24 May 2013

Investing and Withdrawal Strategies During Retirement: The “Retire Well” Bucket Approach

Posted In: Risk Management

Retirees across the globe face the same key challenge: how to save enough of their income — and build up the value of their investment portfolio — so that they can retire comfortably one day. Ask any financial advisor what their older clients fear most and the likely answer will be: “Running out of money before they die.” With people everywhere living longer, the proverbial nest egg has to last a lot longer. Now, more than ever, a happy retirement depends on meticulous financial planning.

Christopher Tan, chief executive and co-founder of Providend, a fee-only financial advisor based in Singapore, told delegates at the 66th CFA Institute Annual Conference that in the wake of the global financial crisis of 2008, what retirees want most out of their retirement plan is assurance of retirement income.

“ROI is no longer return on investment,” said Tan. “It’s reliability of income.”

Tags: financial models, Retirement, volatility

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About the Author(s)

Lauren Foster

Lauren Foster was a content director on the professional learning team at CFA Institute and host of the Take 15 Podcast. She is the former managing editor of Enterprising Investor and co-lead of CFA Institute’s Women in Investment Management initiative. Lauren spent nearly a decade on staff at the Financial Times as a reporter and editor based in the New York bureau, followed by freelance writing for Barron’s and the FT. Lauren holds a BA in political science from the University of Cape Town, and an MS in journalism from Columbia University.