BEST Investment For Short-Term Income Needs? | Maximize Retirement Income

[@SafeguardWealthManagement]

Hey Everyone, We've seen more on more scammers here on KZbin. Some are using our logo and commenting on our videos with a whats app contact. Know that we don't have a whats app nor would reach out in that capacity. If you see these scammers, please report them to KZbin. It would be greatly appreciated!

[@SafeguardWealthManagement]

@@_-Karl-_ mmmm, I wasn't aware that's an option. We will look into that. Thanks for the tip!

[@johnkumpelis1121]

Very interesting video, took a 2nd viewing to soak in for understanding. Would appreciate some examples of client portfolios that shows different strategies your team uses to illustrate some of these concepts/findings from this interesting study. I appreciate these type of technical videos and some quick examples would really showcase all the value u provide to your viewers.

[@Just_forfun9140]

Stocks & bonds both are going down. Inflation erodes cash. Can you do a video for retirees. Lets say a single person retired at age 65, not collecting SS (fra 67), lives into late 80s, need 60-70k income yearly in today's dollars. What kind of a portfolio does this person need, how much savings should they be having to last them till the end. I could have picked a couple, but a couple becomes single after one passes, and just to keep it less complicated.

[@foilcap]

Easy. Invest $10M at 5% and you are all set.

[@jimhova]

Thank you so much for all the information! I'm known to be a pretty smart person and I learn quickly but some of the concepts such as penalizing the downside were not easy to grasp. I feel now as if I need to go find a book so that I can truly understand what you're talking about. I also wonder how MUCH these concepts are better than straight cash. Is it worth paying a professional thousands per year to implement these things? Thanks again!

[@dpcats]

I understand the concept of the market linked asset, but I am curious to learn what technically was used for your study.

[@SafeguardWealthManagement]

40% upside rate on the S&P 500

[@marcalvarado1915]

Do you guys ever consider using covered call ETFs or option collared ETFs in lieu of bonds? It seems that the cash generated by these ETFs can work to maintain asset value even in a falling market if reinvesting or can of course be used as income. Right now my option ETFs (JEPI and XRMI) have held up better than the market while producing a significant income. Do these type of funds have a role in the retirement portfolios you guys create? They are pretty popular but I don’t see you discussing them although I may have missed it.

[@Scott-sm9nm]

I'm a little confused why something as simple as HYSA are not included?

[@stevendominguez5517]

As others have said, provide more concrete examples we can look to implement. The result is all well and good, but the asset mix that yielded the best results is what makes the video worth watching. Or is that what you're selling?

[@bobriemersma]

Nobody ever says much about "the skim." Both a rainbow of taxes and fees that come into the picture as soon as you take a step into the Wall Street casino where most can only afford the nickel slots in the lobby.

[@davidfolts5893]

The Math Money Maven has hit another home run; thanks for another great video Eric!

[@SafeguardWealthManagement]

Thank you David!

[@davidfolts5893]

@@SafeguardWealthManagement: My pleasure, positive comments bring more traffic to your KZbin channel, which benefits everyone.

[@tulsatom4307]

The ending ( 18:00 ), ‘Developing a Liquidity Schedule’ reminded me of the ‘Glide Path’ of a Target Date Fund; * would you say that there is a similarity?

[@xwhyzzwhy]

I enjoyed and appreciated the careful analysis and clear presentation, and would like to see additional studies. Sometimes you can find something new and useful. Even if the results just confirm conventional wisdom, its good to know that the math backs it up and there's actually a good reason to follow the convention. I was hoping for a practical example at the end, but that could be another video in which these findings are applied.

[@billbrettner2350]

Hi Eric, Very interesting video. Wouldn't mind seeing a demonstration on an actual test case ... a specific example. Thanks.

[@utubr0]

Great, would love to see more on this.

[@markgriffith2251]

What rate are you getting on the cash in this example?

[@SafeguardWealthManagement]

3-Month T. Bill. This is generally used to show cash in most studies

[@wdeemarwdeemar8739]

Cash may not be king but it helps me sleep at night.

[@SafeguardWealthManagement]

I certainly don't think cash is a terrible option. Question though, how do you use cash? Other comments are welcome as well. Is it something where you move the next a X number of months of expenses to cash each year? Consistently hold it as a buffer if the market turns and then utilize it? Hold it as a much larger position outside of 12 months of expenses?

[@alanyoung159]

@@SafeguardWealthManagement I was thinking along this same thought. Idk if you did a video about bucket withdrawal strategy in retirement, but I was thinking this might be helpful in the "short term" bucket of money.

[@krishnadevulapalli315]

Sounds like a Vanguard Wellesley income is better than cash for income needs?

[@Antandthegrasshopper]

1 year CD @4.55% Why take risk from the cash bucket???

[@joegambs4505]

I find your videos very informative. It is interesting that stocks are grouped as one type. Seems that dividend paying stocks tend to have less volatility than for example Tesla. It would be interesting to see stocks grouped by risk profile. Would outcomes be different if dividend paying value stocks were compared to tech growth stocks?

[@cameriqueTV]

It's really frustrating to have a plan built that sounds good, only to have world events slash your plan by over 50%. It's going to take longer to rebuild than I have time left in life.

[@MaryLopez-em3rc]

This has happened many times in my boomer life and why I haven’t looked at my accounts much in the past year. Our 9% Ibonds were the best thing going last year. Too bad only $10k allowed.

[@jlizardi5013]

I try to watch, and it is like yes, make sense, let's continue, yes, keep going, and then it is like, what happened? What was the point? the strategy? We're all those charts relevant? 🤔😕🙄👎

[@christopherstewart9874]

It seems you have a different definition of "need" than I do. If I absolutely, positively NEED $50,000 adjusted for inflation in one year, having an optimized portfolio that meets that goal 95% of the time is not acceptable. If you just "hope to have" $50,000 your analysis is fine.

[@jacobkowski7705]

So, TIPS is the best?

[@johnbrown1851]

I think the word you are using for the title should be Fare not fair ☺️

[@randyh6027]

interesting video but that's a really bad error

[@foilcap]

Blah, blah, blah. Buffet does not "do diversification". And if you want it - just buy index funds. And short term, as Peter Lynch put it: "Stocks fluctuate". Nobody knows.

[@butopiatoo]

Uhhhh.... totally confusing and i'm guessing you haven't got an application of this strategy over the 2000-2003 bust and the 2008-2010 bust. Not interested. I'll muddle through with lower returns. If I was 20-40 maybe this is useful. Over 60 not.

[@SafeguardWealthManagement]

Application of what strategy? We looked at numerous investments and portfolios over a significant length of data, including the bear markets you indicated. Also, this video is age agnostic. Most applicable to retirees as they have consistent short-term income needs

[@qwerty4324ify]

@butopiatoo Exactly, this is for money you need sooner than 20 years. If you're 30 years out and saving, just make sure you get the full 401k match and put it in VOO or equivalent. If you're retiring (not earning) and need to withdraw funds over a 1-5 year horizon then sortino optimized portfolios or hedged funds are important.

[@butopiatoo]

@@qwerty4324ify thanks for your reply. I'm 67.5 and I'm not seeing how this analysis(?) strategy(?) translates into a plan that gives me safer/better returns than just having multiple buckets chasing yield. If it makes sense then go for it.

[@qwerty4324ify]

@@butopiatooassuming you rebalance annually, if you need money in the next month cash is easiest, if you need it over the next year and pull out 100k at a time, you might put it in MM (or monthly laddered CDs MYGA) to get you an extra few % or $k. However, if you have fixed expenses over the next 3-5 years, then one of these plans is useful. For example an indexed annuity Jan 01 to Jan 03 S&P down 30% (15% each year), but principal would be protected. Jam 03 to 04 you would have made 40% of the 25% S&P return or 10%, higher than any safe investment. Over 3 years of enormous volatility and a terrie market you average 3% annual without risk.