Confused. In the beginning Christine says this year withdrawl rates are higher at 3.8. Toward the end of the video it s mentioned that folks retiring this year are worse off. Can anyone explain?
The reason is that although the safe withdrawal rate is higher, the amount that you would have draw on will have decreased because of the market dropping roughly 20% as of the day I am writing this. So the actual amount you'd have to live on if you started drawing this year is smaller. Make sense?
@@denniskirschbaum9109 yes, but it wasn’t intuitive. Also being that the market is always fluctuating I still wonder how all of the sudden 3.3 is 3.8 now and who knows what next will bring? I thought the whole idea is that the withdrawl rate is the worse case scenario applicable to any year. These folks are changing it all the time it seems. Thanks !
Happy Holidays! It is a luck of the draw. Recommend people take the time to write their own Investment Policy Statement using the Morningstar template (as well as the Morningstar template for Retirement Withdrawals) for a proper perspective. Most people don't have the policy statements or just sign off on the version sold by a Financial Advisor. You might want a high withdrawal rate if you retire early, delay social security, and make roth conversions. Is your asset allocation 60/40 for inflation? Or is it 40/60 for sequence risk? Will it be 50/50 when you start social security? To be honest, I could not stomach the 20% drop this year, now I am mostly treasuries given the bear market and next year recession.
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Core inflation: inflation if you don’t eat or drive.
Retirement is finished for most people. They're saving and Investments don't come close to supporting their lifestyle
where is the link?
Bond returns of 5% and equity of 9% is encouraging IF real inflation drops below 9%! I hope your inflation predictions hold, that would be wonderful
Confused. In the beginning Christine says this year withdrawl rates are higher at 3.8. Toward the end of the video it s mentioned that folks retiring this year are worse off.
Can anyone explain?
The reason is that although the safe withdrawal rate is higher, the amount that you would have draw on will have decreased because of the market dropping roughly 20% as of the day I am writing this. So the actual amount you'd have to live on if you started drawing this year is smaller. Make sense?
@@denniskirschbaum9109 yes, but it wasn’t intuitive. Also being that the market is always fluctuating I still wonder how all of the sudden 3.3 is 3.8 now and who knows what next will bring? I thought the whole idea is that the withdrawl rate is the worse case scenario applicable to any year. These folks are changing it all the time it seems. Thanks !
Thank you.
The Long View is my Go To Podcast!
Happy Holidays! It is a luck of the draw. Recommend people take the time to write their own Investment Policy Statement using the Morningstar template (as well as the Morningstar template for Retirement Withdrawals) for a proper perspective. Most people don't have the policy statements or just sign off on the version sold by a Financial Advisor. You might want a high withdrawal rate if you retire early, delay social security, and make roth conversions. Is your asset allocation 60/40 for inflation? Or is it 40/60 for sequence risk? Will it be 50/50 when you start social security? To be honest, I could not stomach the 20% drop this year, now I am mostly treasuries given the bear market and next year recession.