Monster Income… How Much Income Do I Need In Retirement?

Little monster and a dollar sign

Monster Income!

This is another one of the big questions related to retirement. How do you know what to save or how to invest if you don’t know what your income needs are?

It is a simple question on the surface, but to get the answer it can become complicated very fast. There are many resources available but that is part of the problem. With so much clutter and noise, it is hard to find something that provides a basic understanding of the problem at hand.

marlena_leeThanks to Marlena Lee of Dimensional Fund Advisors for producing this excellent video. It provides a clear and concise overview of determining how much income you need in retirement. Here is a little more information about Marlena. As a vice president on Dimensional’s Research team, Marlena conducts research in asset pricing and macroeconomics. She shares the results through published research and in presentations to institutions and financial advisors who work with Dimensional. Marlena is also a member of the Investment Policy Committee. Prior to joining Dimensional, Marlena gained experience explaining complex financial concepts as a teaching assistant for several professors, including Professor Eugene Fama. She has also worked as an economic consultant on antitrust litigation cases and as a research assistant at the Manhattan Institute of Policy Research.

Marlena earned her PhD in finance from the University of Chicago Booth School of Business. She also holds an MBA from the Booth School of Business and an MS in agricultural and resource economics and a BS in managerial economics from the University of California, Davis.

Here is a link to Marlena’s video. All you have to do is click on the link: https://youtu.be/6oQBSqRQSGk

If you are intrigued by Marlena’s video, you may want to read her more detailed paper on the subject. Retirement_Income_Equation

Planning for retirement is complicated. Hopefully, this video and paper will help you understand one of the basic questions, “How Much Income Do I Need In Retirement?”

Have any questions or need some help?

You can always contact me at my business email: gallen@prudentllc.com

Hope you find this information useful.

Gary Allen on Business – Sunday, December 14, 2014 – Podcast Now Available

Annuities and Lifetime Income Options in 401(k) Plans
Cheat In this program I spend time explaining some of my concerns with annuities in general and their application in 401(k) plans. There have been some recent regulatory changes that will make it easier for insurance companies to use so-called lifetime income options (annuities) inside of qualified retirement plans.

There are some significant potential problems with these new products that business owners and their employees should be aware of. As you would expect, they are going to be sold as a simple solution but they are anything but simple. I hope you enjoy the program.

Segment 1 – Basic annuity concerns
Segment 2 – My concerns for business owners with lifetime income options (fiduciary liability with a very long tail)
Segment 3 – My concerns for employees with lifetime income options
Segment 4 – A short segment introducing Tony Robbins and his new foray into the financial services world

Annuity

Gary Allen on Business

Gary Allen on Business