This is an eye opening video. Most retirement planning videos look to either grow your portfolio or manage taxes, yet don't cover the actual approach to the withdrawal strategy and how the market affects it. This video, if I was within that planning session, would give me peace of mind.
Thank you for pointing out how uber conservative the 4% "rule" is.... its a corner case assuming withdrawals are on cruise control. If you just modulate spending when there's a down market, you can easily spend 6%+ the other 95% of the time.
I would be interested to see a video that describes the guardrails detail used in this video. I have played around with Vanguard's Dynamic Spending approach in my planning and may implement a similar tact for my withdrawal strategy.
Your video helped to reinforce that following a sound plan that meets your goals, tweaking as the guardrails are hit, is the thing to do. Easily illustrated in hindsight. Though when one is in the middle of a market crash during retirement, with no idea how low it will go or long it will last, sticking to the plan takes discipline. Assuming I start with a good plan I just need to follow it and not shoot myself in the foot.
Spot on and the timing couldn't be better, considering the prevailing concerns about the market and the number of people at or near retirement (on either side of it). Knowledge, plan and the discipline to stick to it trumps ignorance and our natural loss aversion bias. Eric nails it on knowledge ... smartest guy in the room.
Can you also run the same scenario starting from 2000? That would include 2 massive drawdowns. I tried many portfolios only funds like wellesley survives that period which is like 35% value stocks and 65% bonds.
Yes, I didn't highlight that in this video but that retiree would have seen one income raise and then no other adjustments. Would currently be sitting at an inflation adjusted balance of around $1.2M.
Great video. I think though that if we have another 2008 things will be much worse for longer as the fed won't have either the political support or the resources to attack the problem as they did back then. So as a retiree we would need to take more drastic measures to stay afloat. Especially those newly retired and younger that 65.
I would LOVE to get a straightforward discussion on China’s move against the US dollar. I know the thread is REAL but what does it mean for the stock market and retirement?
I like my two 5 year fixed index Annuities and my 4-CD ladder.. Keeps me from caring what the stock market does.. Debt free, drawing S.S. I got tired of the yo-yo markets. 2008 helped me figure this all out. I sure don't need to spend 70,000 a year either.
@@patrickr9606 depends actually. Sometimes they can be a helpful low risk income stream in retirement. ALL investments have pros and cons. Diversification is not just about buying different stocks and bonds.
This is an eye opening video. Most retirement planning videos look to either grow your portfolio or manage taxes, yet don't cover the actual approach to the withdrawal strategy and how the market affects it. This video, if I was within that planning session, would give me peace of mind.
Already went through that in 2008, the next one will not even be close.
Thank you for pointing out how uber conservative the 4% "rule" is.... its a corner case assuming withdrawals are on cruise control. If you just modulate spending when there's a down market, you can easily spend 6%+ the other 95% of the time.
I would be interested to see a video that describes the guardrails detail used in this video. I have played around with Vanguard's Dynamic Spending approach in my planning and may implement a similar tact for my withdrawal strategy.
Noted!
Your video helped to reinforce that following a sound plan that meets your goals, tweaking as the guardrails are hit, is the thing to do. Easily illustrated in hindsight. Though when one is in the middle of a market crash during retirement, with no idea how low it will go or long it will last, sticking to the plan takes discipline. Assuming I start with a good plan I just need to follow it and not shoot myself in the foot.
A broken clock is right twice a day. Eventually, there will be a recession... and most often, we won't know it till it's over.
Spot on and the timing couldn't be better, considering the prevailing concerns about the market and the number of people at or near retirement (on either side of it). Knowledge, plan and the discipline to stick to it trumps ignorance and our natural loss aversion bias. Eric nails it on knowledge ... smartest guy in the room.
Great video! being able to adjust your plan on the fly is mucho important!!
Thank you for your reassuring common sense approach. :)
Can you also run the same scenario starting from 2000? That would include 2 massive drawdowns. I tried many portfolios only funds like wellesley survives that period which is like 35% value stocks and 65% bonds.
Yes, I didn't highlight that in this video but that retiree would have seen one income raise and then no other adjustments. Would currently be sitting at an inflation adjusted balance of around $1.2M.
Thanks Eric, always good. If the market really does that bad, just do extra roth roll overs and make up on the lower taxes ? Win win?
Great video. I think though that if we have another 2008 things will be much worse for longer as the fed won't have either the political support or the resources to attack the problem as they did back then. So as a retiree we would need to take more drastic measures to stay afloat. Especially those newly retired and younger that 65.
I would LOVE to get a straightforward discussion on China’s move against the US dollar. I know the thread is REAL but what does it mean for the stock market and retirement?
Did John and Jane get a divorce? Who's Sally?
Great video!
Are the withdrawals inflation adjusted?
Yes
I like my two 5 year fixed index Annuities and my 4-CD ladder.. Keeps me from caring what the stock market does.. Debt free, drawing S.S. I got tired of the yo-yo markets. 2008 helped me figure this all out. I sure don't need to spend 70,000 a year either.
I do hope your annuity provider stays solvent.
Many annuities are insured by States
@@captsorghum they don't Lose money like the stock markets. No worries. My 7 year did great. I turned it into one of these 5 year annuities.
Annuities are not a good investment…expenses are way to high for an insurence company you give you back your own money!
@@patrickr9606 depends actually. Sometimes they can be a helpful low risk income stream in retirement. ALL investments have pros and cons. Diversification is not just about buying different stocks and bonds.
During crashes this severe the average person will probably sell out close to the bottom 😂.
Did I miss something, or are you pulling $11k from a $2million portfolio? Obviously that is minuscule
Per month.
Yes, per month
And this is why my wife and I are SWM clients for access to this much brainpower and those tools 🔧.
Worst wallpaper of all time 😉
😭