Well, well, well, isn’t retirement an exciting journey? Sort of like finding your way in the Jungle Book with Uncle Scrooge as your guide. Buckle up folks, Professor Wade Pfau is on stage, the Retirement Income Extraordinaire, the top brain at the American College, and the mastermind behind retirementresearcher.com, serves up a delightful twist on the trite truisms of retirement investing. You know, all that jazz about waving goodbye to stocks and stock mutual funds as you saunter towards retirement? Well, Professor Pfau has other ideas.
The Plot Thickens: Challenging the ‘4% Rule’ Norm
Mmmhmm, this isn’t your average coffee table chat. Now, everyone and their dog will nod emphatically when you mention the golden rule of retirement planning – reducing portfolio risk as you inch towards retirement and in the early days of living the retired life. Sound familiar? That’s because you’ve heard it like a broken record. So, taking the plunge and shifting a larger portion of your assets into bonds while side stepping stocks, like in target-date retirement funds, isn’t exactly revolutionary. However, Pfau has an alternative vision to spice up life post-retirement.
Pfau’s Retirement Investing Twist
So, what’s cooking in Pfau’s retirement kitchen? Well, this maestro suggests that as retirees cruise deeper into retirement, they shouldn’t shy away from our friends, Mr. and Mrs. Stock. Instead, they should welcome them aboard their investment ship. Yes, you heard right. Increase the proportion of their portfolio invested in stocks. Now, doesn’t that flip retirement investing wisdom on its head?