Financial Well-being

Most commonly used retirement income planning strategies use actual expences , which I believe is more practical and includes one's spending habits and chosen life style. One of the most popular strategy uses 55/45 stock/bond conservative  retirement portfolio equal to 22 times  of desired initial yearly  needed expences (after accounting social security benefits). For example, say someone retires at age 67 and starts collection 50K social security benefit as joint household. With fully paid house, say household expences are 60K per year. So household needs remaining 10K from retirement portfolio to meet all expenses. Using above rule of 22, one just needs 220K (22*10K) portfolio to provide needed retirement income for rest of retirement years. Now, let's visit other scenario where household wants to retire earlier , say by age 62. Social Security benefits are reduced (25%) to around 40K per year in that case. Now household needs retirement portfolio to provide remaining ...

https://finance.yahoo.com/news/way-convert-401-k-pension-223434278.html 2019 Secure Act makes it very easy (aka safe harbor) for 401(k) providers to offer expensive  annuity contracts within 401(k) plan. So, more and more 401(k) providers are likely to start capitalizing (collecting origination fee/commission  from insurance companies) such annuity insurance product offerings. However, as savvy investor, we should keep an eye on the hefty expenses of annuity products and choose our options wisely. For example, one cost-effective  option to increase guaranteed income is to postpone  taking social security benefits and, as a result, collect additional annuity income  through increased social security benefits itself. Using such simple approach, one can easily avoid  2-3% annuity related expenses every year. Above kind of annuity  offering from 401(k) plans is expected to provide no remaining legacy value at death , while the Safe Withdrawal Rate  ap...