A Path To Smarter Decumulation

Simplify Asset Management 761 Follower s Follow 5 Share Save Play ( 14min ) Comment (1) Summary In this post, we will explore the five critical behavioral and structural barriers in the decumulation phase of retirement and demonstrate how to design a portfolio that can overcome these hurdles. Navigating retirement necessitates the effective management of extended longevity risk against persistent systemic threats, including market dislocation, long-term inflationary pressures, and escalating healthcare costs. Decades of disciplined savings can instill deep-seated loss aversion, causing retirees to feel the pain of a market loss far more acutely than the pleasure of a gain. porcorex/iStock via Getty Images Introduction The modern retirement landscape, characterized by the decline of defined benefit pensions and the shift to self-directed defined contribution plans, has created a fundamental paradox: retirees often possess substantial capital yet may be paralyzed by the psychological This article was written by Simplify Asset Management 761 Follower s Follow Simplify was founded in 2020 to make institutional-grade alternative strategies available to all investors through the low-cost and transparent ETF vehicle. Content posted on this account is originally hosted on simplify.us and features work from Simplify employees, advisors, and subadvisors/research partners. For more information, please visit simplify.us or email info@simplify.us.

Preview: ~204 words