5 Retirement Distribution Strategies: Which is Best? 📈

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5 Retirement Distribution Strategies: Which is Best? 📈

Рет қаралды 32,930

Күн бұрын

Is your retirement drawdown strategy optimized for your retirement goals and psychological makeup? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to www.safeguardinvest.com/contact.
Timestamps:
0:00 Which Retirement Drawdown Method is Best for You?
0:57 Strategy #1 - The Pro-Rata Method
4:27 Strategy #2 - The Bucket Method
8:27 Strategy #3 - Time Segmentation
12:01 Strategy #4 - Safety First Planning
16:32 Strategy #5 - The Glidepaths
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Пікірлер: 101

@SafeguardWealthManagement 11 ай бұрын

Part 2 was recently recorded. Check it out here - kzfaq.info/get/bejne/l7uRndl-2deZdok.html

@cathyn1608 11 ай бұрын

Yes, please! Part 2 is needed ❤

@ambition112 11 ай бұрын

0:00: 📊 The pro rata method is a common retirement drawdown strategy that involves withdrawing income from a portfolio in proportion to its growth and safety balance. 4:37: 📊 The bucket method is a strategy used by retirees to manage their investments and withdrawals during market fluctuations. 7:34: 📊 The video discusses different drawdown triggers and the time segmentation method for retirement planning, highlighting the drawbacks and benefits of each. 11:15: ✅ Different methods for managing income in retirement and the benefits of guaranteed income 14:54: 💰 Different retirement income strategies include guaranteed income, diversified portfolios, and reverse glide path. 18:34: 😌 The transition to retirement can be stressful, but having more safety and peace of mind can help alleviate the stress. Recap by Tammy AI

@terryadams1830 11 ай бұрын

Another great video! Thanks Eric! Please make the quantitative version of this video too!

@arymniak1 11 ай бұрын

Income investor strategy - draw out of your IRA as an income source. 1. cash bucket (1-2 years of living expenses), used for monthly income needs. 2. Income factory bucket (dividend paying holdings), reinvest dividends to build bigger income stream when market is down, feeds cash bucket when market is favorable to sell holding at a gain or turn off reinvestment option. Delay Social Security until 70 for the guaranteed return, no risk. Convert IRA to Roth when tax advantage is present up to next bracket. Use Non IRA savings as an emergency fund Have a HELOC line of credit for unplanned financial emergencies Run this from 60 to 70. After 70 start SSI and keep conversions from IRA to Roth going, plan your future RMD withdrawal Pay as little tax as possible each year Sleep well at night

@markaustin5269 11 ай бұрын

I plan on a 2 bucket approach. A cash bucket and a balanced fund(stocks and bonds in same bucket). When the fund is doing well take from the fund. When the fund isn't doing well take from cash. No need to jump back and forth between stocks and bonds in order to maintain a desired allocation. The balanced fund will do that for me.

@williammarton583 11 ай бұрын

This is basically a pro rata approach as the balanced fund maintains a fixed asset allocation. Only if your reserves are very high (e.g., 3+ years of spending) would you start to significantly deviate from a strict pro rata approach a la Bill Bengen. I would think that a smaller cash account and more conservative balanced fund would achieve a similar outcome. But your approach seems reasonable as long as your cash reserves are not too high as you will start to lose significant return to inflation.

@Riversauklabs 11 ай бұрын

Thanks for educating us . Part 2 please !

@user-jk9wo2yr3m 11 ай бұрын

Yes, would love to see Part 2. Thanks!

@ld5714 11 ай бұрын

Good material and discussion Eric. Please go forward with Part 2. The new office/studio looks great and appears to have turned out nicely for you. Larry Central Valley, Ca.

@lorie7969 11 ай бұрын

Definitely would like to see part2! Thanks

@max1492a 11 ай бұрын

Part 2 please. This is the best video I’ve seen EVER on different withdrawal strategies. Bar none!

@LivingRetirement 11 ай бұрын

Great video, and yes, please make part 2 of this.

@marisayanta4802 6 ай бұрын

Very informative. Thank you!

@MissDaisy559 11 ай бұрын

Such good info! Thank you!

@calrideryt 11 ай бұрын

Very good overview! Adding my request for a quantitative comparison too…let’s see part 2!

@DougASAP 11 ай бұрын

Great stuff, as always.. Thanks!

@jdavis6650 11 ай бұрын

Great vid. Let's see part 2.

@gstlb 4 ай бұрын

What a wonderful video. I especially appreciate your understanding that each approach has benefits and drawbacks.

@TMO111 11 ай бұрын

Loved the video!

@kazman442 11 ай бұрын

Thank you! Part 2 please :)

@danman6139 11 ай бұрын

Great tutorial. Part 2 would be much appreciated!

@garysmothers3234 11 ай бұрын

More would be good. Thanks

@bobackerman54 11 ай бұрын

Oh my goodness ... there is a lot of content here ... I plan on using bucket strategy and following KISS rule and retireat end of year ... but because I am a NERD I will study your info here and I certainly appreciate that you went to all the work you did in giving it to us ... THANK YOU !!!

@samhu3855 11 ай бұрын

Please record 2nd part! Love this video

@thomasjaszewski6898 11 ай бұрын

Keep going!

@dlg5485 11 ай бұрын

I'd love to see a part 2 delving into the performance numbers of each of these strategies. I like the reverse glide path method, but it does require a larger portfolio to provide adequate income in those early years. So you have to decide if you;re willing to keep working a bit longer to make that plan feasible.

@Nadex2015 11 ай бұрын

you can still make money after retirement..

@dlg5485 11 ай бұрын

@@Nadex2015 Of course you can, but a lot of people don't want to work after retiring. It kind of defeats the purpose if you ask me.

@dotted8- 11 ай бұрын

This is probably your best video in my opinion. Also looks like a new camera or lens and maybe some 4K; looks great!

@bryanpape1537 11 ай бұрын

Yes. Please do the part 2. Thx!

@dustunrosdail3583 11 ай бұрын

Like this, yes, looking forward to part 2.

@bigkahuna3085 11 ай бұрын

Great video, part 2 would be great. This is exactly what I am trying to do right now. Retirement 3 years out. Thank You

@rayhiggins7938 11 ай бұрын

Can't wait to see Part 2

@trackguy4038 11 ай бұрын

Yes! I do like your videos.

@domenickcalabrese3725 11 ай бұрын

This is the first video I’ve viewed that describes how annual portfolio rebalancing ("pro rata" method) may be a relatively simple strategy to manage sequence of returns risk. I would encourage posting the "Part 2" of this topic, since comparative performance of these methods is a key driver in deciding which to use.

@rayhiggins7938 9 ай бұрын

Love your Videos. Please provide a Part II video .

@dbclower 11 ай бұрын

we're gonna need a part two📩

@user-wm5cy9jj9x 11 ай бұрын

Would love to see the quantitative perspective - this was a very useful video - thanks.

@agrooters 11 ай бұрын

Yes part 2 plz!

@jsilverback3795 11 ай бұрын

Yes on Part 2. A little more emphasis on money that is still in IRA's and how to withdraw from them.

@StudyButte 11 ай бұрын

Great video - keep it up. The reverse allocation strategy has some resonance with me.

@williammarton583 11 ай бұрын

Part 2 would be a good addition, but I personally would be more interested in an in-depth presentation on time segmentation/asset liability matching. Specifically, how you could achieve this using funds rather than bond ladders. Most 401(k) plans include individual funds or age-based (life-cycle) funds; access to individual bonds is very limited. You would have to rollover the 401(k) to an IRA brokerage account to be able to construct a ladder. For various reasons, I would prefer not to do this.

@JimR-sb6yz 11 ай бұрын

Yes, part 2 please

@davidfolts5893 11 ай бұрын

Eric may be the tallest financial planner on KZfaq and the smartest, too!😀

@swright5690 11 ай бұрын

Please sir. Can I have more? One of your best vids Eric.🎉

@rustywrench2119 11 ай бұрын

Yes. Part 2 please

@SantaBarbaraAlberto 11 ай бұрын

Part 2, please...interesting.

@timwhaley3672 8 ай бұрын

Yes #2 video!

@gRatedContent 11 ай бұрын

Interesting video as always, thank you. Add one vote for a part 2. Again you discussed Roth conversions. Those for sure make sense in a LOT of situations. Perhaps this comment belongs in a video related to retirement before age 65, but I'd also be interested in your spin on early retirement without Roth conversions when Healthcare options are a concern. I've heard you mention Roth conversions many times, and I've seen lots of research focused on doing Roth conversions while income is low (before Medicare) at age 65, but rarely are folks discussing the massive subsidized ACA Healthcare option as an alternative. By keeping withdrawals low enough with no other income from a job or Roth conversions, a family of 4 can receive $2,500/month (or more) to cover health benefits! I'm curious why we wouldn't consider leaving the 401k alone and paying ZERO tax all while enjoying great Healthcare and early retirement. Thanks for your work, always clear in your topic of choice, great visuals, and your points are always backed up by solid research. Nice job.

@miatafunrun3078 11 ай бұрын

Yes for Part 2 Please.

@Blaidd101 11 ай бұрын

I would love to see a part 2 Budgeting and withdrawal strategies are my favorite money topics.

@sespiritu 11 ай бұрын

I'd love to see part 2

@Tatagua1366 11 ай бұрын

Would love to hear more. I’m a wade Pfau fan myself!

@bryanwhitton1784 11 ай бұрын

I commend you. My wife really likes you because you don't water down your content. We are a little beyond you need to watch your spending and save more. With this video you had her saying needs to watch it again so send her the link. We are both interested in the follow up Pt. 2 of this video. Thank you for your videos.

@SafeguardWealthManagement 11 ай бұрын

Thank you!

@jrace2718 10 ай бұрын

I would like to see part 2

@stephengoetze2651 11 ай бұрын

Please continue with Part 2

@johnkumpelis1121 11 ай бұрын

Part 2 please, excellent vid!😊

@fbcc1 11 ай бұрын

Yes to the sequel!

@ericprestegard7936 11 ай бұрын

Part 2 please!

@donofd9626 11 ай бұрын

More on reverse glide path!

@ericbauer3412 11 ай бұрын

Need part 2 with quantitative analysis!

@TraceElements-ti5ke 11 ай бұрын

Yes, I need data!

@bernhardluscher 7 ай бұрын

Great video - thanks!. I have been practicing a form of a reverse glide path for more than ten years and this is the first time I hear somebody in fact agreeing and recommending this path. I plan to live off the save portion of my portfolio (guaranteed funds in a 403B account) during the first ten years and thereby gradually increase my stock portfolio from 70% to 100%. At the same time I'm in the process of Roth converting much of my stock portion of my 403B account, including all the money dedicated to my kids. I would love to hear a more technical version of this video

@jaynelson8304 11 ай бұрын

Please do part two

@seanbinkoski1919 11 ай бұрын

Please add part 2 on the quantitative analysis

@scottmanicor8540 11 ай бұрын

Part 2 please.

@johngiesbers9811 11 ай бұрын

My bucket #1 is 3 years of cash with a CD ladder (5.5% rate). My bucket #2 is 3 years of bonds. Bucket is #3 100% stock funds. I can withstand years of a down market with out drawing on stocks. When the market recovers I can refill my buckets. I also have a bucket #4 in CDs/ibonds that covers onetime expenses. (need another car or new refrigerator or unexpected medical expense)

@swright5690 11 ай бұрын

Nice new office.

@bassnote61 11 ай бұрын

Part 2!

@TravelingtheWorld96 11 ай бұрын

How about a video on the RMD method? Definitely a part 2 for certain.

@jamesmorris913 2 ай бұрын

Time segmentation/ liability matching, is a NO BRAINER, for me..as you said, pro-rata has delivered the largest end-result balances, so far..emphasis, on SO FAR. But, as you adroirtly point-out, time sementation/liability matching, delivers PEACE OF MIND and predictability, more so than pro-rata.

@CaveArnold 11 ай бұрын

I would also appreciate the quantitative analysis of each. I will be retiring at the end of 2023 and have researched the Guyton - Klinger withdrawal strategy. I have a spreadsheet that I have used to back test using my last five years actual returns and it seems to work well. I plan to use the GK withdrawal strategy. I was wondering if you excluded it from the list of drawdown strategies because it is more complicated to implement? I am working on a way to automate my withdrawals as much as possible and guardrails seems to work well in practice. I always like to see the alternatives. Great educational videos! 🙂 “Plans are useless, but planning is indispensable.” - Dwight D. Eisenhower 🙂

@eikoGoldstein 11 ай бұрын

Liability matching was incomprehensible. “ assigning the highest yield to each dollar….? This deserves some explication. Thanks.

@dancasey9660 11 ай бұрын

Reverse glide path while performing Roth Conversions seems like a way to go.

@billgrabbe9992 11 ай бұрын

It seems like Income Segmentation would work well for larger portfolios. If the bonds, T bills and CD's set aside for annual needs are less than 30% of a 70/30 portfolio, rebalancing would cover longer term needs in "up" years and in "down years", the money already set aside for budgeted needs would not be used for rebalancing,, even if that reduces the percentage of equities held. Does this make sense?

@corcorandm 11 ай бұрын

I think ERNs reverse glidepath would be good for a Q.A. i wonder if there is an etf/mutual fund that accomplishes this... Ive played with the tool provided at ERN but an analyst i am not...

@joramster6001 11 ай бұрын

Yes part 2

@joramster6001 11 ай бұрын

Data beats opinions

@paulturner4419 11 ай бұрын

If you take SS early then doesn’t it reduce sequence risk?

@enuffalready1313 11 ай бұрын

One vote for the quantitative video also.

@agnesriverby 11 ай бұрын

What you're calling "time segmentation" makes a lot of sense to me and I would like to study it further. However, if I look up "time segmentation" everything I'm seeing says it's just another name for the bucket strategy. Is there another name for this that might be more commonly used? How can I get more information? Wait, nevermind. You said in the video is was also called "liability matching". Off to do more research!

@Kep19901 11 ай бұрын

Do you play tennis/are a lefty? That left bicep, compared to the right bicep, is huge 💪

@SafeguardWealthManagement 11 ай бұрын

Professional arm wrestler 😉

@Kep19901 11 ай бұрын

@@SafeguardWealthManagement good.

@Austin-fc5gs 11 ай бұрын

part 2 :D

@Kep19901 11 ай бұрын

Hey, some constructive criticism. Theres seems to be an echo/audio problem. Hope that helped.

@VideoRansack 8 ай бұрын

Assuming withdrawing from a tax-advanaged account, I don't see with the pro rata method how the proportion of the withdrawal matters. If one rebalances after the withdrawal, aren't the balances set based on the portfolio proportion percentages?

@chrisp3913 9 ай бұрын

Ok, so,when rebalancing with “stocks”. What if you have 20 individual stocks and some are winners and some are losers. Do you take equal % of all. Or, do you only sell the winners or only sell the losers?

@jeffh9071 11 ай бұрын

I've never heard of pro-rata but it sounds similar to the withdraw and rebalance strategy. I think it's also called "total return". Rather than blindly withdrawing per your AA ratio each time then re-balancing only once at the end of the year, you rebalance during each withdrawal. If stocks are down you naturally sell more bonds and vice versa. Less sting so easier to stick with and I bet better performance than the pro-rata method. What say you Eric?

@cgmoog 11 ай бұрын

Wrote my reply before I saw your comment. I think this is the easiest to understand, implement and provides good returns. I gave an example of the first months withdrawals.

@cgmoog 11 ай бұрын

What about modifying the ProRata method. With a 60/40 portfolio each month calculate the amount of bonds and stocks needed to liquidate to provide the monthly income target while ending with a 60/40 mix. In effect you are rebalancing each month by selling a larger amount of the winning investment in order to meet income needs. Less psychological issues of buying more stock during down markets. Less say a $1M portfolio (60/40) needs to provide $5000/month (5% draw down) and shows a 1% gain in the first month of retirement (12.7% annual return) on the stock side and the bond side grows by 0.4% (4.9% annual return). You would sell $26,040 worth of stock, buy $21,040 worth of bonds and take $5000 worth of income. If instead the stock side went down by 1% while the bonds were up by 0.4%, you would sell $26,960 worth of bonds, buy $21,960 worth of stock and take your $5000 worth of income.

@williamhigbie3504 2 ай бұрын

🎯 Key points for quick navigation: Retirement drawdown strategies determine how you withdraw funds from investments during retirement. Pro rata method involves withdrawing income in a balanced manner from different investment sources. Bucket method divides investments into short, medium, and long-term buckets for withdrawal. Time segmentation matches investments to specific income needs each year, providing personalized strategy. Safety first method focuses on guaranteeing income through annuities and maximizing Social Security. Glide path method involves adjusting asset allocation as you age, with reverse glide path showing potential benefits. Behavioral factors play a significant role in choosing and sticking to a retirement drawdown strategy. Made with HARPA AI

@peterholmes2089 11 ай бұрын

I would like to get more of your thoughts on annuities as a retirement investment. On the one hand a 6.5% yield on an income annuity sounds like an amazing risk free return. On the other hand, I struggle with the thought of giving someone a bunch of money that I will never get back. Also, inflation could make the income nearly worthless in 20 years from now.

@davidk6498 11 ай бұрын

I with you on this Peter there are very few annuities that benefit the investor there are loaded with surrender fees if you try to get out and a lot of money goes straight to the the broker and salesman of these products that being said there may be a small segment of annuities that meet a certain investor situation that it may be of benefit you would really have to do a lot of researching to figure this out 99 percent probably stay away from😢