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Mystery no more: Portfolio allocation, income and spending in retirement

beebee
edited July 2022 in Other Investing
How do people manage their income and spending in retirement? How do they adjust their asset allocation as they transition into retirement? Certainly, there is survey data on the subject and much informed speculation. Yet the full picture—based on empirical evidence that shows how people actually behave—has remained elusive.

JPMorgan Chase data for around 62 million households, we studied 31,000 people as they approached and entered retirement between 2013 and 2018.

This data offers the very first holistic financial view of households in transition. From it, we created a rich mosaic showing retirees’ income, spending and wealth. Real data about real behaviors, we believe, can deliver the most useful insights.

The research reaffirmed some of our assumptions and in other ways proved surprising.
retirement-insights/retirement-portfolio-allocation

Study was commented on in this retirement blog:
The study was a rare look into how 31,000 people manage their money in retirement. Not surprisingly, a lot of people seem to be making some mistakes (no Roth conversions come to mind). It’s understandable, given the complexity of the topic and the reality that learning to manage your money in the “decumulation phase” is an entirely different skill set than those used in the “accumulation phase.”
how-real-people-manage-their-money-in-retirement/

Comments

  • CrashCrash
    edited July 2022
    ....Don't want to convert from T-IRA to Roth because already, we owe no tax. Wondering if a conversion would result in a tax bill. Like the time my insurance agent, a wonderful, honest fellow--- told us to switch the address on our car registration after we moved, so that the proper County would receive the annual excise tax payment. ...And the way the glorious, wonderful, fabulous, lovely RMV processed that? The idiot CANCELED our registration and issued a replacement, as if it had been lost or stolen--- for an ADDITIONAL FEE. Scumbags.

    ...Also, I have a few thousand in that T-IRA which is nondeductible and nontaxable, too. Not one of my best money decisions, but "hoo-duh-thunk-it?" Ours is a hybrid situation, too, with one retired and the other still working. So that changes the Big Picture, and the way the horizon appears. Since the start of 2022, our portfolio is riskier than it was, prior. Old recipes won't work anymore. Still, one must take care not to simply be reckless. Now I will go look at those links.
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