Conventional wisdom says to rebalance a portfolio (that is, to return periodically to a predetermined asset allocation between stocks and bonds) when saving for retirement. But what about after retirement? New research in this month's Journal of Financial Planning suggests that rebalancing may not help much in making a retirement portfolio last longer.
If so, other techniques may still be useful. I've written previously (subscription required) about how commodities and flexible spending strategies may potentially increase the traditional (4 percent) safe withdrawal rate from retirement savings.
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