Retirement Spending Smile is one of five retirement spending strategies built into each RightCapital account. This strategy can be found and adjusted within the Advisor Portal > Models > Retirement Spending tab:
This method is called "Blanchett Spending Smile" and was created by David Blanchett. Research has shown that expenses within retirement decline slowly and steadily over time. The other consideration is Health Care costs, which typically increase over time. The idea is to create a spending smile where retirement expenses decrease over time, but healthcare costs increase over time.
Within RightCapital, the pre-loaded Retirement Spending Smile will adjust the expenses by the normal inflation rate minus 1% each year. This percentage can be adjusted in the Advisor Portal > Models > Retirement Spending tab.
