The “Spend Safely in Retirement Strategy”–An Approach for Older Workers?
The Stanford Center on Longevity (SCL) and the Society of Actuaries (SOA) have joined forces to help address the dilemma faced by older workers dealing with the absence of a defined-benefit pension plan. Their recommendation is a fairly straightforward approach based on two key steps: (1) delaying the start of Social Security benefits as long as possible, especially for the primary wage earner for married couples; and (2) investing deferred compensation plan funds (example, IRAs and 401(k)s) s in commonly available, low-cost mutual funds.
MarketWatch’s Steve Vernon explains this plain-spoken strategy in detail in a post on www.marketwatch.com, covering the implementation steps and the advantages of following a relatively simplistic approach. Read his post here…