Actually, come to think of it, this almost sounds more like time segmentation problem than asset - liability matching in a structural way. If that is the case, there seem to be easier ways to practically implement the timing of needed cash. For example, one can implement a rolling bond or CD ladder to match cash needs for the years one is delaying Social Security.
Interesting article, but practically extremely difficult to implement. I think that Wade Pfau has a much more easy to understand and practical way for matching assets to liabilities. Easier to implement as well. He matches reliable income with essential expenses, a diversified portfolio with discretionary expenses/legacy, and reserves for contingencies such as spending shocks. An example of how to implement: Social security, pensions and/or SPIAs matching essential expenses; insurance and a reverse mortgage line of credit used only to cover spending shocks; and a diversified portfolio for discretionary expenses/legacy (that can be more aggressive than otherwise due to the fact that essential expenses and spending shocks are covered). I highly recommend all of his books for detailed explanations as to how this works along with valuable information on what questions to ask in order to implement.
Oh, and while we are on the topic of stolen accounts and the hassle of resetting up all those auto-payments which happened to us about 5 years ago...I now use a credit card that never gets "out into the wild" for all bill auto-payments - that card stays in the safe. For other credit card use - restaurants, online purchases, etc. - my husband and I each have a card we use for those types of purchases. If stolen, not as big a deal as no auto-payments are attached to them. Another idea...
I am sorry about your experience, Jonathan. Stealing from mailboxes has been going on for quite some time. In those rare cases when I cannot send a gift card via email, I send cash. Can it be stolen? Yes, but easier to recover from than your situation. In the rare case where I must write a check (yard maintenance), I use my personal checking account that has minimal money in it; that way, if compromised there isn't enough to steal and I don't have to change any auto-payments. Just a few ideas for the future!
Comments
Actually, come to think of it, this almost sounds more like time segmentation problem than asset - liability matching in a structural way. If that is the case, there seem to be easier ways to practically implement the timing of needed cash. For example, one can implement a rolling bond or CD ladder to match cash needs for the years one is delaying Social Security.
Post: Money When Needed
Link to comment from September 21, 2022
Interesting article, but practically extremely difficult to implement. I think that Wade Pfau has a much more easy to understand and practical way for matching assets to liabilities. Easier to implement as well. He matches reliable income with essential expenses, a diversified portfolio with discretionary expenses/legacy, and reserves for contingencies such as spending shocks. An example of how to implement: Social security, pensions and/or SPIAs matching essential expenses; insurance and a reverse mortgage line of credit used only to cover spending shocks; and a diversified portfolio for discretionary expenses/legacy (that can be more aggressive than otherwise due to the fact that essential expenses and spending shocks are covered). I highly recommend all of his books for detailed explanations as to how this works along with valuable information on what questions to ask in order to implement.
Post: Money When Needed
Link to comment from September 21, 2022
Oh, and while we are on the topic of stolen accounts and the hassle of resetting up all those auto-payments which happened to us about 5 years ago...I now use a credit card that never gets "out into the wild" for all bill auto-payments - that card stays in the safe. For other credit card use - restaurants, online purchases, etc. - my husband and I each have a card we use for those types of purchases. If stolen, not as big a deal as no auto-payments are attached to them. Another idea...
Post: A Dirty Business
Link to comment from June 18, 2022
I am sorry about your experience, Jonathan. Stealing from mailboxes has been going on for quite some time. In those rare cases when I cannot send a gift card via email, I send cash. Can it be stolen? Yes, but easier to recover from than your situation. In the rare case where I must write a check (yard maintenance), I use my personal checking account that has minimal money in it; that way, if compromised there isn't enough to steal and I don't have to change any auto-payments. Just a few ideas for the future!
Post: A Dirty Business
Link to comment from June 18, 2022