THE ACTUARIAL STRATEGY

This strategy is designed to take you as far as you can go—but not much further. The actuarial strategy involves spending capital at a regular clip so that little or nothing is left over for children, friends, or charitable institutions. 

For example, as a widow of 65, you can, according to the actuarial tables, anticipate 19.5 more years. (This figure will probably increase in the future.) Your income from Social Security or company pension will remain relatively constant no matter how long you live. It is possible for you to plan on spending your capital (and the income it produces) over a specified time period—so much per month or year. 

You must take into account the fact that, as you dip into your capital, the income it produces will diminish. This strategy can be a high risk. If you have a partner, the calculations are more complex, and you may want to talk to a financial expert before embarking on the actuarial strategy. 

I Retirement years more enjoyable. If spending money will make you happier, then the advantage is you can spend it while you will enjoy it most. 

I Might eliminate estate taxes. The government can t take something from you if it is spent in advance. 

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