How to Manage Inflation During Retirement
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- Опубліковано 14 гру 2023
- While stock market returns get most of the attention when it comes to retirement portfolios, we should be equally concerned with inflation. In this video, I walk through how to incorporate inflation assumptions into a retirement plan using New Retirement planning software.
This is part of my New Retirement video series: • New Retirement Working...
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Video Resources
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New Retirement: go.robberger.com/new-retireme...
CPI Data: www.bls.gov/cpi/data.htm
CPI Average: ycharts.com/indicators/us_inf...
House Price Index Data: www.fhfa.gov/DataTools/Downlo...
Average House Appreciation: www.fhfa.gov/AboutUs/Reports/...
Case-Shiller Home Price Index: www.spglobal.com/spdji/en/ind...
Average Healthcare Inflation: ycharts.com/indicators/us_hea...
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.
New Retirement just keeps improving - more detailed analysis and flexibility in modeling! I have the subscription version and it's worth every penny! Thanks for showing the options Rob!
The Assumptions in any retirement planning tool are always the most critical and confusing part for users. Thanks for covering these in depth for NR.
Thank you Rob. I’m grateful for the time you spend sharing your info with us. It’s high quality educational content and I’m smarter with each one. You’re easy to follow and listen to. Cheers 🤓🍻
The main thing about New Retirement that I really, really dislike is that is doesn't allow you view the numbers in real (inflation-adjusted) terms. It just seems like such a simple and obvious feature to implement that people have been complaining about for years. Without that, you need to do the mental acrobatics of trying make sense of nominal dollar amounts decades in the future.
Big Fan of New Retirement. Appreciate the added insight into some of the assumption settings 🙂
Thank you, Rob, for the walk through on this topic. Great tool.
Excellent info and well presented. I’m glad I found this and will subscribe. Thank you!
Just took over my own portfolio management and found your channel. Great explanations of relevant topics but was hooked once I noticed your office decor. O-H!!!
Thanks for showing this. It's worth the small cost of having the paid version to be able to vary the parameters. A very important aspect of having a complete plan like this is to be able to check it a few times per year and do course corrections when needed to increase or decrease discretionary spending based on market conditions. No plan is a set and forget it deal unless you depend on a paid financial advisor to steer your retirement ship.
OUTSTANDING ... thank you SO MUCH for this video ... i LOVE NewRetirement but was always troubled with their inflation/(SS_cola) assumptions ... i have not seen anyone cover the relationship between the two as clearly as you have ... it bothered me that my approach differed from what i saw from so many different sources, but i went with what i believed to be correct ... and that approach is the same as what you explained ... that relationship has such a profound affect on a 30 year retirement ... i truly will sleep better as a result of this video ... THANK YOU ...
More deep dives into NR please Rob.
Great explanation - I got this program and will be plugging in my numbers in my time off next week
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Good info but I think a better title would have been How to model inflation in retirement. This was not what I expected.
Great to see NR avail in Canada one day. Edit: Any Canadians watching assume (much) higher cost for LT care esp for Dementia/Alzheimers. Wait for public ones sadly is 1-2 yrs. Thx Rob.
Hi Rob!
Sure wish installable software (on a PC) was still a thing that was being updated and revised. I would like this functionality in my Quicken software. I am against having all information about myself stored 'in the cloud'. So I'll muddle along with my own methods.
Thank you for this detailed information on using New Retirement. The information provided in the software isn’t as detailed.
This is so helpful. I didn't know anything about this software. Thank you.
I might consider the New Retirement tool if they had a monthly plan. I can't think of another subscription that makes you commit to a year at a time.
can you look into copilot money for budgeting?
I don’t feel using the broader historical market returns data is helpful in the seemingly unique predicament we are in with massive debt, inability to ever operate our government without large deficits and the interdependencies we have with a global supply chain. It would be great if the tool allowed a user to control external metrics to strictly limit the field of data used. Various ratios and percentages of economic data. Thanks for your videos.
Rob, I understand that New Retirement is a sponsor of your show and that is great. I am trying to use just the basic free version and it is in my option it is useless at best. I get that having to upgrade will allow for more features but there is not enough utility in the free version to gauge how good this might be. Are there other websites that you would recommend?
I was not impressed with the free NR, but heard too many people raving about the paid version, so I took the plunge. It's awesome! Two free weeks to give it a test drive.
When do you plan on going live again? I have an important question I would like to ask you regarding pension buybacks.
My three favorite channels: Rob Berger, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥
The internet troll is back.
@RobBerger I’m confused about your SS cost of living adjustment. Shouldn’t the pessimistic percentage be lower than the optimistic? Perhaps I misunderstood.
I agree. The optimistic is that the Gov increases the adjustment as high as possible, while the pessimistic lower value is if the Gov did not increase the adjustment as high. Therefore, it is a sort of inversely related to the inflation optimistic/pessimistic values just above in the user interface for NR.
This is my question as well. I thought pessimistic meant the lowest amount we can possibly receive, and optimistic meant a really nice increase.
The pessimistic assumption should be higher since it is based on the overall economic inflation rate. You would get a higher cost of living adjustment if inflation was higher. The way to think about it is that it is more pessimistic to project an economy with 4% inflation than one with 2%.
Hope that helps.
@@rickblaine8667 yes, I see what you're saying. I didn't realize that's what they meant. Makes sense. Thanks!
It would be nice to see calculations based on more realistic retirement savings. $1.25M for a single person at retirement is top 10%. Just a suggestion, great channel.
You can set the amount of your retirement savings within this tool. I think what you are saying is that Rob's demonstration was not applicable to a typical or average single person retiree. However, I think his goal was to show you the big impact of assumptions you may make about inflation and rates of return when planning your retirement. His goal was not to demonstrate what the typical single person retiree is going to experience.
The amount of savings is irrelevant. He’s showing you how to use the tool to make calculations. It doesn’t matter how much savings he’s using to explain it.
Another new retirement commercial
Yeah, getting old. I bought Projection Lab subscription based on his review video. And now all he talks about is New Retirement.
Inflation? VT and Gold.
I just signed up for New Retirement and the free version is garbage. You can't adjust any of the assumption numbers for instance.
I wonder if I'm the only one who, whenever Rob says "remember", flashes back to "if the women don't find you handsome, they should at least find you handy". something about the tone is a pretty close match. Probably only relevant to Canadians over 35.
It looks like New Retirement has went to locking the Returns input to only subscribers. This almost makes the tool unusable for anyone using the free version. They need revenue to run the business so I don't blame them, I just don't see myself using this tool going forward.
Let’s call a spade a spade . Ohtani probably established house wise in wherever he lives . Remember he probably didn’t want to relocate . The same contract was matched by the giants ! Ok
Judge used SF to raise the bar for NY to pay more . Ok it’s already been decided by these two guys . Period let’s stop tripping
_How to Manage Inflation During Retirement_
Withdraw 8% and hope for the best 👌👍
NR Commercial is the right decscription for this video. Hope you're going to return to true financial education rather than product pitches. Not a fan of this video.
We should probably keep in mind that Rod is providing guidance on the use of the software, which I would think a good portion of his audience has asked for. Though, I may agree that the title could be adjusted -- think it could be more accurately labeled as "How to use NR to model Inflation"