Golden-year parachute
How can you “avoid running out of money” in your golden years? says Jonathan Clements in The Wall Street Journal. Start by putting five years’ worth of spending, or “25 percent of your nest egg,” in a cash reserve “cushion”—high-yield savings accounts, short-term bonds, and money market funds. The rest should be for long-term growth, with maybe 50 percent in stocks and 25 percent in bonds, so “sit tight” if those funds “are underwater.” For more income certainty, “delay Social Security to get a larger monthly check” later on. And if you hit 85 going strong, you should consider investing your last investment “bucket” in an income annuity. At that age, the “payout should be handsome.” Le Petit Prince
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