47 0 0 0 13 6. A former neurologist turned investment adviser turned writer, William Bernstein has won respect for smartest stocks to invest in ability to distill complex topics into accessible ideas. Retirement investors have traditionally aimed to build the biggest nest egg possible by age 65. You recommend a different approach: figuring out how much you’ll need to spend in retirement, then choosing investments that will deliver that income.

But given the lower expected portfolio returns ahead, starting out with a 3. But it is a lot safer than automatically increasing the initial withdrawal amount with inflation. I also think that it makes sense to divide your portfolio into two separate buckets. The first one should be designed to safely meet your living expenses, above and beyond your Social Security and pension checks. In the second portfolio you can take investing risk in stocks. This approach is certainly a more psychologically sound way of doing things.

Investing is first and foremost a game of psychology and discipline. If you lose that game, you’re toast. What are the best investments for a safe portfolio? But they are among the most reliable sources of income right now.

One other income source to consider: Social Security. Unless both you and your spouse have a low life expectancy, the best version of an inflation-adjusted annuity out there is bought by spending down your nest egg before age 70 so you can defer Social Security until then. That way, you, or your spouse, will receive the maximum benefit. Fixed-income returns are hard to live on these days. Yes, the yields on both TIPS and annuities are low.