Don’t Spend LESS, Use This Retirement Spending Strategy!

[@robevans2114]

I hope to spend my last dollar on my last day. It seems dying with a lot represents a lot of missed opportunities, trips and gifts.

[@ralphparker]

My withdrawal strategy: Each January I do a MonteCarlo and set my spending rate to a 90% success rate. I use a bucket system so that 3 years in Bank and CD. 5 more years in Bonds and Preferred stocks. The remainder is Total Market and overseas.

[@gregcareaga9981]

2:50: extreme edge case 95th percentile. Interquartile range is ~2x to 4.5x, 10th/90th is even money to 6x.

[@Jeff-yy5fe]

My advisor uses income lab, and we love it! Very powerful tool, and we always love to hear you can spend more.

[@brindleandbay]

That is awesome!

[@mikeheineman5662]

Nick, very good information and easy to understand. We are glad we chose y’all to work with. Michael H.

[@conureron3792]

Quite an enlightening presentation.

[@brindleandbay]

Glad you think so!

[@floydestelle6242]

I plan on withdrawing my 50.00 per;month, no matter what anyone says

[@Dave-FIREd]

So, what is the actual withdrawal rate for the moden guardrails example? In the chart shown starting at 7:43, unless my math is wrong, it suggests an 11% withdrawal rate ($16,000/month from a $1.7M portfolio, is 11%). I played it back a couple times and you clearly state "monthly" spending. But you also said the amount includes Social Security, so without knowing how much the SS portion is, there's no way of really knowing the actual withdrawal rate being used.

[@clicgear100]

I like the system. Need to learn more about it, thanks.

[@davedeboy5726]

I sold 1000 shares of nvda to pay the taxes on those gains now. Then bought it back. I plan on buying a bugatti in 2 yrs. so now those shares are now balanced with a roth. Only pay on gains from here.

[@kele6596]

Lower guard rail: RMD

[@jreisz2003]

I plan to retire in two years and withdrawal plan is at end of year to move money that I need for the following year from investments to savings. This will be a two-percent distribution rate.

[@brindleandbay]

Sounds like you’ve got some room for dreaming or expanding your experience a bit!

[@travis7091]

I couldn't handle going from spending $16k to $15,200 per month in retirement🤣🤣

[@brindleandbay]

Ha ha!

[@randolphh8005]

Our biggest issue, which is likely true for many, is that our portfolio “needs” vary tremendously over the first decade. We entered retirement at 61/63 after working PT for 3 years and no portfolio needs. Then we began to transition with some PT income, one starting SS. I’m still waiting to take SS till 70 in over 5 years. Then we have another couple years of different spending needs. We will be 74/76 when we finally expect a consistent income and need. So any kind of proposed withdrawal strategy doesn’t work for us. We are probably at the extreme, but for most the first 5-10 years are going to be variable. So what to do?

[@brindleandbay]

Video coming out this next Sunday that speaks to that a bit.

[@dberry256]

I haven’t received the white paper download in my email yet. Usually those links come sooner rather than later. I would love to be teading it right now! Thank you for the offer; maybe you could check on the linking ability please?

[@brindleandbay]

Looking into it!

[@JoshuaMccaffrey-q4]

As a soon retiree, keeping my 401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

[@marcelmed4574]

If the goal is to leave a RRIF of $0 to limit estate taxes when you die,,so assume average death rate for males in Canada is 85. This strategy purely sets upper and lower limits to maintain a healthy portfolio balance. In this scenario you would die with a large RRIF amount putting you in a high tax bracket and potentially giving 50% of that amount to revenue Canada. This assumes you live in Canada of course.

[@bmohan55]

I am about 40% in SCHD on a slightly more than 1,000,000 portfolio and still working at 69. on most withdrawal strategies should i assume reinvesting dividends and then withdrawal per whatever rule I use OR cash out dividends and do a smaller withdrawal to meet the percentage I'm choose to follow?

[@tvanderwoude9616]

Modern Guardrails seems quite interesting…

[@ManishSabu-c7n]

This is very good information. However, I am a bit confused by your example (from the White paper). You put the initial withdrawal amount as $16,000/month for a portfolio of $1,732,000. Simple math tells me that this is an 11% initial withdrawal rate. Isn't that too risky? Can you elaborate on how that Initial Withdrawal amount is calculated?

[@brindleandbay]

Good question. That number does not represent the distribution from the portfolio alone, other forms of income such as social security are included. However, in some cases very large , temporary distribution rates can happen based on a persons goal… but that large is not sustainable.

[@MarkEdward2]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[@davidtrimm3823]

Nick- how does age at retirement affect your discussion?

[@brindleandbay]

Good question. As we get older , the risk of running out goes down- all things staying equal. As long as healthcare has been planned for, we should try to get the most out of life that we can.

[@floydestelle6242]

Age 73, RMD will be your low