The Long View: Justin Fitzpatrick - ‘Retirees Have a Superpower’

[@HeritageWealthPlanning]

Thanks Justin! Nice to see some folks not on the doomsday bandwagon and instead use some common sense.

[@gregsmith9862]

He lost all credibility when he said something along the line if “after a bear market retirees can increase spending”???? What? Using the American funds illustration tool, I once did a sequence of returns illustration for a client using $100k, 4% annual withdrawal taken monthly for ABALX (American Balanced fund, one of the best ones out there) starting both in 1970 and 1980. If memory serves me correctly, The 1970 retiree ran out of money in the mid to late 90’s because the growth in the 80’s & 90’s could not overcome the draw down in the 70’s. The 1980 retiree’s account more than doubled because the growth in the 80’s & 90’s more than compensated for the drawdowns on 2002 & 2008. It’s simple math. He has to increase his historical perspective. Note, to not run out of money, the 1970 retiree would have to reduce withdrawals to something like 1% (I’m going by memory, so correct me if I’m wrong) and most retirees don’t want to live just on social security, which is a very subsistence lifestyle for most middle class people. Unless they have a good pension, they’re not in a good financial situation. Note 2, I’m a recently retired financial advisor who doesn’t want to be in the situation of the 1970 retiree if we go into a decade of stagflation, so we’re actively reducing our budget where we can and de-risking investments as growth disappears.

[@mustavogaia2655]

Another point: I understand that postponing Social Security benefits is positive, but how much does delaying retirement increase the risk of death even before properly retiring,

[@myhouse-yourhouse]

Great as alwayd

[@dmoon9037]

1:03 start

[@timelston4260]

I'm not going to watch anything about anyone's "superpowers." Can society move on from that already.

[@raydee9251]

Excellent presentation! There are annuities now available that provide inflation protection options. Also, IULs can provide some protection due to stock investment and downside protection options.