Efficient Retirement Financial Strategies
Today’s retirees are making increasingly complex financial decisions. Gone are
the days when one could rely solely on government or corporate pensions. The freezing
or elimination of pension plans, combined with the rapid introduction of defined
contribution plans, has forced retirees to rely more and more on their own investments to
fund their retirement spending. Retirees are not only expected to fund a larger portion of
their retirement spending, but early retirement and increased longevity imply their assets
must support potentially longer retirements as well. To address this responsibility, a
retiree has either implicitly or explicitly adopted an investment strategy to govern his
investment decisions and a spending strategy to govern his spending decisions. A pair of
investment and spending strategies constitutes a retirement financial strategy.