AT about 1:01:00, questioner is early retired and would like a way to estimate the highest withdrawal rate that gives best total lifetime withdrawal, or total overall value - I believe this is the specific goal of the iORP online retirement calculator, which was down for some months but now up again as of 1-15-2023 when I did my latest projection. There is a Simple and Advanced set of initial settings and it includes things like Roth conversions up to a specified tax rate etc. Hope I heard the questioner correctly. Thanks to Rob and all participants.
After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing intrest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio
Center around two key targets. In the first place, remain safeguarded by realizing when to offer stocks to cut misfortunes and catch benefits. Second, get ready to benefit when the market turns around.I suggest you look for the direction a representative or monetary consultant.
@Dragon Jee Much appreciated, I gazed her upward on the web and was profoundly dazzled by her qualifications; I reached out to her since I really want all the assist I with canning get. I just set up a call .
Withdrawal strategies are just to make a retiree feel better when spending versus the ease of accumulating. These strategies are all back-tested, when the future is completely unknown. Given the number of supposed “black swan” events I’ve already experienced in my investing lifetime, I have come to realize that no strategy will be guaranteed to work. Pick one approach and be flexible.
Regarding the question about Personal Capital and it not showing the breakdown of the particular fund/account. You can manually enter the breakdown (how much large, small, etc) of a fund that it doesn't have the info for. I did that with my 457b that was through ICMA. Unfortunately it switched company names and Personal Capital won't update any new data now that it changed names to Mission Square. Also my home loan was sold and Personal Capital won't download that info anymore.
Along the lines of individual stocks, I look to own things that aren't already the main component of index funds that I already own...... The future index components that haven't made it yet. If it doesn't yield a dividend then it is a speculative position for individual stocks.
Have you ever considered comparing different withdrawal schemes (4% rule, guardrails, bucket strategy, etc.) to see what the practical differences are?
Advising is best when relationship-based rather than transactional. I don't get when people who aren't part of the field give advice like this as though all people need is for someone to take a glance at a shared screen or a couple of PDFs and render an opinion. It takes more than an hour or two just to understand the client and their unique situation.
Rob, i've made 2 comments and they have both disappeared. There's nothing controversial in them, no links, no over editing of the comment. I'm really confused. Can you look in your spam to see if they've turned up there for some unknown reason please?
Just a thought. Back when people had pensions nobody spent much time worrying about this stuff. Would it be an easier retirement just to put a chunk in a SPIA or QLAC
Your believing myths about what pensions actually covered At its peak 36% of people collected pensions and many were small. To get a pension you usually had to work decades at a job and that job had to have a pension system ( remember small businesses were very prevalent back in the old days)
Financial discipline is not just for investing it also applies to the withdrawals as well. If you can show restrain in up years and not look at it as a windfall you will be just fine. More important to make good decisions in limiting the things that can erode away your savings by getting insurance or supplementals to minimize your exposure.
Planning on retiring this year ... I think our general approach for $ amount to take out each year will be something like... [$ in portfolio] ÷ ( 95 - current age). It should be reasonably conservative in that not expecting to live until 95, and it has guardrails built in because if portfolio decreases in value we'd take less.
what percent does that turn out to be? if i apply it to me at the time of my retirement in 2021. it would be about 2.6%, lower than the 3% i am currently drawing.
Exactly. This seems like the ONLY rational withdrawal strategy, and it is (essentially) the one that I am utilizing, myself. Only, I am planning on total depletion by age 110..I already have on relative, who made it to 103 yrs old, and a couple more who made it to nearly 100! Of course..this strategy wouldn't work for anyone who had "legacy" intentions, which I don't. With any luck..the last check I will ever write, will be to the undertaker..and hopefully, it will BOUNCE!
@@jamesmorris913 Congrats on the genes reality is bal of science to date est they’re only 25% of longevity. Exact ones not known yet. If you live most of your life in area w/high % of 100 and over chances are higher. Also factor in health care for later yrs (prob 60+) if you live that long but have incr chronic health issues. It’s just reality. Not just quantity but quality. Cheers
Agree wholeheartedly that the bucket strategy is messy. I really like the idea of covering “needs” with fixed income like Social Security, pension income, annuities, bonds, CDs or the like and having your discretionary funds come from equities using a fixed percentage (maybe with some broad guardrails). I’m not concerned if my “fun” money fluctuates a bit and Social Security will cover most middle income folks basic expenses like rent and food (especially if you delay until 70). Look up the Spend Safely in Retirement Strategy from the Stanford Center on Longevity.
@mere_cat Stanford Center on Longevity; excellent resource. When I read your comment, I visited their website to learn about them and also subscribed. Am looking for information from different sources as I take the leap to retirement, complicated by having to wind down a 35 year old business w employees.
In 2008 I was rebalancing my stocks and a lot of people said international was the future. I did not listen luckily. Here we are 15 years later and I still only have 5% over there. I would not move on it until you see the tide turn.
in 2012 with the s&p outdistancing international over the preceeding 3 yrs, i rebalanced between US and international and then put more of my contributions towards international for several yrs. i should have let it ride instead.
@@johngill2853 don't know if this was directed at me but in 2012 and several yrs after i sold "high" for the s&p and bought "low" international. the s&p went higher for yrs and international stayed low for yrs.ha ha. i mainly did this with my 401ks and roths. i later switched again to s&p for some of those contributions where it gained more ground. this was overcome by my taxable account which was mainly US equities and where i put more money than my maxed out retirement accts. VEU was down 15.46% vs S&P about 19.7%( about 430 bps) 2022 but has lagged US by more than that typically. so it did "beat" the US.
@@Random-ld6wg I wish you luck with the market timing. But don't mistake strategy for outcome. Pick an asset allocation that meets your need willingness and ability to take risk and stick to it (unless you really believe you know something everyone else doesn't?)
@@johngill2853 good or bad it will be on me. if even bogle or jl collins didn't invest specifically with international it is not necessarily a big mistake. as everybody knows a lot of earnings come from multinational us companies. international coming out of a low interest environment vs the US i think will still be outperformed by the US. i am not convincing you, this is just what i think.
Really excellent webinar, lots of options. Thank you, very helpful.
AT about 1:01:00, questioner is early retired and would like a way to estimate the highest withdrawal rate that gives best total lifetime withdrawal, or total overall value - I believe this is the specific goal of the iORP online retirement calculator, which was down for some months but now up again as of 1-15-2023 when I did my latest projection. There is a Simple and Advanced set of initial settings and it includes things like Roth conversions up to a specified tax rate etc. Hope I heard the questioner correctly. Thanks to Rob and all participants.
After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing intrest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio
Center around two key targets. In the first place, remain safeguarded by realizing when to offer stocks to cut misfortunes and catch benefits. Second, get ready to benefit when the market turns around.I suggest you look for the direction a representative or monetary consultant.
@Drago250 Might you at some point kindly leave your speculation consultant subtleties here? I really want it earnestly.
@Dragon Jee Much appreciated, I gazed her upward on the web and was profoundly dazzled by her qualifications; I reached out to her since I really want all the assist I with canning get. I just set up a call .
Withdrawal strategies are just to make a retiree feel better when spending versus the ease of accumulating. These strategies are all back-tested, when the future is completely unknown. Given the number of supposed “black swan” events I’ve already experienced in my investing lifetime, I have come to realize that no strategy will be guaranteed to work. Pick one approach and be flexible.
Rob, get rid of these trash bots lol they're ruining the comment section.
Still not clear about retirement withdrawal strategies. Will wait for your video on the subject.
Regarding the question about Personal Capital and it not showing the breakdown of the particular fund/account. You can manually enter the breakdown (how much large, small, etc) of a fund that it doesn't have the info for. I did that with my 457b that was through ICMA. Unfortunately it switched company names and Personal Capital won't update any new data now that it changed names to Mission Square. Also my home loan was sold and Personal Capital won't download that info anymore.
Along the lines of individual stocks, I look to own things that aren't already the main component of index funds that I already own...... The future index components that haven't made it yet.
If it doesn't yield a dividend then it is a speculative position for individual stocks.
Congrats on 80K Subs Rob!
Have you ever considered comparing different withdrawal schemes (4% rule, guardrails, bucket strategy, etc.) to see what the practical differences are?
What fees does vanguard charge for etfs? I haven't noticed any.
if my withdrawal rate is 4 percent and im getting 5.25 percent on cd`s why would i own stocks
"Buy an hour or two of a good advisor..." Where? All the services I have found require a t least a monthly commitment.
Check his website. He has them on there
Advising is best when relationship-based rather than transactional. I don't get when people who aren't part of the field give advice like this as though all people need is for someone to take a glance at a shared screen or a couple of PDFs and render an opinion. It takes more than an hour or two just to understand the client and their unique situation.
Rob, i've made 2 comments and they have both disappeared. There's nothing controversial in them, no links, no over editing of the comment. I'm really confused. Can you look in your spam to see if they've turned up there for some unknown reason please?
Prob just YT/google algo. Seems to happen to many and more often.
Based on the fluctuations in the stock market over the past twenty years my IRAs biggest withdrawals come from market losses. 2023 Here we go again.
Just a thought. Back when people had pensions nobody spent much time worrying about this stuff. Would it be an easier retirement just to put a chunk in a SPIA or QLAC
Your believing myths about what pensions actually covered
At its peak 36% of people collected pensions and many were small.
To get a pension you usually had to work decades at a job and that job had to have a pension system ( remember small businesses were very prevalent back in the old days)
Would you discuss the pros and cons of an MREIT ticker DX? I don't fully understand how they are able to offer such a high yield. Thanks!
Financial discipline is not just for investing it also applies to the withdrawals as well. If you can show restrain in up years and not look at it as a windfall you will be just fine. More important to make good decisions in limiting the things that can erode away your savings by getting insurance or supplementals to minimize your exposure.
Congrats on 80k!
Planning on retiring this year ... I think our general approach for $ amount to take out each year will be something like... [$ in portfolio] ÷ ( 95 - current age). It should be reasonably conservative in that not expecting to live until 95, and it has guardrails built in because if portfolio decreases in value we'd take less.
what percent does that turn out to be? if i apply it to me at the time of my retirement in 2021. it would be about 2.6%, lower than the 3% i am currently drawing.
Exactly. This seems like the ONLY rational withdrawal strategy, and it is (essentially) the one that I am utilizing, myself. Only, I am planning on total depletion by age 110..I already have on relative, who made it to 103 yrs old, and a couple more who made it to nearly 100! Of course..this strategy wouldn't work for anyone who had "legacy" intentions, which I don't. With any luck..the last check I will ever write, will be to the undertaker..and hopefully, it will BOUNCE!
@@jamesmorris913
Congrats on the genes reality is bal of science to date est they’re only 25% of longevity. Exact ones not known yet. If you live most of your life in area w/high % of 100 and over chances are higher. Also factor in health care for later yrs (prob 60+) if you live that long but have incr chronic health issues. It’s just reality. Not just quantity but quality. Cheers
Agree wholeheartedly that the bucket strategy is messy. I really like the idea of covering “needs” with fixed income like Social Security, pension income, annuities, bonds, CDs or the like and having your discretionary funds come from equities using a fixed percentage (maybe with some broad guardrails). I’m not concerned if my “fun” money fluctuates a bit and Social Security will cover most middle income folks basic expenses like rent and food (especially if you delay until 70). Look up the Spend Safely in Retirement Strategy from the Stanford Center on Longevity.
@mere_cat Stanford Center on Longevity; excellent resource. When I read your comment, I visited their website to learn about them and also subscribed. Am looking for information from different sources as I take the leap to retirement, complicated by having to wind down a 35 year old business w employees.
ty
👍🏻
4% is also a good guardrail - reset your WR if inflation takes it above 4% of your portfolio.
In 2008 I was rebalancing my stocks and a lot of people said international was the future. I did not listen luckily. Here we are 15 years later and I still only have 5% over there. I would not move on it until you see the tide turn.
in 2012 with the s&p outdistancing international over the preceeding 3 yrs, i rebalanced between US and international and then put more of my contributions towards international for several yrs. i should have let it ride instead.
Didn't international outperform US last year?
Your timing the market and waiting to buy high and sell low? (Because that's what it seems like to me)
@@johngill2853 don't know if this was directed at me but in 2012 and several yrs after i sold "high" for the s&p and bought "low" international. the s&p went higher for yrs and international stayed low for yrs.ha ha. i mainly did this with my 401ks and roths. i later switched again to s&p for some of those contributions where it gained more ground. this was overcome by my taxable account which was mainly US equities and where i put more money than my maxed out retirement accts. VEU was down 15.46% vs S&P about 19.7%( about 430 bps) 2022 but has lagged US by more than that typically. so it did "beat" the US.
@@Random-ld6wg I wish you luck with the market timing. But don't mistake strategy for outcome.
Pick an asset allocation that meets your need willingness and ability to take risk and stick to it (unless you really believe you know something everyone else doesn't?)
@@johngill2853 good or bad it will be on me. if even bogle or jl collins didn't invest specifically with international it is not necessarily a big mistake. as everybody knows a lot of earnings come from multinational us companies. international coming out of a low interest environment vs the US i think will still be outperformed by the US. i am not convincing you, this is just what i think.
ed