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Income in Retirement: Common Investment Strategies

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Abstract:: Several important trends have drawn more attention to retirement issues. Perhaps most visible is the sheer size of the baby boom generation-the more than 78 million Americans born from 1946 through 1964-and its inexorable entry into retirement. Americans today are living longer and healthier lives, and they are shouldering more responsibility for retirement income planning, given employersı migration from defined benefit plans toward defined contribution plans. As more retirees receive lump-sum retirement benefits instead of lifetime annuities, they face the challenge of using these assets to generate reliable income for life while retaining a cushion for unanticipated expenses. We review some common approaches, including income investing, total-return-based spending, and the use of insurance-based products such as income annuities. Investors should keep in mind some important principles as they assess the trade-offs associated with each approach.

DETAILS: Sponsored by: Vanguard; Released: April 28, 2009; Length: 12 pages; Format: PDF (247 kb); Email this abstract; These white papers are not created by the CFO.com editorial staff. In order to view these papers, you must register with CFO.com and agree to share your contact information with related product/service companies.

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