Flexible Distributions Update 2023
Channel: Paul Merriman
Date: 2023-05-04

If a retired investor has the ability to use a flexible distribution strategy it will likely produce one of the best financial outcomes in retirement.  In this presentation Paul, Chris and Daryl compare the difference in returns and risk between the fixed and flexible distribution strategies.

The discussion compares returns and total distributions for two of the 9 sound investing portfolios.

In the presentation they make use of the following tables:

Table D1.3  Fixed Distribution S&P 500 Equity Portfolio  ($30,000/yr) https://paulmerriman.com/wp-content/uploads/2023/04/D1-3-Fixed-Distribution-Tables-50-50-2023-1.pdf
Table D1.5  Fixed Distribution S&P 500 Equity Portfolio  ($50,000/yr) https://paulmerriman.com/wp-content/uploads/2023/04/D1-5-Fixed-Distribution-Tables-50-50-2023.pdf
Table E1.3  Flexible Distribution U.S. 4-Fund Equity Portfolio (3%/yr) https://paulmerriman.com/wp-content/uploads/2023/05/E1-3-Flexible-Distribution-Tables.pdf
Table E1.4  Flexible Distribution U.S. 4-Fund Equity Portfolio (4%/yr) https://paulmerriman.com/wp-content/uploads/2023/05/E1-4-Flexible-Distribution-Tables.pdf
Table E1.5  Flexible Distribution U.S. 4-Fund Equity Portfolio (5%/yr) https://paulmerriman.com/wp-content/uploads/2023/05/E1-5-Flexible-Distribution-Tables.pdf
Table E1.6  Flexible Distribution U.S. 4-Fund Equity Portfolio (6%/yr) https://paulmerriman.com/wp-content/uploads/2023/05/E1-6-Flexible-Distribution-Tables.pdf

For those interested in the historical returns of the 9 portfolios, as well as the complete list of flexible distribution tables:

50/50 Sound Investing Portfolio https://paulmerriman.com/wp-content/uploads/2023/04/SoundInvestingPortfolios-Asset-Allocations.pdf
Flexible distribution tables (50/50 U.S./Intl) https://paulmerriman.com/wp-content/uploads/2023/04/E1-3-Flexible-Distribution-Tables-50-50-2023.pdf
Flexible distribution tables (70/30 U.S./Intl) https://paulmerriman.com/wp-content/uploads/2023/05/16-Flexible-Distribution-Tables-70-30-2023.pdf

Quote about retirees only spending income and not principal:
https://ofdollarsanddata.com/how-do-retirees-actually-spend-their-money/

Academic paper suggesting Americans spend less in retirement because their self-insuring:
https://econweb.ucsd.edu/~itelyuko/nt3a-paper.pdf

This information is intended to be used and must be used for information purposes only.

We are not investment or tax advisors, and this should not be considered advice. It is very important to do your own analysis before making any investment or employing any tax strategy. You should consider your own personal circumstances and speak with professional advisors before making any investment.

The information we present is based on our own research and opinions. We believe the information presented herein to be true and accurate at the time of publication but do not guarantee the accuracy of every statement, nor guarantee that the information will not change in the future.

It is important that you independently research any information that you wish to rely upon, whether for the purpose of making an investment or tax decision, or otherwise. No content on the website (paulmerriman.com) or related sites, nor any content in our newsletters, email, or related content, constitutes, nor should be understood as constituting, a recommendation to engage in any of the investment strategies we present. 

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