Retirement Planning Guidebook Chapters 4 - 6

 Chapters 4 - 6 cover the 4% Rule, Annuities and Social Security.

Chapter 4 notes on the Trinity Study:

The Trinity Study switched its bond holding for the exercise purpose from intermediate government bonds to long term corporate bonds, and the volatility went up and safe percentage to draw went down. Something to consider when having a regular corporate bond fund in retirement.

Intermediate government bonds do provide the sweet spot for risk and return in worst case scenarios. Consider FUAMX for that portion of the portfolio.

The 4% rule is inappropriate for those who are expecting to be retired for more than 30 years - though it is a decreasing rate that the safe withdrawal rate would go down past 30 years/4%.

Chapter 5 notes on Annuities:

He has to start the chapter on Annuities with "Caveat about Annuities" where he mentioned he's just going to assume the annuity is fairly priced and appropriate which tells me all I need to know about using annuities.

Bond Ladders are not the same thing as Bonds Funds. Ladders provide more income protection but only for the duration of the ladder itself.

There are so many different annuity types and the naming seems to be specifically confuse customers. A field fraught with potential problems. I think I'll likely stay away.

Chapter 6 notes on Social Security:

The Social Security Fund has been a concern several times in the 70s and 80s after the fund was depleting since Congress included spousal, disability and survivor benefits. Of course, it will run out of money sooner - you've added more people to the group of beneficiaries that didn't add to the pot!

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