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In 2021 and beyond, retirees will need better income withdrawal and Required Minimum Distribution (RMD) strategies to survive a 25-30+ retirement. Why? The Problems: The traditional 60/40 portfolio (60% stocks and 40% bonds) and the "4% Rule" can no longer be counted on for not outliving your money in retirement. You will learn precisely why the author and so many others believe this as you read more of this book description. Solution: The use of BUFFER ANNUITIES can radically improve the probability of retirement success of both the 60/40 portfolio and the suspect 4% rule. BUFFER ANNUITIES are the author's name for a little-known tiny subset of fixed annuities and are a vital ingredient of this simple IRA withdrawal strategy. During 2019 and 2020, JP Morgan, Bank of America, and Barron's declared that the 60/40 portfolio should NOT be relied upon going forward. So what is Wall Street's current collective advice for retirees? Buy more stocks instead of bonds. But most retirees do not want more stock market risk. They don't want a repeat of 2008. What about having a 60% (or more) allocation for stocks? Is this the right time for owning a higher percentage of equities if you are already in or near retirement? Yale economics professor and Nobel-prize winner (2013) Robert Shiller's CAPE ratio is a well-known indicator of future stock returns? CAPE stands for the Cyclically Adjusted Price to Earnings ratio. The higher the CAPE ratio, the lower the expected returns are likely to be over the next decade. As of August 2021, the CAPE ratio was 38. That is 93% above the modern-era market average of 19.6. A CAPE in the high 30s could mean stocks should only provide average returns of less than 5% over the next ten years. And mutual fund giant, Vanguard agrees that the returns over the next decade will be NOTHING like the last. If the 60/40 portfolio cannot be relied upon as a safe way to invest money, what about the 4% Rule? The "4% Rule" says you can only take out 4% of your savings each year, adjust it for inflation each year, and you have a 90% chance of your savings lasting 30 years. If you have $1,000,000, your 1st year's "safe" withdrawal is $40,000. It doesn't sound like a million bucks will provide for a millionaire's lifestyle. We just saw how stocks might be riskier than usual. What about bonds? This book is a must-read if you, too, are wary of bonds with their meager current interest rates. BUFFERS can easily provide 4%, 5%, 6% or much higher average returns - with none of the risks inherent with bonds (credit risk, interest rate risk, inflation risk). Dr. Wade Pfau, CFA, told Forbes in 2015: "bonds don't belong in a retirement portfolio." And that was when interest rates were two times higher than today! He also said: "with the current low-interest rates of virtually all bonds and the credit risks of all non-US Treasuries plus interest rate risk for all bonds - bonds should play no more than a minor role in a retirement portfolio." He still believes and teaches that to financial advisors across the country today. Do you dislike paying fees for bond mutual funds or ETFs or to a financial advisor? If so, BUFFERS have no mandatory fees or expenses. Zero costs. But most importantly of all, if you are looking for an almost fool-proof, 3-step income withdrawal or RMD system, this book is a must-read. Like any fixed annuity, BUFFER ANNUITIES are considered safe investments and a near-perfect bond alternative that will likely outperform bonds (and stocks as well, if Dr. Shiller and Vanguard are correct). The bottom line. This book teaches a proven, common-sense withdrawal strategy for improving the likelihood that you will never run out of retirement money. And do so without the risks and fees associated with bond funds and ETFs.
