How to Never Run out of Money in Retirement

[@Thomas-ff7wn]

I just retired recently and i find this video very creative if i must say, these psychological concepts are useful for individuals attempting to avoid mistakes

[@Bigwilli123]

Because Roth IRS are tax free. You will be able to keep more money you have worked hard for. I want to invest more than 300k but not sure how to go

[@Andres_853]

Consider financial planning especially with the complexity of investment options.

[@camela8445Mar]

Having an finance advisor is the best way to go about it and investing generally especially for near retirees. I have been in touch with a coach now.

[@camela8445Mar]

His name is Nathan Travis Cook

[@Sanchyfab]

Thanks for the tip! would love to grow my reserve regardless of the economy situation, i'm in need of guidance too

[@markmurrell1894]

I just want to live comfortably off my pension and SS. My TSP money can be my “fun” money.

[@b.coxemba6799]

That's exactly what I do. I'm living and budgeting off my annuities right now at age 54 (lifetime earnings) Department of Justice pension, Veteran Compensation since age 51 and hopefully Social Security once am eligible at 62. I plan on drawing on my retirement savings the year I turn 62 in December. Keeping my principal that I retired with at 51 plus 100k. Any withdrawals would be a bonus for the following year but not included in the budget. Hopefully leaving a inheritance (generational wealth) for family in a trust account.

[@paulettepierre6758]

Exactly! My wife retires in 3 years from Homeland after 30 years. I’ll retire 5 years later from the VA. Enjoy the pension and SS and use the earnings from TSP investments for travel!

[@noshooz21044]

Likewise. My wife and I both retired with over 40 years Federal service. She was CSRS and I was FERS. Between our pensions and my SS the TSP $ can just sit and grow until we need it.

[@itguru2037]

@@b.coxemba6799awesome. Did you retire debt free?

[@noshooz21044]

I did all of these calculations before I retired to ensure myself that I could.

[@glennet9613]

The Australian superannuation is dynamic and works on a minimum withdrawal of the end of year balance, 4% below 65, 5% 65 to 74 and then increases by 1% every 5 years. It is impossible to run out of money and has worked for us for twenty years.

[@LittleCabin]

I believe the 4% rule also assumes a 60-40 stock-bond portfolio.

[@johngill2853]

The original study was 50/50 But the Trinity study showed more portfolios(Google images "Trinity study")

[@xavier_lucas]

I’d be retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I’m curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $120K per year but nothing to show for it yet.

[@Paullookman]

This is huge! would love to grow my reserve regardless of the economy situation, my 401k has lost everything accrued since early 2019, at this point, i'm in need of guidance, can you point me?

[@xavier_lucas]

i already copied and put her name on the web and i'm really impressed by her website, thanks for the recommendation.

[@katsadventures7027]

I have 360 K I’ve decided I only need to take out 1000 a month. I’m just taking a little bit over 3%. I’m really hoping it grows some in the next few years. I may take a little more. My bills are really low, so I’m grateful for that. I don’t need more than that right now. Do you think that’s a good amount to take out? I have a 60/40. I’ve decided this week. I am taking my money out of the bank and going on my own. The bank is taking 1.78% from me. I don’t like that.

[@frankm379]

Great tips!

[@johna1060]

Hey Dallen, thanks so much for your informative videos. Right now I'm in the L income fund as a retiree but I want to transition to the "buckets" for short medium and long term investing as you've stated. I have to admit I'm a little sketchy having to weather some market down turns. But it does make sense to have long term growth, even in retirement. Once again many thanks for your great advice.

[@PlanYourFederalBenefits]

I'm glad it was helpful!

[@specialt1579]

Good advice! Keep it simple..i like it!

[@PlanYourFederalBenefits]

Thank you for the feedback!

[@andyroo9381]

I have no concept of retirement income and I anticipate living poorly after I retire.

[@PlanYourFederalBenefits]

I'm sorry to hear about that. If you would like a little help, feel free to set up a meeting with us: hawsfederaladvisors.com/work-with-us/

[@baitcaster7260]

I want to transfer my tsp to an IRA when I RetireAnd invest it into Dividend Etfs .Are the Dividends taxed at regular income in an IRA?

[@brian4284]

It depends if the dividends are qualified. If not, then yes.

[@baitcaster7260]

@@brian4284 yes the the Funds that I want to Invest in are qualified.

[@striperseeker]

how do you not touch the principal with RMDs?? It's impossible

[@johngill2853]

You reinvest the RMDs in taxable

[@striperseeker]

@@johngill2853 yes, but that is "touching" the principal and you are paying taxes on it. Besides, you would have to put it in a non-retirement account, as only income and wages can be invested into any retirement account.

[@PlanYourFederalBenefits]

Great question! Typically the RMD is necessary at age 72. And people usually retire before that age. Using the principal strategy, your fund will most likely grow enough from your retirement to age of RMDs to not have an impact on the initial amount that you had at the start of retirement.

[@TR8jhlo]

Dallen, note correct spelling: principal.

[@b.dailey3180]

Rule: Principal is the pal in your school. JS

[@verasearle7570]

That is a school leader spelling.

[@b.coxemba6799]

Principle is the fundamental truth, belief or ruling So concerning interest rate refer to principal

[@bleedingonthehomestead6643]

How you cannot spend the principal. Every time a distribution is taken. Shares are sold. The number of shares will keep going down. We just hope the individual share value keeps going up

[@b.coxemba6799]

@@bleedingonthehomestead6643 You're not withdrawing by shares but actual cash value, no matter what the share price. If in January your retirement savings is $300,000 and because you're retired you not contributing to your savings by December you earned 5% ($15,000) you withdraw $15,000 and January your starting balance is $300,000 (principal). If the price of the stock dropped aka your value is below $300,000 you don't make any withdrawals.

[@tjlazer71]

With dynamic distribution, do you have to adjust that percentage every year or do you set it at like say 5% and it does it automatically as the market affects your balance?

[@PlanYourFederalBenefits]

Thanks for the question! You can always control how much money is take from your TSP. So, every year you can adjust the percentage based on the dynamic distribution strategy.

[@jasonkatada1583]

What about sequence of returns, is that under #3 Dynamic?

[@PlanYourFederalBenefits]

Great question! Sequence of returns is a risk that every retiree is under. it refers to the potential loss of money with bad investment decisions early on. This could certainly be a risk under the #3 dynamic strategy that we talked about in the video.

[@JD-nu1fw]

If only if inflation was only 4%.