{"id":317340,"date":"2021-08-06T21:20:00","date_gmt":"2021-08-06T18:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/retirement-weekly-why-retirees-are-better-off-safe-than-sorry\/"},"modified":"2021-08-06T21:20:00","modified_gmt":"2021-08-06T18:20:00","slug":"retirement-weekly-why-retirees-are-better-off-safe-than-sorry","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-why-retirees-are-better-off-safe-than-sorry\/","title":{"rendered":"#Retirement Weekly: Why retirees are better off safe than sorry"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3641dc8d0ee\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3641dc8d0ee\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-why-retirees-are-better-off-safe-than-sorry\/#Are_retirees_with_more_assets_more_satisfied_with_their_retirement_lives\" >Are retirees with more assets more satisfied with their retirement lives?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-why-retirees-are-better-off-safe-than-sorry\/#Mark_Hulbert\" >Mark Hulbert<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Retirement Weekly: Why retirees are better off safe than sorry<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Are_retirees_with_more_assets_more_satisfied_with_their_retirement_lives\"><\/span>\n  Are retirees with more assets more satisfied with their retirement lives?<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000365082\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000365082\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       There\u2019s a limit to how much h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>iness money can buy.<\/p>\n<p> That\u2019s one of the more provocative lessons I draw from a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ebri.org\/retirement\/publications\/issue-briefs\/content\/why-do-people-spend-the-way-they-do-in-retirement-findings-from-ebri-s-spending-in-retirement-survey\" class=\"icon none\">recent survey of retirees conducted by the Employee Benefit Research Institute (EBRI)<\/a>. Conducted last fall, the EBRI surveyed 2,000 retirees between the ages of 62 and 75 with less than $1 million in retirement assets. One of the numerous questions on the survey asked retirees to rate their level of satisfaction with retirement life.<\/p>\n<div class=\"paywall\">\n       The ability to correlate their answers with retirement assets traces to how the EBRI sliced and diced their sample. Based on income, wealth and spending factors, retirees were placed into five categories or profiles.<\/p>\n<p>The accompanying chart plots these five profiles\u2019 average satisfaction scores. Notice that, but for one profile, the scores all fall within a fairly close range.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:69.42857142857143%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-380789?width=540&amp;size=1.4414414414414414 540w, https:\/\/images.mktw.net\/im-380789?width=620&amp;size=1.4414414414414414 620w, https:\/\/images.mktw.net\/im-380789?width=639&amp;size=1.4414414414414414 639w, https:\/\/images.mktw.net\/im-380789?width=700&amp;size=1.4414414414414414 700w, https:\/\/images.mktw.net\/im-380789?width=700&amp;size=1.4414414414414414&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-380789?width=700&amp;size=1.4414414414414414&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-380789?width=700&amp;size=1.4414414414414414&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-380789?width=700&amp;height=486\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       The one outlier is the so-called \u201cStruggling\u201d profile, with an average satisfaction score of 5.75, with 1 indicating extremely dissatisfied and 10 indicating extreme satisfaction. And it\u2019s hardly a surprise that retirees in this group had lower satisfaction levels than the other four.<\/p>\n<p>That\u2019s because, according to EBRI, the retirees in this profile \u201chad low levels of financial assets (less than or equal to $99,000) and income (less than $40,000 annually)\u2026 more likely than any other group to rent rather than own their homes; \u2026 most likely to have unmanageable debt, such as credit card and medical debt\u2026 [and] rely on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security to provide the bulk of their retirement income.\u201d<\/p>\n<p>At the other end of the spectrum, retirees in the EBRI\u2019s \u201cAffluent\u201d profile typically had high levels of financial assets ($320,000 or more) and annual income of $100,000 or more. Furthermore, \u201cthey were mostly mortgage-free homeowners, with no debt\u2026 [and] rarely reported having credit card and auto loan debt.\u201d So it\u2019s entirely to be expected that retirees in this category would report higher satisfaction levels than retirees in the \u201cStruggling\u201d profile.<\/p>\n<p>What <em>is<\/em> surprising, however, is the average satisfaction scores in the three profiles in between these two extremes. Notice that they are quite close to that of the \u201cAffluent\u201d profile. Though I don\u2019t have access to the underlying data, my hunch is that the differences in the scores for these upper four profiles (all those besides the \u201cStruggling\u201d category) aren\u2019t statistically significant.<\/p>\n<p>The conclusion I draw: Once we jump over some initial financial hurdle in preparing for retirement, there\u2019s relatively little correlation between more wealth and greater happiness. Furthermore, that initial hurdle is fairly low.<\/p>\n<p><strong>The investment implications<\/strong><\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Perhaps the most important investment implication I draw from this is that it\u2019s better to avoid the worst-case scenario than it is to \u201cshoot the moon\u201d and bet everything on attaining the best-case scenario. Once you have your basic financial needs met, additional wealth has quickly diminishing returns in terms of your retirement satisfaction. So it makes little sense to incur inordinate risks in pursuit of those diminished returns.<\/p>\n<p>One portfolio move you might make in response to this investment implication is to annuitize part of your retirement portfolio. By doing that you can lock in a guaranteed monthly payout that will last as long as you (or a spouse) live. Your goal might be to annuitize enough of your portfolio so that you jump over the low hurdle identified in the EBRI survey\u2014thereby avoiding ending up in the \u201cStruggling\u201d profile of retirees.<\/p>\n<p>To illustrate, consider the stream of annuity payments you could lock in if you purchased a $100,000 annuity as a single male, aged 65. According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.immediateannuities.com\/\" class=\"icon none\">ImmediateAnnuities.com<\/a>, at current rates you could secure a guaranteed monthly income of $501 per month until your death. That would be above and beyond any Social Security or pension payments you are already entitled to.<\/p>\n<p>Whether or not an annuity is a good idea depends on a host of factors, such as whether you are likely to outlive your actuarial life expectancy. You most definitely should consult a qualified financial planner before considering an annuity, since the devil is in the details.<\/p>\n<p>In any case, note that it\u2019s unlikely you\u2019ll want to annuitize your entire retirement portfolio. The optimal amount depends on any of a number of assumptions\u2014such as your age, your marital status, your portfolio size, your life expectancy, the markets\u2019 returns, and so forth. Several years ago, David Blanchett, head of retirement research at Morningstar, analyzed more than 78,000 possible scenarios, each one of which represents a different set of assumptions. The average optimal annuity allocation across all those scenarios was 31%.<\/p>\n<p>The bottom line? Only to a limited extent can money buy you retirement satisfaction. Plan accordingly.<\/p>\n<p><em>Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letters that pay a flat fee to be audited. He can be reached at <\/em><em>mark@hulbertratings.com<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Mark Hulbert\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/mark-hulbert\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/MktwHulbert\",\"text\":\"@MktwHulbert\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:contributors@marketwatch.com\",\"text\":\"contributors@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Mark_Hulbert\"><\/span>Mark Hulbert<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7592-1A02A016B530%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Retirement Weekly: Why retirees are better off safe than sorry&#8221; Are retirees with more assets more satisfied with their retirement lives? There\u2019s a limit to how much happiness money can buy. That\u2019s one of the more provocative lessons I draw from a recent survey of retirees conducted by the Employee Benefit Research Institute (EBRI). Conducted&#8230;<\/p>\n","protected":false},"author":1,"featured_media":317341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-317340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/317340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=317340"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/317340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/317341"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=317340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=317340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=317340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}