Opinion: This one “investment” move can give you lifetime yearly income in retirement
May 7, 2019 by Michael Edesess
The investment business is full of theories and recommendations about how to accumulate wealth. But the field has very little to say about the best ways to decumulate, or spend down wealth.
This is an astonishing oversight, considering that the period over which wealth decumulation occurs is often as long as that of accumulation. If the turning point between accumulation and decumulation is 65 years of age, then an investor needs to plan for a potential 30 years or more of decumulation — and that planning needs to begin before age 65.
In contrast, the period during which substantial assets are accumulated typically stretches over 30 or 35 years, starting around age 30 or 35.
The limited attention to formulating a theory of decumulation is all the more surprising, given that, with the retirement of baby-boomers, it is surely the foremost concern of more people than ever before. And it is a subject to which much more meaningful and scientific study can be applied than to wealth accumulation.
Click HERE to read the full story via Market Watch.
