Retirement expert Mark Miller offers an excellent assessment in his article for Morningstar. He acknowledges that the stock market is at all-time high, but quotes wealth management advisor Michael Kitces, who says instead of withdrawing the traditional 6.5% from investment accounts, "it might be wiser for new retirees to just start with a lower initial rate of around 4%."
Miller also cautions that Social Security and Medicare, while they remain unchanged on the new tax law, could undergo some changes in the future. According to Miller, there is the possibility that the full benefit age for Social Security could eventually be raised to 69 from the current 66. It is already going up to 67 for those who were born in 1960 or later.
Everything, it seems, has a positive and negative side. For example, with the Fed continuing to raise interest rates, low-risk investments such as CDs may benefit, but the cost of borrowing would go up. It is also a fact that those individuals entering retirement have more debt than ever before, in part because of home mortgages.