3 Retirement Drawdown Strategies TESTED || Examples and FREE DOWNLOAD

[@2GoRoam]

Hope you get something from this video. Producing the spreadsheet to back this up was a bit of work so please do download and see how it works for you. If this is your first time here, you should go watch this video which was the start of this series : kzbin.info/www/bejne/mKe7Y2ugnLlgd9E

[@Joe-lb8qn]

A million points to you for drawing attention to these scammers who post in feeds like yours . So few even mention them let alone bother to remove them.

[@reveandrobl4906]

Another excellent resource Neil (and Sarah). Love playing around with these. Thank you for all your time and effort creating these.

[@raymagr]

Thanks for your generosity and spreading your knowledge.

[@2GoRoam]

Thank you Ray. Best wishes.

[@no-secret-chart]

This was amazing! Thank you, Neil and Sarah! You two rock! ❤

[@user-bg9em7ch6k]

I love love love your demonstrating a variety of strategies, and the term “blunt instrument” to describe- you’re providing people with the ability to visualize their own situations and encouraging them to think a bit more critically. Bravo, and thank you!!

[@richardbouchier2502]

Neil thank you for all your hard work and patience. ❤

[@2GoRoam]

Thanks Richard, appreciate it.

[@pataleno]

Cheers mate. Downloaded. cracking

[@TheKiwikai]

Thanks for these spreadsheets to visualize retirement. The only addition I would like is the ability to add social security/pension at a certain age while keeping the spending the same (inflation adjusted). For example, if we spend the inflation equivalent of $6k/month for the first 15 years of retirement and then start a $5k pension at age 70, we wouldn’t want to start spending $11k/ month. Rather, we’d want to reduce our draw at that time to the $1k/month gap between the pension and our regular budget. This lower draw at 70 could mean we could spend quite a bit more the first 15 years without running out.

[@EvangeleneStoreng-go3ix]

Love the way you keep it real!

[@jackiestewart5062]

You are doing a great job Neil, it is very interesting to me.

[@sonjak2395]

Fantastic work!

[@2GoRoam]

Thank you Sonja, appreciate it.

[@gaylewestney9000]

Thank you for preparing the spreadsheet. I have downloaded it and look forward to trying it.

[@SteveAMcPherson]

Fantastic stuff guys! ❤

[@ianabbott3421]

Exactly what I’ve been looking at- interesting to see your take on the scenarios however working from the “how much do I need” to establish income and drawdown amount, inflation, and state pension it’s a very interesting drawdown profile….we’re all at risk of sequence of returns unless we take an annuity and your 40 year take on this gives a good idea of the impact of varying returns- with a yr40 market return of -8% I think that would be enough to make anyone call it a day and get a 1-way trip to Switzerland!

[@id4688v]

Great video Neil! - I am retiring in Sept (Age 57) and have compared my budget against your spreadsheet (inputting my own numbers) and they are extremely close. BTW ~ My wife and I will also slow-travel... you and Sarah along with some others have inspired us. Cheers!

[@2GoRoam]

Excellent to hear, hope to see you on the road somewhere!

[@jcm9356]

Thank you for your videos, they do get you thinking. BTW I have had a Royal London DC pension for approximately 35 years and have had an average return of 7.3%, so your example over the long time frame is (for me anyway) pretty accurate.

[@jays1970]

Can you direct me to the video where you describe the drawdown method you used please? I've watched a few videos now, can't find it.

[@Ian-tt8cs]

Thank you for your video Neil. You have put sooo much work into this. Looking forward to seeing your next one as I feel none of these ones will probably suit my needs as U want to tailor them towards what kind of expected health I hope I would have during retirement, i.e mobility etc.

[@2GoRoam]

Thanks Ian, yes I hope the next couple of videos specifically might be really helpful.

[@DaveCYFF]

Most of these studies do not take into consideration cost and charges and based on US stocks,a return is around 3.25% for UK less inflation ,adjust income downwards post 75 by 35% then factor in long term care plan after 80 + (50k per annum better look at the total life plan). Take more income in the earlier years and review each year is a better plan than increasing each year when you may not need any further income(just a thought not advice)

[@Matthersch77]

Thanks very much. My wife is hoping to finish at the end of the year at 52 as we’ve worked with our IFA and as long as I can work for the next 10yrs, we should be ok. It’s important for us to enjoy time. The only thing we forget we can’t control…. So we know we are lucky to be able to take this next chapter. Your stories inspire us and we are looking forward to the future. I must admit, I don’t like the 4% rule etc… I want to get it so i actually spend our money over time so we die with close to zero….. it’s a shame for people to be very old with lots of savings as do believe they are lost memories etc.. yes I’ve read the book. Thanks again,

[@Nordkapp65]

Very useful tool, much appreciated, I like the various permutations. I'll see if I can model a reducing % as spending likely decreases as we enter the Slow Go and No Go years.

[@job181]

I think that’s coming next

[@2GoRoam]

Yes that will be coming soon.

[@nobullshoot]

everyone retiring on a budget needs to do this. I assumed 0 growth and 0 inflation and spending down to zero. I can still make it to 96 if SS holds.

[@job181]

Thanks for this 😊

[@2GoRoam]

Thank you, pleased you found it helpful.

[@job181]

Very yes! Looking forward to the rest of the series 👍

[@jonoldroyd3885]

A great intro to forecasting how a pot of money could last whilst drawing down. The numbers you've shown from the spreadsheet can look quite good, but we'll experience inflation eroding the value of the value drawn down. Maybe worth showing another column to express the value of the money withdrawn each year, e.g. in today's value. Then there's other thing that can be added such as state pension etc., how people's need for money evolves over retirement age etc. but that'd be a lot more complex s'sheet. Thanks for the idea tho'. I'm trying to fathom my own pension income & quite a few different models and having different scenarios helps build confidence that there are options, such as cutting back some years etc. Need to be flexible if returns don't happen some years.

[@mikeward8232]

Hi guys, I think you planned to do another session on your preferred draw down methods? Is that still in the works? Love the content 😀

[@RetirementDreamsToReality]

Thank you for resource and ideas. Something weve been thinking about for a while, which method to use. We re considering the bucket strategy too. Definitely lots of methods to consider.

[@MarkBrigitteGrigsby]

Hi Neil and Sarah, Do you have a copy of the spreadsheet in AUD ? Love watching your episodes, very useful

[@richguest]

I’m quite liking the look of the Vanguard Dynamic spending strategy, coupled with enough cash waiting in the wings to supplement income during times of poor market returns, plus retaining the ability to adapt my plan along the way.

[@2GoRoam]

Hi Rich, yes the Vanguard Dynamic Spending is a really interesting one.

[@richguest]

@@2GoRoam any chance to mention it in a future vid - I'd be interested to hear your take on it.

[@2GoRoam]

Yes! You won't have to wait long either :-)

[@wl660]

@@2GoRoamI heard about this from Diane, an IFA. Let me know if you need their detai…..only kidding! 😊. I just report those posts as SPAM. Seems to work, as they get removed….but hope that is for everyone.

[@paulsbell]

Thanks, is your column E wrong in the 1/n Rule tab? Shouldn't E10 be G9-D10? Or am I missing something?!

[@thomasforster725]

Great video again. thank you! My thoughts are that these models are interesting. I am not sure how I can apply them for me. In my personal view the world is changing rapidly. And I believe we are headed for a major war which will change everything. I doubt that I can rely on my pension from Europe. However if this doesn't happen then that would be fantastic. However I believe as I get older, I will use less for travelling, eating, etc. BUT I will use more for medical insurance, medical care, etc which can be gigantic. If I dont want to rely on my kids I should fund this myself. So .... I am not sure how to plan for an unknown future.

[@paultapper9300]

Looking on how to retire / finances required etc. Very basic plans but good to see roughly where to point the finger. I see it being very dependent on government policy, as i see it they want you dead within 5 years (70yoa, so they can tax all the inheritance thats left. As its the biggest pool fund of money in the country and they want to get hands on. AU)

[@daydreamer4902]

Jim and Mavis are 32 and apparently robbed a bank.

[@2GoRoam]

Haha well that is one approach. Maybe I didn't clarify... they are of any random age but have a retirement pot of 1million :-)

[@job181]

😂

[@GrrliinaK]

Actually, they likely started a cult. 😊

[@valorieb5229]

I agree as a widow single female

[@travellinman382]

🤣😂

[@plewis23snooker]

Hi Neil, thanks for the video, really helpful. However think you may have a formula error. For example 1/n tab on 10 years left shows new portfolio of £375k, but after withdrawal of £42k the portfolio after withdrawal is below £300k. Paul

[@2GoRoam]

Hi Paul, really appreciate you letting me know of a potential issue. I have just gone back to check and can see the formula is working correctly, basically it is reflecting the withdrawn amount and the -30k return in the market from the PREVIOUS year. So that has a compounding effect on the numbers, the -30k return and the withdrawal of 42k dropped it to 299k. Hope that clarifies.

[@plewis23snooker]

Thanks Neil

[@2GoRoam]

No problem, I really appreciate you letting me know. I was on it immediately :-)

[@sassasins031]

@@2GoRoam How is Inflation being reflected in the 3 different sheets? I don't see it referenced in any Formulas.

[@seivadeel]

Hi Sarah and Neil, Many video’s YT showing an average annual quote of 10% return on pensions funds. I’m with a leading pension provider in my work’s pension scheme, it’s nowhere near that more like 4% over that last 20 years. How can I improve this? Many thanks Lee

[@2GoRoam]

Hi Lee, really interesting question. We hope that as you get through the videos that we are sharing over the coming weeks and months it will get you to the bottom of this. Beware of anyone that can promise a market return of 10%. Low Cost Index Funds are the approach that we both take. Hope that helps. Best Wishes Neil

[@BoninBrighton]

We manage our own funds and take dividend income each year- we’re achieving 9% over the last 5 years and don’t pay 1-2% management fees. Your managed work fund has higher costs because you’re not doing any of the work neither are you taking any of the risks either. Neil isn’t managing his own funds (beyond investing in unit funds) so doesn’t get the higher rates of returns.

[@mikehaines6520]

I feel that many examples have the returns as being far too high - I’ve gone for a 4% increase annually in my pension pot, - 3% inflation (big gamble) and a 3.5% annual increase in the OAP, subject to the triple lock , I’ve also taken the Office of National Statistics most likely longevity - realise that there are massive annual fluctuations but feel that it’s kind of right. - Been fiddling with Excel and it’s what I’m basing stuff on.

[@BoninBrighton]

@@mikehaines6520 what’s also of interest is the small changes in costs eg the Bus Pass will save me £50-£80 a month (I got rid of my car and live in a city) also concession prices eg theatre music events etc. also we tend to eat nice lunches rather than going out to dinner about 30% cheaper for identical choices. There’s also a lot of free stuff for retirees. Plus at a certain age in the UK there’s a fuel allowance. Teachers are about to get 5.5% pay rise so I’ll get the same in my teachers pension. There are so many unique situations for a retired solo/couple. A lot of solo retirees are ending up in Thailand etc where an income feels 3-5x as big…. Lots to consider.

[@carlyndolphin]

I’m not a financial advisor but I invest in passive global index funds such as VWRP. Type VWRP into google and you can see the historical data. Just remember future returns are not guaranteed.

[@LisaBlumire]

Love your explanations. We look at our budget 1st to work out how much to take that is tax efficient. We have a top up buffer if something goes terribly wrong that year. Living FIRE for last 4 years with a spreadsheet model in hand and monthly review of our spending. If inflation causes our budget to be tight we cut back on non essentials that month. Flexibility is key.

[@2GoRoam]

That sounds the right approach, deciding what you need first. Think you'll like what I will be talking about in the next couple of videos.

[@porschecarreras992cabriole8]

What are the 3 retirement strategies? I am lost. You just changed numbers, years and portfolio starting points but what are the strategies?

[@BlokeWithABoat-uh8nf]

Neil's retirement strategies are shown on the tabs on the bottom of his spreadsheet, ie 4% rule, 1/n & percentage of portfolio.

[@sassasins031]

A "Golden Years" plan where you take a higher withdraw rate at the start of your retirement years (when you have your health) would be interesting to see. Most plans end up with huge withdrawal rates when you least need the money.

[@BethMartin-y3x]

I agree. This is our plan, but it's a bit uncomfortable due to sequence of return risk. Still, life is for living, and we plan to offset the larger withdrawals (like 6%) in the first few years of retirement by subsequently being nomadic for 3-6 years and dropping our spending thanks to staying in low-cost-of-living countries most of the year. By living on only part-time remote work income and/or social security during that time, a 0-2% withdrawal rate will allow the portfolio to recover and grow to the point where we can come back to the US and live on 4% withdrawals, if we wish. Of course, we may determine during that time that we prefer to make our home outside the US and only visit for extended periods. It's fun to play around with all the options. I'm excited for the next video to learn about more flexible and creative drawdown strategies from Neil.

[@markeh1971]

Luckily this tends to be true, your active years are very few and you tend to just go to the shops until you are trapped in your house. I’ve seen this first hand. Life is a lottery so enjoy it whilst you can. M.

[@livingworkingoutsidebox]

Very informative. 👍 looking forward to seeing the whole series. I see sort of evolution in how we look at retirement. 🤔 Will you be taking a look at how people who have retired, but are only using their retirement funds for the first 1-5 years? Who and how?🤔 more of a hybrid-retirement. You my friend and a bunch of other content creators are perfect examples, to various degrees. They are fellow content creators over 40 that have built channels around FIRE, Slow Travel, Cruise Life, Finance, Cars, etc.😮 At first its like a full time job, then as skills and experience improve the time commitment drops, while the income increases. Along with multiple income producing assets. Some great examples you could interview: Our Rich Journey, Grounded Life Retirement Travel, Vagabond Buda, just to name a few. Thoughts?

[@2GoRoam]

I do hope to interview some others absolutely. I reached out to a fellow FIRE person last week with a view to interviewing sometime soon.

[@andacami]

Download not working 😐

[@roygoad2870]

Have you ever done a vlog about Annuities?

[@CraighelenFittler]

Was unable to get the spreadsheet working - it only downloaded in a copy version. Could not change the cells. Looks great though.

[@brendanmcparland4607]

How can you calculate your wife and children ?

[@miniade1]

Can anyone help, I can’t seem to edit the green box amounts I just get copy only! Thanks using iPad google sheets app.

[@job181]

Open up a copy and you can edit. Or send to yourself as an excel sheet if you have windows

[@2GoRoam]

Hi you can do as job181 says or when opened, go to the File menu and then select "Make a copy" from the menu.

[@miniade1]

@@2GoRoam thanks, used to using numbers 🤦‍♂️appreciate the work you do. Just turned 50 so spending more time on this now.

[@ad9898]

I've downloaded the spreadsheet, unfortunately it's 'view only', so can't change the values.

[@keziasarah]

Anyone else have a problem with downloading - I did, can VIEW only, cannot enter my own numbers?

[@systemx4]

In 2022 markets fell over 20%. 1M>800k -their 40k =760k. Scary

[@GaryKingdon]

And by mid 2023 back to its pre drop position, and by 2024 more than 10% above it, and further since. Cash bucket to use during the down year(s), and the pot is back to higher than was, to now allow cash buckets to be replenished.

[@slayerrocks2]

I plan to UFPLS. I intend to crystallise twice what I need, take double the tax-free amount and a third of the taxable amount. Effectively paying 10% on my DC pension. I have a target of age 60, five years from now. This strategy should be good for 20 years, by which time, I won't be spending the same. I won't live another 45 years. COPD, high BP and a life of shifts. I'm gonna have a busy 10 years and then slow down.

[@rickh7553]

sorry am i missing something here? to get £40,000 wouldnt you have to take £50,000 from the pot to cover tax at only 20%. therefore the "pot" would decrease by a higher amount than the examples?

[@2GoRoam]

Hi Rick, these are examples that I'd love people to play with for themselves. We have viewers from all over the world. To attribute tax treatment for that wouldn't be something possible in this kind of video.

[@rickh7553]

@@2GoRoam No probs just i fooled myself initially thinking how much i had in my pension to draw off till the fact that the value was really total - 20% tax dawned on me. :(

[@ivanbeacon5883]

For a spreadsheet to be of any use it needs to have a tax column. But as you know nobody spends the same in their 80's as they do in their 60's so rigid percentage models just don't work.

[@johnsmith-dm2tq]

I am confused about these calculators, if I have a million and I earn 4% on bonds. I can take out 40k every year indefinitely. Why does it Calculate inflation? I am missing something big.

[@GaryKingdon]

Because if inflation is increasing the amount you need to spend the same “real” amount of 40k. And your bond giving you said 40k is not covering the inflation amount. So in relative terms (or real returns) it’s 4% less inflation, so even if inflation is on track at 2%, your 4% bond is really on giving you 2%

[@simonwinsbury]

Who’s got a million?? Can we have some real world figures ….

[@RJS4287]

Brevity is the soul of wit

[@2GoRoam]

Sorry to disappoint RJS. I know that my approach isn't for everyone.