Episode 245: Retirement Withdrawals: When to Use Your Portfolio, When to Use a Buffer

In this episode of ‘Retire with Style’, hosts Alex Murguia and Wade Pfau discuss various aspects of retirement planning, including the importance of finding purpose in retirement, strategies for asset allocation and location, understanding retirement expenses, planning for long-term care, and investment strategies. They emphasize the need for a structured approach to retirement income and the significance of having a volatility buffer to manage market fluctuations. The conversation is rich with insights and practical advice for those preparing for retirement. Listen now to learn more!

Takeaways

• Retirees need a purpose to retire, which can be explored through workshops.
• Asset allocation should consider pre- and post-Social Security phases.
• A social security delay bridge can help manage withdrawals before benefits start.
• Retirement expenses can vary significantly based on personal circumstances.
• The 80% replacement rate rule is a common guideline for post-retirement spending.
• Long-term care expenses should be planned for conservatively, with a reserve fund in mind.
• Investment strategies should adapt to market conditions and personal risk tolerance.
• A volatility buffer can help manage sequence of returns risk in retirement.
• Using a total return strategy can provide flexibility in spending during retirement.
• It’s important to have quantitative guardrails for investment strategies to avoid emotional decision-making.

Chapters

02:51 Finding Purpose in Retirement
06:10 Asset Allocation and Location Strategies
11:56 Understanding Retirement Expenses
18:08 Long-Term Care Planning
23:53 Investment Strategies for Retirement
29:58 Volatility Buffer Strategies

Links 

Join Wade and Alex tomorrow, September 9, from 12–1:30 PM ET for a live Retire With Style YouTube Q&A! Bring your retirement planning questions, from Social Security and tax planning to investment strategies, and get answers in real time. Submit your questions in advance at retirewithstyle.com/contact, and visit retirewithstyle.com/live to be notified when we go live.

📘 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

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