5 Must-Knows about In-Retirement Spending

Plus, questions to ask a financial advisor, why portfolio diversification helped investors in 2022, and more! [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=44097&elqTrackId=44fbcd03b0e348b38e72d6cb767c559d&elq=ae51da954cef4dbd86209cf5f5b77798&elqaid=44097&elqat=1&elqCampaignId=21308) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] One of my favorite parts of my job has long been speaking to actual groups of investors: It’s a benevolent cycle in that it puts me in contact with regular investors, who in turn give me ideas about what I should be working on. One of the presentations in my current rotation distills some key findings [from the research on safe withdrawal rates that John Rekenthaler, Jeff Ptak, and I put out last year]( including the importance of starting conditions (the old “sequence of return risk”) and how to factor in inflation. Thanks to my colleague Scott Halver, longtime Morningstar video producer, we recorded the presentation, “[5 Must-Knows About Retirement Spending]( and it’s running on Morningstar.com this week as part of our “[Retirement Playbook]( special report. If you’re already retired—or thinking about retiring someday—you’re bound to pick up some new information. I also delved into our research on flexible withdrawal strategies in a [recent article](. One reassuring aspect of our findings is that even modest spending adjustments—such as holding payouts steady after a losing year rather than taking an inflation adjustment—help boost starting and lifetime withdrawal amounts. And while we’re on the topic of weighty research, do check out our recently published paper on [asset-class diversification and correlations]( which Amy Arnott helpfully condensed into [a short-form article]( for the “too long, didn’t read” types. The bad news is that investors who have taken pains to diversify into assets like non-U.S. stocks or small-value stocks haven’t gotten a lot for their efforts over the past decade; a plain-vanilla U.S. 60/40 portfolio would’ve delivered a higher return. The good news is that an investor with a better-diversified portfolio would have done better than the 60% U.S. stock/40% U.S. bond portfolio in 2022. Keep an eye on Morningstar.com for more takeaways from the paper, including my work on the diversification benefits of investing overseas (I’m still going to do it!), sectors, and which asset-class combinations work best in a recessionary environment. With warm regards, Christine Benz [5 Must-Knows About In-Retirement Spending]( Key things retirees can do to stack the deck in their favor. [Watch Today!]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [When It Comes to Retirement Spending, Flexibility Pays]( But dynamic strategies entail trade-offs—namely, more volatile cash flows and lower ending balances. [Read More]( [Morningstar’s Retirement Playbook]( Thinking about retiring soon—or have you recently retired? Here’s how to make sure your savings last. [Read More]( [Tax-Efficient Retirement-Saver Portfolios for Vanguard Investors]( A mix of tax-managed, index, and munis should reduce the drag of taxes on all-Vanguard portfolios for accumulators. [Read More]( [Micah Hauptman: Advocating for Investors’ Best Interests]( The director of investor protection at the Consumer Federation of America discusses conflicts of interest in the financial-advice space, crypto assets, and how social media affects investment decision-making. [Listen Today]( [2023 Diversification Landscape]( A look at how key asset classes performed in 2022, how correlations have changed, and the implications for portfolio building. [Read More]( [Why Portfolio Diversification Helped Investors in 2022]( The approach wasn’t a cure-all during last year’s brutal market environment, but it helped buffer some losses. [Read More]( [6 Steps for Smart Long-Term-Care Planning]( How to get your arms around the costs and resources available. [Watch Now]( [5 Questions to Ask a Financial Advisor]( Ask about areas of expertise, compensation arrangements, and credentials before signing on for financial help. [Read More]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602