Weekly Roundup June 10 - 14, 2019

Anne Stanley

Among the best stories from Retirement Daily for June 10 - 14: How much money you'll need in retirement, planning for healthcare costs and tips for great summer travel deals.

A subscriber writes: "I am getting dozens of answers regarding how much I need to have in retirement to comfortably do so. I have $1.4 million and own my house outright in California. I want to retire in three years, which will be my 63rd birthday. What is a percentage I can be comfortable taking monthly at that time to not exhaust my principal before death?"

Answer: To answer your question, we sought the advice of two financial planners. Here's what they had to say:

Jim Koch, president of Koch Capital Management: First off, you need to determine your outflows, your expenses, during retirement, says Koch. "You need to determine what your household wants to spend in retirement and determine its feasibility," he says. Koch goes on to detail ways to determine your risk tolerance, and understand safe, sustainable withdrawal rate numbers.

Brian Gawthrop, a certified financial planner with Robinswood Financial: The short answer is: "It depends." And, no matter what withdrawal rate you choose he recommends "monitoring closely and frequently with a skilled adviser." Gawthrop add that the long answer is this: The general rule of thumb many advisers use is that you can take out 3% to 5% per year and not erode the principal. But, he says, "This rule of thumb is based on some underlying assumptions, though, and we all know what assumptions might do to you and me if you aren't aware of them," he says.

Read more in Ask Bob: How Much Money Will I Need in Retirement?

And in case you missed them, here are more great stories from Retirement Daily:

New Retirement Research

Here are some of the latest reports, surveys, and studies related to retirement, including research into pension funds, dental care, and how technology can help maintain health and quality of life.

How to Get the Best Deals on Summer Travel Adventures

We are officially in the summer travel season -- and the higher prices that go along with it. Here are some of the best tips Jeanette Pavini has found over the years to help you save so you can have a little R&R this summer.

New Investments and Products for Retirement

The following are new investments that those saving for or living in retirement might consider for their portfolios. This week: Exchange-traded notes linked to the Solactive MicroSectors US Big Banks Index.

Planning for Healthcare Costs in Retirement

Adviser and former physician Ken Waltzer breaks down healthcare costs and ways to spend less in retirement. He writes in his guest column this week: "When I meet with clients to discuss retirement planning, paying for healthcare is one of their biggest worries. No wonder: Healthcare expenses are the second or third largest retirement expense. By late retirement, healthcare costs can become the largest expense, eclipsing even housing. And this doesn't even consider long-term care expenses, which can take spending to an entirely new level."

Ask Bob: IRA Checking Accounts and Using PayPal for Donations

A reader asks about whether using PayPal could work for a qualified charitable distribution.

Where to Retire: Best College Towns

Does a charming town with sports, recreation, cultural opportunities, lively youthful energy, and great medical care sound like a good place to retire? Read on.

Briefing: Latest Retirement News

Here's the latest from the world of retirement-related news: Pros and cons of holding annuities in 401(k)s, retirement confidence, and states with the highest and lowest retirement costs.


Weekly Roundup