You're Retiring. Now What? Retirement Planning: A Reassessment [2022]

[@dwights1464]

Amazing that now in November 2023, "The State of Retirement income 2023" report released by Christine Benz and other authors at Morningstar says that a distribution rate of 4% is okay now. Did they get a lot of flack from the retirement planning community on that 3% rate referred to in this video a year ago? That's a big change based on only a year's worth of additional data to make plans covering a 30 year future period.

[@charleshurstreinvention3959]

I would say there is also a mental aspect to this that most don't consider. Here was my take and I tried it a few times as I posted to my own subscribers. I was a physical therapy contractor and at times still am. But three times I went overseas to exit out of the workforce. Each time was four months. The first few weeks were great. Then I started sleeping later and later. Finally it got to the point where I was going to bed at 3:00 am and getting up at noon. You can only train in the gym so long and see the castles and temples so many times. Even living in Gdansk, Poland on the Baltic beach----you take that walk down the beach---again. And I had no purpose. Even though I was in the beginnings of making my own videos and setting up the channel I still had 7-8 hours of down time a day. And I don't go to clubs and bars so that left a whole lot of idleness. End point--a human feels the best when there is a purpose. I used to work with the elderly and can tell you that they have a lot of depression once their role in life is gone besides that fishing trip---again. I think I'll also have a part time gig whether it is becoming the almighty influencer or being a part time physical therapist. My mental soundness is far better with a role to play than when I was on permanent vacation. Hope that helps someone out there--Charles

[@royprovins7037]

Understand what you are saying but it is still better than going into the office and dealing with the jerks again

[@charleshurstreinvention3959]

@@royprovins7037 Absolutely---you find something else. That's when you write that book----keep being great----Charles

[@brucefredrickson9677]

Need to find balance in life.

[@earlyreefer]

I always look forward to hearing from Christine Benz. 😍

[@aaron159r2]

These Morningstar contributors give some of the most sane, level-headed advice. I really appreciate it. Also, Jason Zweig's material is worth reading too.

[@garygodfrey9708]

I’m not sure how we as retirees are supposed to adjust down what we need to live on when everything is going up at the same time. It’s not realistic. In other words if you’re getting by on 4% of your portfolio, now you’re supposed to use 1% less when everything has gone up 10% or higher. I used much of Ms Benz’s money advice for our retirement planning, but now two years into retirement its not feasible for us to cut back at this time.

[@matt75hooper]

Oh stop. Spend the money ya big whiner. 1% 2% cut it out. Grab a crowbar & pry that wallet open.

[@jamesscott9471]

I have government forced annuity called social security tax. The problem is the administrator is short-sighted and keep changing rules. I should have had retired at age 59 -1/2. This was from the letter SSN sent me decades ago when I started working. What do you say? She just say take less out as a strategy. No magic. Tighten your belt.

[@stkedu]

Overall they have very valid points except for the low withdrawal rate. Many financial planners push to save more & to withdraw less. There could be a conflict of interest. Many are paid a % of assets under management. The more money you have invested, the more money they make. The key is the net cashflow from your investments vs your expenses and inflation rate

[@gordonsteen8415]

Great questions. Nothing is locked down. Inflation at 2%, investment return at 2%, withdrawal at 3%? Flexibility is key because none of the numbers are set in stone. Everybody is different and the future unpredictible.

[@jedpittman6739]

excellent as usual. Thank you consuelo! Wishing you and your team an excellent year!

[@bobdrawbaugh4207]

Most people that retire in their 60’s will not live 30 years in retirement. I think they would still be safe at 4 or even 5%.

[@michaelswami]

Consuelo is the consummate interviewer and pulls some great guests. Thank you.

[@fuzzresponder2225]

Would love to hire her for my financial guidance!

[@charleshughes2487]

Just a fan 😊

[@RaistlinKishtar]

They didn’t even mention Bitcoin. We’re early AF

[@R.and.R.]

I just don’t understand how TIPS do a portfolio any good. I just don’t think they appreciate enough over any other bond fund to be able to keep up with inflation.

[@favjr]

They don't. No bonds are useful for inflation. It's like saying "which wrench makes the best hammer?" Forget TIPs. Use commodities and producers, small-cap value, REITs and financials to deal with inflation. Those are hammers, not wrenches.

[@johnyjsl9219]

@@favjr stocks in general are good because they beat inflation, but R&R is talking about just keeping up...barely.

[@ronloftis9080]

@@favjr in today's environment I think that doing pairs trading in REITs could be great. Find REITS with low rates of capital (like Realty Income) and pit them against those with high rates of capital.

[@PH-dm8ew]

what about the 95 % strategy where you can either take the inflation adjusted safe rate (3-5 %) or 95 % of last years draw in a down market? Has anyone looked at the benefits and drawback of that strategy?

[@nrs6956]

Adequate/good health is really wealth. This becomes apparent, sometimes painfully, as you age. Beware of dissatisfaction as you age with acquaintances and possessions. Desire is the siren of destruction.

[@jamesmorris913]

Furthermore..It is true that Bill Bengen's 4% rule does insure a very low likelihood of not completely depleting a balanced account, AS LONG AS; you don't exceed 4% withdrawals. But..RMD's ramp that 4% up, RATHER QUICKLY; beyond 72. She didn't point that out.

[@b2bfusion]

Not sure I understand. Can you please clarify?

[@tomc409]

@@b2bfusion At 72 if you have a 401k/IRA and use the uniform lifetime table to determine how much you must withdraw from 401ks/IRAs, you'll divide by the table's distribution period. At 72 the divider is 27.4, where 1/27.4 is 3.65%, at 77 yrs it's 4.37%, at 80 yrs old it's 4.95% that you're forced to withdraw, at 85 yrs it's 6.25%, at 90 yrs it's 8.2%; gradually increasing each year. A couple years ago I believe it started out at a slightly higher percent. It's then possible that you're taking out more than you want and/or more than your inflation bump depending on market conditions and your guardrails, and might take an additional tax hit for those years than you wanted.

[@kennethkloby2726]

Yes, bigger rmds to stunt portfolio growth with the bonus of higher tax implications.

[@b2bfusion]

@@kennethkloby2726 that statement assumes majority of portfolio is in retirement but yes I hear you.

[@matt75hooper]

I like to pop in here occasionally and hear all folks with $5M....$10M in assets struggling on when to retire lolol. Oh Me Oh My decisions decisions.

[@jamesscott9471]

When you broadcast the show on TV? Can you announce the recorded day? I seen this show on TV last Saturday, she says the market is good now.

[@jamesmorris913]

How any financial-professional can recommend that bond funds (ANY type of bond funds) represent stability and safety, particularly for a retiree who is no longer contributing "new money" to their accounts, is utterly BEYOND ME. Especially, after Powell's hawkish statements, this week. Individual bonds (or TIPS) bought at auction, and held until maturity..now THAT'S safety.

[@praveenchawla6999]

You need bonds for a diversified portfolio. For example - In a market crash situation bond rise and then you call sell them and buy cheap stocks. So the hedging function of bonds not well appreciated.

[@chessdad182]

WealthTrack should do an episode on stock dividends for retirees.

[@billytheweasel]

I retired early. Too many people who deny covid is real were putting me at risk. Also, I wanted to get what I could from my pensions while I could - before a possible problem occurred. If I were thinking securities would help at all I'd be deluded. I got out - and rolled my IRA's to a no-fee physical vault gold IRA.

[@Mitzi73]

Are you diversified? I hope so.

[@jdgolf499]

I believe covid is real, but I also understand who the vulnnerable people are. If everyone had this common sense, including Lord Fauci, we would have been much better off. Protect those that need protected.

[@matt75hooper]

@@jdgolf499 have you taken a peek outdoors ? Or at WalMart ? People are in terrible shape. Covid had to wait in line to get out all these chubsters out there.