NAPA Net - Polling Places 051118

What's Your Draw Down Direction(s)?

There are pretty consistent notions of how much one needs to save for retirement – but the real question increasingly is – how best to go about drawing it down?

Different circumstances call for different approaches, of course – and yet, we all have our favorites to recommend based on those individual situations.

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* 1. Which drawdown strateg(ies) have you recommended (check all that apply)?

Systematic withdrawals/4% strategy

Time-based segmentation (what the Financial Planning Association calls the bucket strategy, where you set up separate pools of investments with lowest-risk investments in the near-term segment, somewhat higher-risk investments in the next segment, etc., and draw down from one segment at a time)

Essential vs. discretionary (the flooring strategy – classify retirement expenses as essential or discretionary, use low-risk investments or annuity guarantees to fund essential expenses, annuitize a portion of the portfolio to pay for everyday expenses)

Required minimum distribution (RMDs) formula

Use 401(k)/DC/IRA balances first to delay Social Security draw

Live off income, postpone touching assets

Don't do these kind of recommendations

Whatever the plan provides

Something else (please specify)

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* 2. Which ONE do you think is most commonly recommended?

Systematic withdrawals/4% strategy

Required minimum distribution (RMDs) formula

Live off income, postpone touching assets

Use 401(k)/DC/IRA balances first to delay Social Security draw

Whatever the plan provides

Something else (please specify)

Question Title

* 3. Which ONE do you think is most commonly used by individuals?

Systematic withdrawals/4% strategy

Required minimum distribution (RMDs) formula

Use 401(k)/DC/IRA balances first to delay Social Security draw

I've no earthly idea

Whatever the plan provides

They have no strategy at all whatsoever

Live off income, postpone touching assets

Something else (please specify)

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* 4. Which one is your "favorite"?

Systematic withdrawals/4% strategy

Required minimum distribution (RMDs) formula

Use 401(k)/DC/IRA balances first to delay Social Security draw

Live off income, postpone touching assets

I've got no particular favorite

Something else (please specify)

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* 5. Other comments about draw down strategies, the recommendations on draw down strategies, the actual utilization of draw down strategies, the need for changes in draw down strategies, or life in general?

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* 6. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

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* 7. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 8. Suggestions for future survey questions?

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* 9. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...