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rules of thumb

   

Three Detailed Income Strategies for Retirement

by Flexo on September 26, 2009. Investing 3 comments.

Earlier this week, I reviewed common financial rules of thumb and offered a quick evaluation of how each rule would likely perform if accepted by an individual as the final word. One of these was the rule that convinces retirees they will be financially secure if they withdraw 4 percent of their nest egg for income ... Continue reading this article…

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A Report Card for Financial Rules of Thumb

by Flexo on September 23, 2009. Personal Finance 21 comments.

I’m not a big fan of “rules of thumb.” These are bite-sized nuggets of wisdom masquerading as advice, designed to apply to a mass audience. At best, they cant point someone in the right direction, but at worst, rules of thumb can erroneously send people on the wrong path or can mistakenly instill a false ... Continue reading this article…

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Take This Rule of Thumb Quiz

by Flexo on January 11, 2008. Financial Advice and Advisers 8 comments.

I often rail against “financial rules of thumb” for their overly simplistic view of what are often complex situations. There is far too much potential for snappy catchphrases to lead people to refuse to think and evaluate situations on their own. Rules of thumb don’t take into account individual circumstances and even the ... Continue reading this article…

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Retirement Income Rule of Thumb Debunked

by Flexo on November 27, 2007. Planning 17 comments.

To retire comfortably, you’ll need to have an income of 80 percent of your maximum pre-retirement income. That’s a common rule of thumb you hear trumpeted by financial planners. Unfortunately, it’s not accurate. It may give someone planning their retirement a basis for thinking about creating income during those years, whether from part-time work or ... Continue reading this article…

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