What’s the greatest financial luxury that a retiree can have? All the money in the world? No. More money than Bill Gates? Not that either. In my view, the answer is much more attainable: Having more than enough money to meet your needs.
I know that sounds really simple, and in one sense it is. But let me tell you how it plays out. My column last week outlined several scenarios for determining how much money to withdraw from your portfolio when you’re retired. They were all based on the premise that you need all you can get without taking the risk of running out of money.
But if you have saved more than you need (or to put it another way, if you can live below your means), you should be able to tolerate a stream of cash flow that goes up and down with the waning and waxing of your investments. I call this a “flexible” withdrawal plan.
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