Money For the Rest of Us
Money For the Rest of Us
J. David Stein
The New Math of Retirement Spending and Investing
27 minutes Posted Jan 6, 2021 at 9:00 am.
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27:20
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Show notes

How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed.

Topics covered include:

  • How managed payout and income replacement funds compare to immediate annuities
  • Why Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout funds
  • How fixed annuities work
  • How retirees should combine annuities with multi-asset class portfolios to ensure a successful retirement
  • Why the 4% retirement spending rule is not appropriate for all investors all of the time.
  • Why inflation is the biggest determinant of how much retirees can spend
  • Why is there so much controversy over the current and future inflation rate


Thanks to Mint Mobile and Truebill for sponsoring the episode.

Show Note Links

Vanguard Throws in the Towel on Its Managed Payout Fund by Daren Fonda—Barron's

Generating Retirement Income Isn’t Easy, Even for Vanguard by Reshma Kapadia—Barron's

Today's Best Multi-Year Guaranteed Annuities (MYGAs)—ImmediateAnnuities.com

Opinion: The inventor of the ‘4% rule’ just changed it Brett Arends—MarketWatch

The Price of Tomorrow: Why Deflation is the Key to an Abundant Future by Jeff Booth

Alternate Inflation Charts—John Williams' Shadow Government Statistics

Americans Are Richer Than We Think by By Phil Gramm and John F. Early—The Wall Street Journal

For more information on this episode click here.