A Model Approach to Selecting a Personalized Retirement Income Strategy

31 Pages Posted: 24 Mar 2021

See all articles by Alejandro Murguia

Alejandro Murguia

Retirement Researcher; McLean Asset Management

Wade D. Pfau

The American College for Financial Services; Retirement Researcher

Date Written: January 1, 2021

Abstract

This study identifies and validates a set of scorable retirement income factors to define preferences for an overall retirement income style. This investigation further attempts to create a workable model for retirement income planning by showing how the factors connect to four main retirement income strategies: systematic withdrawals with total return investing, risk wrap with deferred annuities, protected income with immediate annuities, and time segmentation or bucketing. Approaching retirement income agnostically and matching retirement income strategies based on an individual’s personal retirement income style may lead to improved outcomes that achieve greater “buy in” and comfort.

Keywords: Retirement planning, retirement income, systematic withdrawals, annuities, psychology

JEL Classification: D14

Suggested Citation

Murguia, Alejandro and Pfau, Wade D., A Model Approach to Selecting a Personalized Retirement Income Strategy (January 1, 2021). Available at SSRN: https://ssrn.com/abstract=3788232 or http://dx.doi.org/10.2139/ssrn.3788232

Alejandro Murguia

Retirement Researcher ( email )

1900 Gallows Rd, Suite 350
Vienna, VA 22182
United States

HOME PAGE: http://www.retirementresearcher.com

McLean Asset Management ( email )

1900 Gallows Rd, Suite 350
# 1150
Vienna, VA 22182
United States

HOME PAGE: http://www.mcleanam.com

Wade D. Pfau (Contact Author)

The American College for Financial Services ( email )

630 Allendale Rd
King of Prussia, PA 19406
United States

HOME PAGE: http://www.retirementresearcher.com

Retirement Researcher ( email )

1900 Gallows Rd, Suite 350
Vienna, VA 22182
United States

HOME PAGE: http://www.retirementresearcher.com

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