Audio Quality Notice:
Please note that this episode contains some technical audio issues affecting portions of the recording. While we’ve made every effort to improve the sound quality, some disruptions may remain. For clarity, full transcripts and closed captions are available and linked here for your reference.

In this episode of Retire With Style, Alex and Wade kick off a new arc focused on the fully revised Third Edition of the Retirement Planning Guidebook. The conversation walks through the foundational ideas behind the book, beginning with retirement income styles and why there is no single “best” strategy for everyone. Wade explains the importance of aligning retirement income decisions with personal preferences, comfort with risk, and behavioral realities rather than forcing a one-size-fits-all approach. The discussion then expands into efficiency-focused retirement planning, highlighting practical ways retirees can improve outcomes through Social Security claiming decisions, tax planning, and organization for incapacity and estate planning. The episode concludes with a framework for understanding the three major risks retirees face: longevity risk, market risk, and spending shocks, as well as why planning becomes especially critical during the transition into retirement.

Takeaways

• Retirement income planning does not have a single correct answer; multiple viable strategies exist, and the best choice depends on personal preferences and behavior.
• Understanding your retirement income style helps prioritize which strategies, tools, and chapters of the planning process deserve the most focus.
• Retirement efficiency means getting more after-tax spending power or legacy from the same set of assets, often by making better decisions rather than taking more risk.
• Social Security claiming decisions remain one of the most impactful and accessible efficiency opportunities for many retirees.
• Strategic tax planning, including Roth conversions, can create immediate and long-term benefits without requiring market forecasts.
• Organizing documents for incapacity and estate planning is a major but often overlooked source of efficiency with both financial and psychological benefits.
• Retirees face three primary categories of risk: longevity risk, market risk amplified by withdrawals, and unpredictable spending shocks.
• The years leading up to and immediately following retirement are a fragile transition period where early planning creates significantly more flexibility and better outcomes.

Chapters

00:00 – Retirement Planning Guidebook Series Introduction
05:35 – What’s New in the Fully Revised 3rd Edition
06:36 – Why Retirement Income Styles Come First
08:11 – Is There a “Best” Retirement Income Strategy?
10:33 – Investing vs. Annuities: Where Each Fits
11:18 – Addressing Bias in Retirement Planning Advice
14:29 – Getting a Second Opinion on Retirement Strategies
17:14 – Risk Premium vs. Risk Pooling Explained
19:22 – What Retirement Planning Efficiency Really Means
21:32 – Social Security Claiming as a Planning Lever
23:22 – Roth Conversions and Tax Planning in Retirement
24:57 – Estate and Incapacity Planning Mistakes to Avoid
26:45 – The 3 Biggest Risks in Retirement
29:22 – Why Retirement Risk Is Different Than Accumulation
31:41 – The Fragile Retirement Transition Period
33:20 – Why Planning Early Improves Retirement Outcomes

Links

📘 New Release: The Retirement Planning Guidebook (3rd Edition)
Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement

📅 Upcoming Webinar: Tax Planning for Retirement in 2026
Join Wade Pfau live for a free Retirement Researcher webinar on Wednesday, January 28 at 1PM ET. He’ll walk through what proactive tax planning should look like before the 2026 tax changes kick in. Reserve your spot now at retirewithstyle.com/podcast

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips