Natalie Colley Featured Article on Forbes: Depending Solely on Portfolio Income Might Not Be Your Best Bet in Retirement
By: Natalie Colley
September 24, 2023
Natalie Colley, Senior Lead Advisor at Francis Financial, offers advice on prioritizing overall returns while managing risk..
In my role as a financial advisor, I often encounter the idea that a secure retirement means living off of the income generated from your portfolio. A quick google search confirms that this ideology is still very much espoused as a sensible approach to retirement funding in order to never need to worry about running out of money.
A strong desire to leave their nest egg untouched is one reason retirees spend significantly less than they can actually afford to spend during their retirement years, a challenge I wrote about here. A recent Blackrock whitepaper confirms this, finding that retirees prefer to manage expenses rather than spend down their portfolio. While I appreciate the simplicity of this dictum, it isn’t the best approach to funding your retirement.