What’s a Safe Withdrawal Rate in Retirement? | Retirement Planning content from WealthManagement.com

What’s a safe withdrawal rate in retirement?

For years, the rule-of-thumb answer has been 4 percent, adjusted annually for inflation. But a growing number of financial planning experts are re-thinking that number.“Advisors are getting the question a lot these days from clients,” says Maria Bruno, a senior investment analyst in Vanguard’s Investment Counseling and Research group. “

Until a decade ago, a balanced portfolio could provide four percent purely from returns, and some retirees were still accumulating funds. Now, with interest rates so low, the question is whether retirees can still spend that amount, and how they can build a portfolio to sustain it.”

via What’s a Safe Withdrawal Rate in Retirement? | Retirement Planning content from WealthManagement.com.

Long-term care insurance about to set fees by gender

Gender discrimination is coming — and it’s perfectly legal.

The Long Term Care insurance industry has finally recognized the obvious: Women live longer than men. And because women live longer, they use more benefits from their long-term care insurance policies.In fact, the most recent figures show that two-thirds of all long-term care claims were paid to females, and 70 percent of the dollars paid out by insurers were paid to women. That’s a significant number, when you realize the industry paid out more than $6 billion in claims in 2011.

via Long-term care insurance about to set fees by gender – Chicago Sun-Times.