Quote:
Originally Posted by Enoch Root
Except you don't know that you've under-estimated until you're running out.
And yeah, graphs like that are informational if you want to play with the numbers and see what it looks like. But as a professional wealth manager, telling people "well, if we're wrong, you can always die earlier" isn't really a good way to deliver your services.
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I was thinking running out was a function of early market problems rather than a long life. If it’s early market problems then you cut back. My theory for longer life is your house is the buffer. Though that could be over saving as well.
I would love if a financial planning person talked about the probability of death and how certain I want to that my money will last. Is a 1% chance that you run out of money and just have government programs for the last 3 years of your life worth retiring 2 years later or reducing your retirement income by a few K per year. Framing retirement planning as a choice between a bunch of options and probabilities for me is a better way to make decisions
There is a real cost to over-saving.