McLean Asset Management

Should I Stay or Should I Go? Housing Decisions in Retirement

By McLean Asset Management / February 1, 2016 /

A plan to meet housing needs is an important part of a retirement income strategy. A home provides an emotional anchor, providing daily comfort and shelter, memories, and nearness to friends and community. Homes are also a major source of wealth for retirees and near-retirees. Home equity provides between 45 and 75% of median household…

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What’s the Difference between Budgeting and Financial Planning?

By McLean Asset Management / September 8, 2015 / Comments Off on What’s the Difference between Budgeting and Financial Planning?

Everyone knows the story of the tortoise and the hare: A speedy hare ridicules a slow-moving tortoise until the tortoise proposes a race. The hare agrees, bolts past the tortoise and then, certain he’ll win, takes a nap break halfway through. The tortoise keeps on, slow and steady, and the hare awakes to find he’s…

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Withdrawal sequencing: avoiding the pitfalls of retirement distribution order

By McLean Asset Management / August 3, 2015 /

Withdrawing from your investment portfolio in retirement is like walking through a minefield. If you don’t take the right path, you’re going to take a large tax hit. Most people don’t think about it, but your distribution strategy in retirement and the resulting taxes can have a significant impact on how long your money lasts…

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Risky Business: Why Younger Investors Should Take Risks in Their Portfolio

By McLean Asset Management / March 16, 2015 /

Millennials began their careers around the 2008-2009 downturn and are understandably gun-shy around stocks. They saw their parents’ losses and want to avoid having the same thing happen to them. As a result, most millennial investors are opting for the security of large cash positions or more conservative portfolios to make sure they don’t experience…

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Dave Ramsey’s 8% Withdrawal Rate

By McLean Asset Management / June 6, 2013 /

Having spent the better part of the last 10 years in Japan, I have not been all that familiar with Dave Ramsey. Sure, I’ve heard from time to time that there is a radio show financial guru who talks about 12% market returns and an 8% withdrawal rate in retirement, but that sounded so farfetched…

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Withdrawing a Constant Percentage of Remaining Wealth

By McLean Asset Management / April 15, 2012 /

For almost all of my work on retirement withdrawal rates, I’ve assumed a constant inflation-adjusted withdrawal rate strategy.  That is, the withdrawal rate is defined as an amount of income withdrawn in the first year of retirement as a percentage of retirement date assets. This income amount then adjusts for inflation in subsequent years. Since…

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William Bengen’s SAFEMAX

By McLean Asset Management / February 7, 2012 /

If the long-term average real return from the stock market is 7%, does that mean one can safely use a 7% withdrawal rate from a 100% stocks portfolio without worrying about running out of wealth or even dipping into the original principal? The answer is No. But answering yes is a common mistake; one which…

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Analyzing Fixed-Income Securities and Strategies – Journal of Financial Service Professionals

By McLean Asset Management / November 3, 2005 /

Executive Summary Fixed-income instruments are largely used within a portfolio to reduce volatility and provide a more consistent distribution stream for clients. Holding non-callable instruments backed by the U.S. government offer significant protection in times of financial crisis while reducing the long-term opportunity cost of bonds. U.S. government instruments with maturities from one to five…

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