In Retirement

IRR (internal rate of return) was the common term for the percentage rate of return on an investment until the early 1990s, when CAGR (compound annual growth rate) gained popularity. Today, CAGR is typically used for simple annualized returns of regular cash flows, while IRR is reserved for more complex cases involving variable cash flows and irregular compounding periods. CAGR can be considered a simplified subset of IRR. IRR is typically backward-looking (based on present value),

MY COWORKER RECENTLY retired. He is 50 years old and has been with the company for over 25 years.
The company offers a decent 401(k) match (100% match on 6% of your salary) along with other great benefits.
In his case, how can he generate income? How can you retire early if most of your assets are in retirement plans?
Most tax-advantaged accounts have restrictions on withdrawals, but there are a few strategies that many people don’t know of:
 

Unusual events happen from time to time.  Since 2022 the S&P 500 has had some remarkable years.  Recently foreign stocks have also done very well.  This is a boon to retirement portfolios, and particularly welcome for those entering retirement.
The opposite situation is the “lost decade” which I recently posted about.  Some say these are rare and if we are lucky the timing will be such as to have slight impact on retirees.  But fingers crossed is not a strategy.  

The  recent discussion about withdrawal rates – 4% and all  that – got me thinking about the importance and confusion surrounding that decision.  I don’t  personally have to deal with it and gladly so because I’m sure I would not handle it well. My withdrawals are those required by RMDs. 
The current RMD table is based on the 2012 Individual Annuity Mortality (IAM). The table is more generous than a “single life” actuarial table. It is calculated using the Joint Life and Last Survivor expectancy for an individual and a hypothetical beneficiary who is exactly 10 years younger.

The advice I keep seeing says that you can safely withdraw 4% a year (adjusted for inflation) from a 60-40 portfolio over 30 years. This is all well and good, if your portfolio is 60-40 and you start withdrawing at age 70 – or 65 if you are more pessimistic about your longevity. I have always planned based on living to 100, without really hoping to make it that long, so this advice would have worked if I had started drawing on my portfolio at 70.

There are three topics of vital importance to nearly everyone that at the same time are near the top of the list to be criticized and misunderstood by nearly everyone. (taxes are at the top).
Health insurance
Social Security
Electric and Gas utilities 
I spent by whole career working for a utility and at the same time designing and managing health insurance plans. I study Social Security and may be one of five Americans in the US who reads the annual trustee report.

There has been a lot of debate regarding how to fix the impending (2032) shortfall in Social Security benefits.
This morning I was reading one of my financial newsletter emails and found this link:
https://www.ssa.gov/OACT/solvency/index.html?utm_source=substack&utm_medium=email
Happy Reading!

If a budget helps you manage money, provides a sense stability, etc., go for it, but…
recognize a budget doesn’t do any of the things often attributed to it, it doesn’t do anything. Doing or not doing something is up to the individual…including sticking to a budget🤑
Several times I have looked up the question, “why do I need a budget.”  The answer always comes back implying the budget somehow actually does things without human involvement,

I admit it, I am addicted to social media. I read Threads, X, Facebook and even TruthSocial every day. It is a bad, frustrating and depressing habit. 
There are those who say just ignore them, what is said does not matter in the real world. I wish that were true, but I think that widespread distribution of lies, and misinformation is very harmful to individuals and society. When I read an absolute falsehood about Social Security or Medicare and see hundreds of agreeing comments and thousands of likes,

I’m planning a new home build as I head into retirement, and I’m considering carrying a mortgage and keeping the payment at no more than 18%-20% of my total retirement income floor, with a term of 10 years or less (with an early payoff).
For those who’ve done something similar (or chose not to), does that sound like a reasonable plan in real life—and what should I stress-test or watch out for?
Jeff

Dan’s recent post about the risk of cuts in Social Security benefits only seven or so years away got me thinking.

This title isn’t serious,  but I wonder if my unconventional SS strategy has once again helped me fall on greener grass? Actually I hope not because 60 million people would be harmed.
I took and saved SS at FRA while still working, my benefit wasn’t reduced and our combined benefits were invested in tax free bond funds for several years.

It’s in the news, and since I don’t know much about lotteries, I figured I’d look into this one.
I’ve never purchased a ticket and expect I never will. It’s not just the nearly impossible odds (1 in 292,201,338 in this case); I consider it a government-sponsored blood sport. In addition to being a tax on the poor and ignorant, the likelihood of an improvement in the lives of winners turns out to be about as probable as winning the lottery itself.

Recently I wrote that the potential for long term care (LTC) expenses was my main financial concern. There’s another concern in hot pursuit. 
Not many years ago, I was certain that funding to maintain current Social Security (SS) benefits would be secured. After all, no politician concerned with their job security would let the trust fund run dry. Right? I don’t know about you, but I’m losing hope. There are bills in each chamber regarding SS,

A married couple, both aged 82, have a portfolio of $10M, some in brokerage and some in tax deferred accounts (IRA). They have $70K a year in Social Security.
In addition to the Social Security, they want an additional $150K/year in pre-tax income for a total of $220K/year in pretax income.
What is the standard advice for how to get this additional income in a way that is “guaranteed”?

For those of us nearing retirement, you may be interested in this research published in September 2025 in the Financial Analysts Journal, a publication of the respected CFA Institute. Although audaciously titled The Only Other Spending Rule Article You Will Ever Need, the thesis is very simple:

use a TIPS ladder to cover all essential expenses (that are not otherwise covered by Social Security, pensions, existing annuities, etc.);
invest the remainder 100% in stock/equities;