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