PFP2205. Gutters & Guardrails: Maximizing Retirement Income with Spending Flexibility

To submit a question or participate in polling, click the link above. Advisors and clients often focus on the 4% rule when discussing retirement income. Most of the times, however, using the 4% rule leaves you with more money at the end than when retirement started. Given the current market (low bond yields and high equity valuations), many are suggesting the 4% rule is no longer safe. On the other hand, research shows that retiree spending goes down as they age, and that most retirees will never draw down their retirement portfolio. In this session, we will look at strategies that will help your clients spend more money initially (during the go-go years of retirement) while ensuring they don’t run out of money in the process.

Learning Objectives:

• Identify the various factors that impact safe withdrawal rates.
• Recall strategies that help to increase the initial withdrawal rate.
• Recognize how to improve the sustainability of a retirement portfolio.
• Determine when it is necessary to adjust client spending (and when it is not necessary).
• Apply the dynamic spending strategies and communicate them with clients.