Thanks, Safeguard Wealth Management, for the abundance of great content you have produced in 2023. Learning has never been so fun!
@michaelratchford95087 күн бұрын
Agree. I have a much better grasp of financial concepts after watching Eric’s videos.
@mitchbandalan94508 ай бұрын
I have to admit, your channel goes into much more detail and analysis than most. Very, very good information and knowledge on the topic. You mentioned some terms I never heard or considered (hence why I am subscribed). Excellent work.
@ericgold38405 күн бұрын
The RMD withdrawal rate strategy for those with a non-COL adjusted pension strikes me as a smart way to mitigate the sequence of returns risk while maximizing both early and maximal lifetime withdrawal.
@RobertGreenwaltIII7 ай бұрын
I think this the only youtube channel that has me taking notes. Thanks for all the thoughful info.
@ZelenoJabko6 ай бұрын
you write this on every channel. I can see your comment history.
@RobertGreenwaltIII6 ай бұрын
@@ZelenoJabko ? Citation needed - do you have a url to another vid where I've said this?
@randolphh80058 ай бұрын
Yes as several on here note, these wirhdrawal strategies are often not real world. If you retire before drawing SS, your needs will vary tremendously over time. We are in that situation. Wife started her SS early at 63, I’m waiting till 70. We are using the portfolio to bridge to both payments. After that our “needed” portfolio income will drop to near zero. Before that it is much higher than 4%. I would say the 30 year withdrawal strategies described, actually apply to a minority of retirees.
@jmc80767 ай бұрын
He says near end the numbers need to be run on individual basis to incl SS.
@AllenKrell8 ай бұрын
Need more videos on disconnecting Social Security from withdrawal. For example, retiring at 65 but not collecting SS until 70. This heavily front loads the withdrawals, but makes a lot of sense.
@ItsEverythingElse8 ай бұрын
No, it really doesn't, for most people.
@markbernhardt62818 ай бұрын
@@ItsEverythingElse Because you don't understand why? If you are married the higher earner should never take prior to full retirement age (FRA) because if you take it sooner, the survivor benefit will be locked in at the lower payment amount. It's ok to wait in that case. The lower earner can go ahead and take it at 62 without worrying about it.
@rayzerot8 ай бұрын
@@ItsEverythingElseI don't know a single investor who would turn down *guaranteed* 8% *inflation adjusted* returns that are *tax advantaged* when you withdraw them as income. It's an investors wet-dream The only reason to take it early is if you're dying or if your spouse had a higher income than you and taking spousal benefits makes you come out ahead
@larryjones97738 ай бұрын
@@rayzerot I'm probably an exception, as I'm 100% stock with 63% in my Roth. It's somewhat of a close call, but the tax advantaged Roth tells me to draw SS at 65. My avoided tax rate on Roth withdrawals is 45%.
@randolphh80057 ай бұрын
Never and always are poor words in discussing retirement strategies. Too many exceptions! In general less wealthy people with no other income streams other than a portfolio benefit by at least one person delaying substantially. Wealthy people can do what they want, but with high life expectancy even they can wait a couple years. We have a moderate portfolio, both retired, no debt, wife took at 63, I will wait till 70, when our combined SS income will be over $7000 in current dollars. Consequently starting at age 70, our portfolio is strictly for discretionary spending. We will spend down some to get there, but still have plenty. We plan to spend much of it by age 85(20 years) so can use a much higher withdrawal rate. We have our home to cover LTC. If market returns are poor we simply take cheaper vacations. Really no chance of running out of money with the SS. To protect the widowed spouse we have some longevity annuities kicking in at 83-85, so she would get an inflation adjusted $4500 survivor check, plus the equivalent of $1500 in annuities, for an inflation adjusted income of $6000. That is the worst case financial outcome. Death and Health remain the wild cards for which we have minimal control!. Don’t delay enjoying your years!
@Donkeyearsa5 ай бұрын
My strategy is to have everything in the S&P 500 low fee mutual fund minus 30 months of income which would be in an ultra safe money market fund. The idea is to draw from the S&P 500 fund every month using the 4% rule unless the market goes down where the 30 months of cash comes in. I can survive 30 months of down returns. If I have an ultra bumper year in the S&P 500 then I would expend the savings up to 98 months. If I have a really bad set of years early on I could always return to work. Though I have not started it yet as I am not exactly ready to retire as I feel I'm to young to retire just yet even though I could financially do so if I cut some spending.
@markb16975 ай бұрын
I suggest you consider using something other than the S&P 500 fund, or at least augment it with other funds. Note that the S&P 500 is large-cap companies only and heavily weighted by a few Technology companies. When it does well, that's nice. But when it does not do well, you would benefit from having other funds invested in small cap and International companies (maybe 15-20% in each).
@xporkrindАй бұрын
Another outstanding video. Some of the best and most helpful retirement analysis on KZfaq.
@J-D2487 ай бұрын
Great video! So many people are too rigid about the 4% rule as if that's the only way it works.
@willlsmith80638 ай бұрын
I finally understand the 4% rule.......great video thanks
@mitchbandalan94508 ай бұрын
Same. I thought it was a straight 4% annually without adjustments.
@dlg54858 ай бұрын
Excellent content. I have long believed that the guardrails method is the gold standard of withdrawal strategies. It is especially attractive for people like me who have a higher risk tolerance and plan to maintain a higher than average allocation to stocks throughout retirement. It allows for significantly higher spending throughout retirement and it can also provide a decent ending balance for legacy purposes, if that's your goal.
@jeanrogers79176 ай бұрын
Thank you for this clear presentation!!
@wpgwaldo3 ай бұрын
This video is one of my personal favourites in explaining the different strategies. Personally I have decided to forgo positive inflation adjustments for now. I will be 66 soon and my government benefits plus a modest pension take care of all of my bills, not including vacations. I am Canadian and am trying to keep my withdrawals to an amount that will avoid clawbacks on my age amount deduction. I have the Canadian version of a Roth to draw from if I need extra cash for unforeseen costs. Furnace, car, etc….
@jsandppr8 ай бұрын
Would have been good to have a link to the paper the video is based on
@neilcook16525 ай бұрын
Love the detail, clarity and relevance of your content, thank you
@robbieb2011Ай бұрын
I worked on Wall Street for most of my career. I withdraw from my retirement similar to how I invested. To invest I used a weighted dollar cost average method that I invented back in the early 2000s. I put in the same amount/% each pay check but on that pay check if the S&P was below the 200 day moving average but above the 350 day MA I put an extra x%. If below 350 day but above 500 day I put in an extra x%. I guard against a massive bear market so have scenarios when I can put addirional funds all yhe way to the 10,000 day MA and still have dry powder. I beat the S&P the last 20 years by 15% doing this. That was investing..switching gears to withdrawals during retirement. I use same guard rails. If price gets below 200 day MA I never sell stocks. Instead I sell fixed income portion. If the stock market rallies hard,well above my expectations I enter covered calls OTM and bank premium, free cash, and if my options get exercised...fine with me since I was not budgeting in that extreme market rally and am getting called at a higher amount I would have sold a year ago.
@vincentf.23176 ай бұрын
Very Useful Content. Thank You.
@ld57148 ай бұрын
Thanks Eric for another great video. I'll watch it a few times so I can digest it all. Thanks for sharing this informaiton and explanations. Larry, Central Valley, Ca.
@SuzanneU8 ай бұрын
I've chosen to do soft retirement, working 12 hours a week.
@rayzerot8 ай бұрын
That's a neat term for that. Do you do 2 days working 6 hours?
@jamesmorris9138 ай бұрын
The 100% T.I.P.S. ladder strategy which you mention, saying that you would be left with NOTHING at the end of 30 yrs, is only valid if you CONSUME all of the proceeds from the 30yrs of withdrawls. Most people won't do that, however; since the generally have other income sources..Social Security and pensions, specifically.
@Riggsnic_co8 ай бұрын
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
@hermanramos70928 ай бұрын
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
@martingiavarini8 ай бұрын
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
@bob.weaver728 ай бұрын
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
@martingiavarini8 ай бұрын
My Financial adviser is ‘’'Natalie Lynn Fisk ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
@bob.weaver728 ай бұрын
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
@Beadgcfb4 ай бұрын
When spending is adjusted for inflation or market conditions, how exactly are those conditions determined and how far forward is the spending adjustment for?
@bluesmiller70818 ай бұрын
I've seen the RMD withdrawal method averaged over 3 yrs to reduce the volatility and it becomes a more reasonable approach.
@SafeguardWealthManagement8 ай бұрын
3 year average of portfolio value? Interesting wrinkle to the approach
@DP-ol5uv8 ай бұрын
Purchase a deferred annuity for guaranteed target income with no market risk. A joint lifetime annuity provided guaranteed income for both you and your spouse. No market risk exposure.
@SafeguardWealthManagement8 ай бұрын
Correct. Keep in mind the inflation risk you open yourself up to, however. This inflation risk is mitigated somewhat in the 'actual spending' situation but still something worth noting.
@MichaelToub5 ай бұрын
Great Video!
@teams33454 ай бұрын
I just withdraw 3.5% and stick to it. I don’t increase for inflation. I will just spend less when it starts getting tight. I don’t think that will happen for quite some time.
@fredmorgan9968 ай бұрын
You're absolutely right! You make a very valid point when you stated that the marginal utility factor needs to be adding to the calculations somehow.
@flyguy4372 ай бұрын
I found myself constantly reviewing how you came up with numbers on the rmd method, guardrail and actual spending. They weren't clear (I was not alone as you can tell by "most replayed"). I never could figure out the last, how 3.25 inflation minus 1.9 added to 50,000 equalled 50,650 etc...or the next year. Details were left out.
@markb16975 ай бұрын
I really appreciate all of your great videos, which are extremely well done. For this one in particular, I like your comments at the end about combining them into a variable strategy - such as Guardrails and the Smile Approach. I totally buy into the idea of spending more in our "Go Go" years and then slowing down as we get older in retirement. My question for you - in the Smile approach, you show different reductions during each decade, but I challenge a reduction of spending during the first decade. I suggest that there should be no reduction until the 2nd decade and then reducing more during later decades.
@SafeguardWealthManagement5 ай бұрын
Most of the smile research was done by David Blanchett, PhD, CFA, CFP. I believe compiled form a host of government data. My opinion is that it should be more of the default/baseline rather than used for every single plan. Preferences and personal situations will adjust the smile from person to person. So depending on your situation, it may be completely logical to forgo reductions until the 2nd decade. Health, starting retirement age, composition of spending, etc. can all be a major factor here.
@billszymanski48447 ай бұрын
very helful. very well done. congrats!
@LikeitnowLoveitlater8 ай бұрын
Sir you are certainly very knowledgeable. However, in my opinion, I wish your analysis contained more mights, maybes, coulds, and shoulds instead of wills. The Monte Carlo gamble scenarios should be presented with a caveat when explaining so many complicated strategies. This analysis is quite scientific but that should not mislead consumers into thinking the outcomes are certainties. Keep up the good work!
@maxpayne74198 ай бұрын
These methods are best used as a rule of thumb. In reality, every retiree needs to work with a financial planner and use financial planning software to actually model each year of their retirement income (all income streams including social security) and spending. It is critical to do this and have a detailed forecast and plan.
@randolphh80058 ай бұрын
Great point, we did that, first on a spreadsheet and then with a retirement planning software. We will have drastically different needs as best as we can predict over the next 30 plus years. My heavily researched spreadsheets were quite helpful, and when I plugged it all into a good software program it added a bit and confirmed a lot. We will end up using a dynamic and variable approach year to year due to multiple anticipated changes.
@markb16975 ай бұрын
I agree. Our retirement spending will be very, very variable. Base expenses are mostly stable, but lots of large expenditures in different years (travel, replacement car, home improvement, gifts, etc). These need to be factored in and adjusted at least annually. For do-it-yourselfers, NewRetirement software is a very good option.
@JoseRodriguez-yr9uv8 ай бұрын
Very. Valuable.
@shoofly5294 ай бұрын
At 11:37 when the million dollar portfolio in Year 1 increases 30% to 1.3M in Year 2?? I assume you would have to be totally invested in the stock market AND it was a banner year for a 30% portfolio increase. I must be missing something.
@SafeguardWealthManagement4 ай бұрын
It's just an example. If you have 20% bands around the starting withdrawal rate, you'd need to see a big change in portfolio value from one year to the next to hit it. More likely they would hit that band over the span of multiple years but trying to show that in an illustration form would lead to more complexity than a 1 year example.
@shoofly5294 ай бұрын
@@SafeguardWealthManagement Thank you for the explanation.
@arisgod27498 ай бұрын
This is all when and good. I got a much simpler rule. Forget bonds, buy 10 Kings and aristocrat stocks, and live off the dividends. Companies such as Coke, J&J and PG have paid and raised their dividends for decades. If you can live off the dividends of such companies then you are good to go.
@JESK55Ай бұрын
Brilliant! Forget bonds! Dividend kings or VYM are far better.
@jan31958 ай бұрын
Great information, Eric - as usual. Thank you for sharing this!
@Random-yq1wu8 ай бұрын
I have concluded that 4% is best & simplest method.
@dforrest45037 ай бұрын
Simplest? Yes. Best? Doubtful. But if it makes sense to you, then it may be the best to you.
@markb16975 ай бұрын
@@dforrest4503 Agreed. If anyone wants to follow the 4% rule, at least revisit it each year and probably adjust. Kind of like the Guardrails approach...
@resterAnonyme8 ай бұрын
What would be the best strategy when you have an inflation adjusted pensions that covers all of your daily living costs that would not require a distribution during down markets. During up markets we could enjoy a fairly high w/d rate. As well as accounting for an early retirement of 50/49?
@markb16975 ай бұрын
That's a fabulous position to be in. I would suggest a variable Time-Segmentation approach where you carve out specific amounts for later goals (legacy, Aging care, LTC maybe), and then spend the rest on "variable expenses, aka "Fun"
@atkim1228 ай бұрын
Question: I learned from your previous video that if I Roth convert in December, the IRS would want estimated taxes from that sum paid throughout that year (because they don't know when I converted) and penalize you if you didn't. But could the same rule benefit us? If we Roth convert in January instead, can I spread out paying taxes on that to four payments throughout that year, and not have to pay all of it lump sum in January?
@larryjones97738 ай бұрын
Based on my experience (but I can't be certain), as long as we pay estimated taxes by January 15 of the following year, the IRS won't bother us. Thus, if you convert in January of 2024, you have until January 15 of 2025 to pay estimated taxes on that conversion. This assumes you've paid timely estimated taxes on other taxable income.
@atkim1228 ай бұрын
@@larryjones9773 Thank you.
@randolphh80058 ай бұрын
For self employment income you need to make payments approximately quarterly throughput the year. In theory you can be penalized if not paying enough each quarter. Not sure how it pertains to unearned income.
@Random-ld6wg8 ай бұрын
or pay as you go. i have done conversions in feb '23 and paid 4/15. did conversions july '23 paid taxes 9/15, doing conversions Sept/ Nov/ December and i will pay the taxes on those on 1/15/24. why so many conversions instead of 1 or 2? i was spreading my tax burden over the year and i was deciding how much i can convert( initially up to 12% and then to max out 22% instead). during those quarterly payments i have been paying taxes on my LTCGs for the quarter as well and for the non qualified dividends i get from money markets. i am living on my taxable bucket at this time. if you owed tax on the last tax return, i think you are required to have 110% of the total tax paid out in quarterly payments the next year.
@joegambs45058 ай бұрын
You will be penalized if the amount earned/distributed in the Qtr. is not matched by Est Quarterly Tax Pmts. Peoples Democratic Republic of California requires greater pmts. in first few Qtrs. and has different deadlines.
@ericbauer34128 ай бұрын
Great summary / update. Nice job contrasting the associated characteristics with each tactic.
@mikeo25246 ай бұрын
Shouldn't you be able to combine the Real Spending method and Guard Rails? That should give you the best possible outcome?
@SafeguardWealthManagement6 ай бұрын
Correct, this is generally our preferred method
@mikeo25246 ай бұрын
Great- I just wanted to make sure I was understanding. I believe those two methods would be 100% additive in allowing for a greater withdrawal rate. So, maybe if we had another entry in your chart, it would a bit greater than a 6% withdrawal rate. This could be tested with MonteCarlo simulation but I've never seen any studies on that anywhere.
@wagon90825 күн бұрын
Good video
@andrewroth91758 ай бұрын
How does all this work if you retire at 61? MFJ have a large Roth account and pension at 65 and will take SS at 70. Planning on using my pre tax from 61 thru 70. Then I’m good with SS, Modest pension and use of Roth account to supplement our income.
@smileyblair33216 ай бұрын
I would love to see the 4% variation where you take 4% of the account value each year no matter the total account value.
@stevejacobs28768 ай бұрын
For the RMD Table Based strategy, why are you using the RMD SLE table for beneficiaries rather than the RMD ULE table that would apply to those who draw from their own IRA/401K ?
@SafeguardWealthManagement8 ай бұрын
Single Life Expectancy was the approach cited in this specific Morningstar paper.
@jack915226 ай бұрын
If you plot out on a spreadsheet a fixed 8% return, a 10% bump doesn’t seem to be enough because the RoR is too high. I wonder if there’s a way to scale the bump to the RoR?
@mattmcmullen8244Ай бұрын
Every time you say “strategy” I think you’re saying “tragedy,” so it sounds like “I’m going to talk about 6 retirement tragedies today,” lol. Just teasing, good videos!
@Random-ld6wg8 ай бұрын
i am currently underspending my portfolio as i retired at 55 and now at 57 but even before retirement, the guyton klinger guardrails appealed to me with the initial draw rate of 5.2 so i will likely change later. your portfolio "doesn't know" when you retired so applying a different withdrawal strategy based on how the portfolio is doing at the time of the change (might be higher or lower) and a few years along retirement shouldn't affect the probabilites of success.
@jonstoehr1758 ай бұрын
"The 4% rule is dead." Then a miracle occurs-passage of time. LOL.
@kcnicely8 ай бұрын
The biggest problem with all these withdrawal methods is that they don't take into account the income needs after social security is taken into account. I would like to see a plan that takes on the needed income after social security is taken out and includes guard rails as well.
@dlg54858 ай бұрын
It's actually not that complicated. All you have to do is think of starting SS as the start of a 'new retirement' and start with a new beginning withdrawal that takes SS into account. From that point the rules are the same as they were before SS.
@i-postm49438 ай бұрын
Treat SS as a fixed income fund with CO LA.
@jmc80767 ай бұрын
He says near end the numbers need to be run on individual basis to incl SS.
@rootedrotor5255 ай бұрын
use cfiresim. You can bake in SS, Pension, etc.
@markb16975 ай бұрын
Not exactly true. The Withdrawal strategies are for the money you need "after" you account for income sources (like Social Security, pensions, and annuities). If you need to spend more, that is where these withdrawal strategies come into play.
@jeffdannels46208 ай бұрын
Great information. I was wondering how RMD were calculated.
@kikilynn11674 ай бұрын
He explains it in the video.
@Amsepamse5 ай бұрын
4% rule: if you retired 25 years ago and withdrew according to the 4% rule, your money runs out this year. If you had a 60/40 portfolio your money ran out in 2016. Why is that? Because a 'monte carlo' simulation will produce a couple of circumstances in extreme end that never happens; all the negative years in the past 120 years occurring together followed by neutral years and all the positive years when the 4% is larger than the yield of the good years. The monte carlo simulation will over represent the value of non-risk and under represent the value of market recovery. To make the funds last, reduce withdrawal when tbe market has declined and compensate when the market has gone up.
@nlmytube8 ай бұрын
In fact, most people DO need more money.
@jps01177 ай бұрын
I'm glad someone said this.
@markkeller93785 ай бұрын
All of this is great, but everything depends on your expenses. Expenses drop dramatically over a 30yr at retirement. 60-70 strong spend…70-80 greatly reduced spend 80+ sharply reduced spend. If you have no debt, combined with SS income, most people don’t need anywhere near 8% return to live. 4%, which you can get in government bonds (no tax) out to 20 years pay more than that now. So you take your 4% and you lose nothing. But what about inflation!!! Doesnt matter as your SS is protected with COLA and your drop in expenses will erase almost any inflation rate. Besides, take a look at mortality charts. @ age 65, 50% of us will be gone by the time we hit 80 and 90% by 90.
@tlar12727 ай бұрын
Seems like a video for people already familiar with these strategies. A comprehensive video explaining how each strategy works and how the numbers are derived might be more educational
@Nicolewhit8 ай бұрын
How can I go about investing in the crypto and stock market? Real estate sounds good too but it's all boils down to the right investment plan.
@LJ9089-r8w8 ай бұрын
Investing in crypto is a good idea and a good trading system will put you through many days of success
@patrickr96068 ай бұрын
IT ALL depends on your age, risk tollerance, and how your portfolio is allocated. Stock market and ETF’s yes! I’m 65% equities and ZERO IN CRYPTO!
@christopherstewart98748 ай бұрын
First, you must understand that crypto is NOT investing. It is pure speculation. No advisor, no guru, no trading system will change that.
@3namechangezalowdevry90day78 ай бұрын
Crypto is fiat AF
@paragon_228 ай бұрын
What do you think about starting with the Guardrails for the "go go" years then switching to RMD method by the "slow go" or "no go" years? Perhaps the trigger would be when/if the RMD withdrawal exceeds the Guardrails withdrawal for the remaining balance. This way we could spend more when younger but also spend most of our savings (if our goal is not a high ending balance).
@stopit98448 ай бұрын
I live in Michigan and i am looking for a financial advisor. I left a message at your office. I would like to see if you can become both myself and fiancée financial advisor.
@chessdad1828 ай бұрын
I'm struggling to get my spending to 3 percent. LOL.
@larryjones97738 ай бұрын
same.
@bobdrawbaugh42077 ай бұрын
Didn’t Morningstar say the 4% rule was died? Didn’t they say it was now the 3% rule? I think we give Morningstar to much credit.
@markb16975 ай бұрын
That was when interest rates were near zero. It will vary from year to year.
@donaldlyons173 ай бұрын
@@markb1697 Which is really interesting because people online don't seem to adjust stuff in their models... but for real that makes no sense!!!! Why not adjust stuff and see how stuff works out?
@mjs28s8 ай бұрын
Why not just build a portfolio of ETFs and stocks that have a history of increasing dividends over time at or above the rate of inflation (on average) that also pays out 5% first year base on initial balance. Then, take only 4% to 4.5% and reinvest the rest thereby slightly increasing the rate at which you income stream grows and making it so, less you pick a number of bad investments, that you never touch principal and that you will always be able to live a higher lifestyle every year going forward while never running out of money. I don't ever see any channel talking about that type of approach.
@markb16975 ай бұрын
Living on Dividend income is an idea from way back. There are videos and articles available to look at the Pros and Cons of this approach. That said, I challenge why you do not want to dip into the Principal? You worked your entire career to save money for retirement and spending principal for travel, adventure, charity, etc. is why you saved it. If you agree, these methods help you spend down principal but not run out of money before you run out of life. If you want to leave a legacy, you can carve out an amount but you will likely die with a decent amount of principal.
@relaxo916x8 ай бұрын
This might seem like an odd request, but tired old eyes would really prefer white text on black background. Your slides are all black text on glaring white background. It hurts older eyes like those of retirees and potential retirees. You know, your target audience.
@SafeguardWealthManagement8 ай бұрын
Interesting, all of the research I've read on the topic points to readability being far better with dark on white. I'll review and consider adjusting
@relaxo916x8 ай бұрын
@@SafeguardWealthManagement Thanks for replying. I read up a bit more myself on the topic. It seems there are people on both camps when it comes to this topic. Personally, I prefer a dark background with lighter text because it's easier on my eyes, but apparently that is not a universal preference. So please don't make any changes on my account, lol.
@jacobburns93436 ай бұрын
Watch in highest video resolution possible - click the gear next to CC. KZfaq might be automatically showing you the video in a lower resolution.
@ahndeux7 ай бұрын
There is a better strategy. Invest in passive income so that when you retire, you still get an income stream. You're technically not "fully retired" and draining your savings with a passive income stream. If you couple that with social security and pension (if you have that), you will be fine. The more passive income you get, the better you will survive retirement. My goal is to take out 2% at most and I already reached that goal at 51. The passive income is the most important part of my investment portfolio. Some of these investments are in real estate, so the capital gains also help balance out any potential future inflation problems.
@VoltLover008 ай бұрын
Percentage based plans are simplified to the point of uselessness.
@markbernhardt62818 ай бұрын
I think it's BS that the day you retire sets your income for life. If your portfolio climbs 20% in one year, you would have lots more to spend for the rest of your life. Why can't the Monte Carlo analysis be run every December to determine how much money you can draw on Jan 1 to put in your 'life' account to put you into the 90% category?
@larryjones97738 ай бұрын
Monte Carlo has a lot of flaws. I've seen it scare people and they move all their money to government bonds and end up with anemic returns. Very sad.
@markb16975 ай бұрын
Agreed, which is why the 4% rule should not be followed without adjustments. A retirement plan cannot be considered a one and done -- it needs to be reevaluated every year and adjusted.
@pauld96538 ай бұрын
Why not add another one just for fun.. the 1/N distribution.. N=number of years left in the plan. So in year one you take 1/30th of the value, next yr 1/29th of account value and so on... If you want to leave a legacy.. then take a separate amount and don't touch it for 30 yrs... for example of 1 million to start.. you take 10% or 100,000 for the heirs.. put it in a separate account.. 100% stocks and never touch it, hopefully in a taxable account because gains will be tax free to them. Now take the balance of 900k and withdraw 1/30th the first yr.. 1/29th the second.. and so on... The 100k you left for the kids will grow to 1 million dollars at 8% for 30 years.. amazing.
@markb16975 ай бұрын
Nice and easy, but what happens if you live for longer than 30 years. Will your Social Security be enough to live on?
@DeanMerrifield6 ай бұрын
Be carefull with your vocabulary....large growth and large cap are not the same.