Goldstein on Gelt: Which Retirement Planning Tool Should You Use?

Doug Goldstein, CFP®, director of Profile Investment Services Ltd., and Professor of Retirement Income Dr. Wade Pfau, CFA© discuss different retirement planning tools. Wade explains how reverse mortgages can be a source of income during retirement. He also shares other retirement planning tools, such as “time segmentation strategy” and the “bucket strategy.”

It’s okay to use some of your portfolio's principal

Can retirees leave their principal intact and only live off interest? In today’s low-interest rate environment, this may be nearly impossible. So how can retirees know how much they can safely withdraw?

Doug promotes the use of Monte Carlo simulations to help quantify what might happen with your investments in the future. He explains what these simulations can and cannot do, are and why they are helpful in determining the amount of principal to withdraw.