Financial math and actuarial science prove this is a solid myth. Unless, of course, your retirement financial plan is based on Hope and Luck. Which, I must admit, sometimes works. For myself and my clients I prefer more certainty.
A recent whitepaper by financial behemoth BlackRock* indirectly affirms the way Duell Wealth Preservation builds retirement financial plans for our clients. They emphasize the essential challenge of shifting from the Accumulation Phase to the Distribution phase. They detail the essential task of optimizing Social Security. They demonstrate the importance of maintaining a Growth allocation. Finally, they prove the power of guaranteed lifetime income. And just with these three elementary planning tactics (out of a lot of others) they conclude one can "potentially generate more retirement income and decrease risk:
1. Adding guaranteed lifetime income
combined with a more aggressive asset
allocation generates 29% more annual
spending ability from one’s retirement
savings (excluding Social Security) and
reduces downside risk by 33%.
2. On top of that, delaying retirement and
claiming Social Security benefits from
65 to 67 boosts total annual spending
another 16% and reduces downside risk
by an additional 15%.
3. The increased spending generated by
these strategies extends well beyond the
average life span, providing a significantly
higher spending floor into a retiree’s 90s
and beyond.
*MKTGM0823U/S-3050437-6/8
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