
How Much Can I Spend in Retirement?
A Guide to Investment-Based Retirement Income Strategies
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Narrated by:
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Virtual Voice
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By:
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Wade Pfau

This title uses virtual voice narration
About this listen
Deciding how much to spend from your investment portfolio in retirement is an important complicated task. This book guides you through the process of determining a reasonable spending rate that will strike the balance between enjoying your early retirement years while preserving enough to be comfortable later in retirement.
How much can you spend in retirement? Naturally, this is an essential question for those approaching this important life transition. If you wish to retire one day, you are increasingly responsible for figuring out how to save during your working years and convert your savings into sustainable income for an ever-lengthening number of retirement years. The nature of risk also changes in retirement, as the lifestyle of retirees become more vulnerable to the impacts of market volatility, unknown longevity, and spending shocks. Retirees have one opportunity to build a successful plan. It is not an easy task, but it is manageable and I will explain how to do it.
I walk you through the findings of a large body of financial planning research regarding sustainable spending from investment portfolios in the face of a variety of retirement risks. That body of research tends to begin with the 4 percent rule of thumb for retirement spending. I explain how and why it was developed, what it means, and when it may or may not be appropriate for you.
I have reservations about the 4 percent rule. It may be too aggressive for current retirees for reasons including increasing longevity, historically low interest rates, high stock market valuations, the impact of the international experience with the 4 percent rule, the need to maintain a rather aggressive asset allocation, and because the 4 percent rule assumes that investors do not pay any fees or otherwise underperform the markets.
Other factors suggest that sustainable spending may be higher. Reasons include that actual retirees may tend to reduce their spending with age, that they build more diversified portfolios than used in the basic research studies, that real-world retirees may be willing to adjust spending for realized portfolio performance, and that some retirees may have the capacity and tolerance to accept higher portfolio failure probabilities because they have other sources of reliable income from outside their portfolios.
Other matters you will learn about is how to analyze a variety of variable spending strategies and how to create a bucketing strategy that uses bonds to support short-term spending needs and uses stocks and other growth assets to support longer-term spending goals.
Retirees need to weigh the consequences between spending too little and spending too much—that is, being too frugal or running out of assets. This book is about implementing what I call the “probability-based” school of thought for retirement planning. It is especially relevant for people who plan to fund their retirements using an investment portfolio and those who are hesitant about using annuities or other insurance products. For those considering annuities, I suggest my book, Safety-First Retirement Planning, which is also in The Retirement Researcher’s Guide Series. For now, we have plenty to discuss about investing for retirement.
How did I come to write this book? After completing my Ph.D. in Economics from Princeton University with a dissertation about Social Security reform, I become an economics professor who studied the pension systems in different countries. Eventually I gravitated toward individual retirement planning and now work with unique job title of "Professor of Retirement Income" and as director of the Retirement Income Certified Professional® designation for financial advisors. This requires me to be agnostic and to search for the best from different retirement income styles.
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Overall
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Even though half of all Americans put money aside for retirement, it isn't until they reach their 60s that many realize that they haven't saved enough. With The Five Years Before You Retire, you'll hone in on what you need to do in the next five years to maximize your current savings and create a realistic plan for your future. This book guides you through each financial, medical, and familial decision, from taking advantage of the employer match your company offers for your 401(k) program to enrolling in Medicare to discussing housing options with your family.
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Very basic information
- By KC on 01-02-17
By: Emily Guy Birken
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The Soul of Wealth
- 50 Reflections on Money and Meaning
- By: Daniel Crosby
- Narrated by: Laurel Lefkow
- Length: 8 hrs and 27 mins
- Unabridged
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In The Soul of Wealth, Daniel presents 50 short essays which explore what wealth really is and provides practical suggestions for how to change your thinking and your actions in small, powerful ways, for a wealthier life.
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Filled with bite-sized, digestible insights
- By Anonymous User on 01-05-25
By: Daniel Crosby
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Retirement Money Secrets
- A Financial Insider's Guide to Income Independence
- By: Steven R. Selengut
- Narrated by: Matthew Spaur
- Length: 5 hrs and 16 mins
- Unabridged
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Produce enough income to retire and make market volatility your very best friend. Steve Selengut, a 44-year investment professional, teaches you a simple yet little-known system for investing in the stock market that shouldn't be a secret (but is). It delivers reliable income without selling your hard-earned investments to pay the bills. Better yet, it works whether the stock market is going up or down.
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Waste of my money
- By Akutz on 09-08-24
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The New Retirement Savings Time Bomb
- How to Take Financial Control, Avoid Unnecessary Taxes, and Combat the Latest Threats to Your Retirement Savings
- By: Ed Slott
- Narrated by: Dan Woren, Ed Slott
- Length: 14 hrs and 14 mins
- Unabridged
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If you're like most Americans, your most valuable asset is your retirement fund. We diligently save money for years, yet most of us don't know how to avoid the costly mistakes that cause a good chunk of those savings to be lost to needless and excessive taxation. Now, in the midst of a financial crisis, there is more need than ever to protect your assets. The Retirement Savings Time Bomb, by renowned tax advisor Ed Slott, shows you in clear-cut layman's terms how to take control over your retirement savings plan.
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Very technical, good reference
- By chad johnson on 07-08-21
By: Ed Slott
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The Only Retirement Planning Book You'll Ever Need
- Your Guide to a Stress-Free Retirement: Achieve Financial Freedom, Make Your Money Last, & Savor Life After Work
- By: Garrett Monroe
- Narrated by: N.W. Edwards
- Length: 4 hrs and 20 mins
- Unabridged
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Unlock a stress-free retirement and achieve the financial freedom you deserve with this ultimate guide! Imagine possessing a comprehensive resource that breaks down retirement planning into simple, actionable steps, turning complex financial decisions into opportunities for a secure future. Whether you’re starting from scratch, looking to enhance your current retirement plan, or are near retirement without much savings, this book will guide you through every stage of the process and ensure you're fully prepared for the next chapter of your life.
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Great information in this audiobook
- By Mercedes Pan on 01-30-25
By: Garrett Monroe
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Look Before You LIRP
- Why All Life Insurance Retirement Plans Are Not Created Equal, and How to Find the Right One for You
- By: David McKnight
- Narrated by: Jeremy Vore
- Length: 2 hrs and 37 mins
- Unabridged
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In this follow-up book, Look Before Your LIRP, he makes the case that, while a variety of LIRPs may help get you to the 0% tax bracket, not all will do so with the same efficiency or effectiveness. In fact, finding the right LIRP for your tax-free retirement plan can be just like finding the ideal spouse. Just as you likely had a list of qualities you were looking for in a life-long partner, you should have certain attributes and provisions in mind when looking for the ideal LIRP.
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MUST Consider as an option!!!
- By Carl M. on 11-06-16
By: David McKnight
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Your Money or Your Life
- 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Fully Revised and Updated for 2018
- By: Vicki Robin, Joe Dominguez, Mr. Money Mustache - foreword
- Narrated by: Vicki Robin
- Length: 11 hrs and 21 mins
- Unabridged
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For more than 25 years, Your Money or Your Life has been considered the go-to book for taking back your life by changing your relationship with money. Hundreds of thousands of people have followed this nine-step program, learning to live more deliberately and meaningfully with Vicki Robin’s guidance. This fully revised and updated edition with a foreword by Mr. Money Mustache is the ultimate makeover of this best-selling classic, ensuring that its time-tested wisdom applies to people of all ages.
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Not A Book About Finances
- By Tristan on 09-24-18
By: Vicki Robin, and others
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Die with Zero
- Getting All You Can from Your Money and Your Life
- By: Bill Perkins
- Narrated by: Bill Perkins
- Length: 5 hrs and 11 mins
- Unabridged
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Die with Zero presents a startling new and provocative philosophy as well as practical guide on how to get the most out of your money—and out of your life. It's intended for those who place lifelong memorable experiences far ahead of simply making and accumulating money for one's so-called Golden Years. In short, Bill Perkins wants to rescue you from over-saving and under-living. Regardless of your age, Die with Zero will teach you Perkins' plan for optimizing your life, stage by stage, so you're fully engaged and enjoying what you've worked and saved for.
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Nothing extraordinary
- By Agata Tudek on 06-27-23
By: Bill Perkins
Excellent content, but falls short without PDF
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warning: no pdf means little utility
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