Making Your Nest Egg Last a Lifetime
نویسنده
چکیده
Media attention on retirement security generally focuses on the need to save enough to enjoy a comfortable retirement. However, accumulating a nest egg is no longer the only significant challenge – the other is managing one’s nest egg in retirement. In contrast to previous birth cohorts who often received a lifetime income from a defined benefit pension plan, in today’s 401(k) world retirees must choose how to convert their accumulated savings into a monthly paycheck. One straightforward solution to the drawdown challenge is an immediate annuity, which turns a lump sum of income into a lifelong payment stream. However, for various reasons, such annuities have not proven broadly popular. Therefore, this brief examines several alternatives. All such strategies involve a trade-off between maximizing consumption and minimizing the risk of running out of money. Calculating the optimal strategy is really hard – maybe impossible. But, despite the complexity of the problem, some strategies are clearly superior to others. This Issue in Brief is structured as follows. The first section evaluates three common “rule of thumb”
منابع مشابه
Should we stay or should we go?
With the potential benefit of positive movement in the housing market and now having two properties this may place you in a good position to increase your retirement nest egg if you choose to sell your family home when you downsize. Depending on your situation you may even be able to keep the family home as an investment. One of the biggest decisions for many retirees is whether to stay in the ...
متن کاملEffect of nest temperature on egg-brooding dynamics in Children's pythons.
Parental care meets several critical needs of developing offspring. In particular, egg brooding in pythons is an exceptional model for examining environmental influences on specific parental behaviors because brooding behaviors are dynamic yet simple and modulate embryonic temperature, respiration, and water balance. We used captive Children's pythons (Antaresia childreni) to assess their facul...
متن کاملNest predation and the evolution of egg appearance in passerine birds in Europe and North America
Question: Does nest predation influence egg colour appearance among North American and European passerine birds? Analyses of species that lay their eggs directly on the ground provide support for such a contention, but it is less obvious in shrub and canopy nesters. We hypothesized that if predators locate nests by egg colour, nest predation could select for eggs with a less conspicuous backgro...
متن کاملParental care of a cowbird host: caught between the costs of egg-removal and nest predation.
Avian brood parasites reduce host fitness through the addition of parasitic eggs and the removal of host eggs. Both parasitic egg-addition and host egg-removal may be important sources of selection on host behaviour, creating fitness trade-offs with selection imposed by nest predation. However, the relative costs hosts suffer from egg-addition and host egg-removal and the responses to these cos...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2009