Paul Pent & Associates - Retirement Advice Blog

Financial Insight Blog

Four Misleading Pieces of Retirement Advice


U.S. News did an article recently, "Four Misleading Pieces of Retirement Advice." It's not that the article was right or wrong, it's that they ignored the best solutions altogether. Case in point, they talked about how seniors should be careful when withdrawing 4% of theri retirement each year to live on. They make the case that if your accounts are at risk you need to withdraw less when the market crashes and your accounts are depleted. Unfortunately they miss altogether that if one takes their money out of market risk altogether they could easily withdraw 4% a year and be guaranteed to never run out of money as long as they live.

We talked about this subject a little this week at the end of our radio show. Right now a few companies that I know of are offering a guaranteed roll-up rate of 7% (sometimes more) if the funds, once withdrawals begin, are taken out at a rate of between 4% and 6%. This kind of account works great for IRA's and other qualified funds that need to stay tax sheltered. As usual, give us a call for further details and to see how this can benefit you.

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