The Long View: Revisiting What Is a Safe Retirement Spending Rate After a Tough Year

[@michaelswami]

Core inflation: inflation if you don’t eat or drive.

[@davidfolts5893]

The Long View is my Go To Podcast!

[@quartytypo]

Retirement is finished for most people. They're saving and Investments don't come close to supporting their lifestyle

[@faguan5034]

where is the link?

[@johnyjsl9219]

Confused. In the beginning Christine says this year withdrawl rates are higher at 3.8. Toward the end of the video it s mentioned that folks retiring this year are worse off. Can anyone explain?

[@denniskirschbaum9109]

The reason is that although the safe withdrawal rate is higher, the amount that you would have draw on will have decreased because of the market dropping roughly 20% as of the day I am writing this. So the actual amount you'd have to live on if you started drawing this year is smaller. Make sense?

[@johnyjsl9219]

@@denniskirschbaum9109 yes, but it wasn’t intuitive. Also being that the market is always fluctuating I still wonder how all of the sudden 3.3 is 3.8 now and who knows what next will bring? I thought the whole idea is that the withdrawl rate is the worse case scenario applicable to any year. These folks are changing it all the time it seems. Thanks !

[@jimclark5037]

Bond returns of 5% and equity of 9% is encouraging IF real inflation drops below 9%! I hope your inflation predictions hold, that would be wonderful

[@thomas6502]

Thank you.

[@edmundfong7288]

Happy Holidays! It is a luck of the draw. Recommend people take the time to write their own Investment Policy Statement using the Morningstar template (as well as the Morningstar template for Retirement Withdrawals) for a proper perspective. Most people don't have the policy statements or just sign off on the version sold by a Financial Advisor. You might want a high withdrawal rate if you retire early, delay social security, and make roth conversions. Is your asset allocation 60/40 for inflation? Or is it 40/60 for sequence risk? Will it be 50/50 when you start social security? To be honest, I could not stomach the 20% drop this year, now I am mostly treasuries given the bear market and next year recession.