the price of propane more than DOUBLE and we are on the way to the coldest winter in 36 years with lots of snow. Trucks many times cannot get to homes to bring  propane and there now is also  a shortage of  propane. How can you plan for $800 a month heating bills when it was $250 to $300 last year? Even with natural gas and the 13% increase my highest bill has been only $132. I will pay about $650 this year for heat, cooking, hot water and for the gas dryer these poor people pay more than that a month. 
When more than 1/2 of our fresh food is grown in California how could you forecast the drought there? What is that going to do to food prices? How are they going to prepare for the brownouts that they could have? Remember what Enron employees did to them in the 90's?
We have health insurance for us retirees that can pay 100% with Medicare and a supplement for the unknown health issues but so many things we cannot plan for.
5
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
4. Sunday, February 16, 2014 - 9:13 AM
Simple answer.  Save enough money to support yourself on your RMDs and social security. Problem solved and less math to do.  Key to higher unexpected bills:  Save enough money to cover them.  Simple answer:  SAVE ENOUGH MONEY!
5
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,992
5. Sunday, February 16, 2014 - 7:22 PM
"A good calculator but there is no way to calculate for the unknown."

The world may end tomorrow. May as well spend all your money then.
2
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
6. Monday, February 17, 2014 - 7:35 AM
The biggest concern is that we don't realize what we don't know. 
1
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
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