Hi James, I’m getting close to retirement, do not have a financial planner, and your video’s have been a welcomed find for me. I have been binge watching in hopes of getting a better understanding of how to prepare for retirement. You have a great way of explaining things and am so grateful to have found you on here. Thank you for all the info you put out, you are helping so many people in doing this.
This the best video on this subject. Easy and simple to understand. We need more advisor like you not those muddy everything, pretending to be the “expert”. Real expert is make complicated stuff simple! Thank you 🙏
Have an emergency fund, or bucket, for smoothing over market crashes. My strategy will be similar to what I do now in my working years. Draw up to a limit each year to cover expenses and fill up an emergency fund. Once the emergency fund is full, draw just enough to cover expenses. That limit will be periodically adjusted. Depending on when I retire, it might start as 3% and go up over time as the years remaining reduce.
Best explanation I've seen on the subject - thank you! You mention that software to perform the calculations automatically rather than doing it oneself on a monthly basis. Is there a specific software package that you recommend?
Great video thank you. I find the dynamic withdrawal system much more intuitive than a simple 4% rule. The +/- 10% per year makes sense, and also where you withdraw from is a key point often missed by others, so thank you for adding that in. Interestingly, Vanguard conducted a similar study, and their analysts came up with +5% and -2.5% as the optimal range to get the most out of your portfolio over time. Have you seen this? Any thoughts on this?
Enjoyed the video. I think a lot of people would instinctively follow the guardrails ... no withdrawal increase in a bad year, take from asset class that grew etc, but glad someone did the math to verify that approach!
This is a big help. I retired early with a partial pension but have enough afraid to withdraw from my investments. At the same time I have no children or spouse to worry about and would like to spend everything before I die. I have been looking for a good drawdown strategy and this info helps a lot😀 one issue that you do not address in this is how to incorporate the go go, slow go, no go concept into these strategies. I would like to feel more confident spending more money earlier in retirement. Thanks!
Hi James …. Your videos are all very clear and concise! Thanks for another great video! This strategy makes perfect sense, but I’m surprised that you didn’t mention how this could be impacted by RMDs. While we can adjust our withdrawals based on this strategy doesn’t this get disrupted by RMDs?
I’m glad you liked it! You have to take a required amount for your RMD, but you could always turn around and save/invest the after-tax amount of the RMD to work around that issue if your withdrawal is higher than you want.
I like what’s I’m hearing, except for the 35% bonds thing. Ima have 100% in stocks, and have about 2 years of living expenses in cash for when the stock market crashes.
I have a 401K, pension, separate IRA, and Roth IRA. I am looking at retiring at 62 (7.5 years away), I am thinking about taking my pension. I will wait until 70 to take SS, I with have my pension withdrawal down my Investments to live until I collect SS. Once I start taking SS, I should only have to withdraw out 1% of my portfolio to keep up with inflation. Do you have any video about pension payout versus taking the lumpsum?
Yes they could definitely force you to withdraw more than you need. You do always have the option of reinvesting any RMDs from your retirement account back into your brokerage account, which would then reduce your net portfolio withdrawal.
Are these plans intending to maintain $1 Million until your passing or will it go down? I am single, no kids, I don't want to leave a $Million estate behind? 1 am 60, near retirement but I watch these videos say I need a Million Dollar Portfolio? I do Monte Carlo starting at $400K and end up with More than I Started with? Very Confusing?
I like what’s I’m hearing, except for the 35% bonds thing. Ima have 100% in stocks, and have about 2 years of living expenses in cash for when the stock market crashes.
Hi James, I’m getting close to retirement, do not have a financial planner, and your video’s have been a welcomed find for me. I have been binge watching in hopes of getting a better understanding of how to prepare for retirement. You have a great way of explaining things and am so grateful to have found you on here. Thank you for all the info you put out, you are helping so many people in doing this.
You're very welcome!
I agree; James has a great way of explaining everything - thank you James.
This the best video on this subject. Easy and simple to understand. We need more advisor like you not those muddy everything, pretending to be the “expert”. Real expert is make complicated stuff simple! Thank you 🙏
Thanks for watching!
Have an emergency fund, or bucket, for smoothing over market crashes.
My strategy will be similar to what I do now in my working years. Draw up to a limit each year to cover expenses and fill up an emergency fund. Once the emergency fund is full, draw just enough to cover expenses. That limit will be periodically adjusted. Depending on when I retire, it might start as 3% and go up over time as the years remaining reduce.
Best explanation I've seen on the subject - thank you! You mention that software to perform the calculations automatically rather than doing it oneself on a monthly basis. Is there a specific software package that you recommend?
James, your videos are so informative. Thank you so much for operating in your gift to benefit so many.
Thank you for watching!
Great video thank you.
I find the dynamic withdrawal system much more intuitive than a simple 4% rule. The +/- 10% per year makes sense, and also where you withdraw from is a key point often missed by others, so thank you for adding that in.
Interestingly, Vanguard conducted a similar study, and their analysts came up with +5% and -2.5% as the optimal range to get the most out of your portfolio over time.
Have you seen this? Any thoughts on this?
Enjoyed the video. I think a lot of people would instinctively follow the guardrails ... no withdrawal increase in a bad year, take from asset class that grew etc, but glad someone did the math to verify that approach!
I’m glad you enjoyed it!
This is a big help. I retired early with a partial pension but have enough afraid to withdraw from my investments. At the same time I have no children or spouse to worry about and would like to spend everything before I die. I have been looking for a good drawdown strategy and this info helps a lot😀 one issue that you do not address in this is how to incorporate the go go, slow go, no go concept into these strategies. I would like to feel more confident spending more money earlier in retirement. Thanks!
Again - thank you for helping to explain from what part of our portfolio we should be taking $ from!
You’re welcome!
well explained and makes perfect sense. No hard sell of any products.
Hi James …. Your videos are all very clear and concise! Thanks for another great video! This strategy makes perfect sense, but I’m surprised that you didn’t mention how this could be impacted by RMDs. While we can adjust our withdrawals based on this strategy doesn’t this get disrupted by RMDs?
I’m glad you liked it! You have to take a required amount for your RMD, but you could always turn around and save/invest the after-tax amount of the RMD to work around that issue if your withdrawal is higher than you want.
Good information. Thanks for the video
You're welcome!
Love you man. I’m at least 30 years older than you but you are much wiser. Thank you for these vids.
This is specific, actionable information.... THANK YOU!!
Very informative video, James. Thanks.
Very welcome
I glad that this video challenged the 4% rule.
Thanks for watching!
I like what’s I’m hearing, except for the 35% bonds thing. Ima have 100% in stocks, and have about 2 years of living expenses in cash for when the stock market crashes.
love hearing about Guyton's guardrails... makes sense. IS there a book that is better than another that explains his theory?
I’m not aware of any book about it, but he wrote a pretty in-depth white paper that’s available to read online.
This is an amazing video! I'm wondering how I could use Guyton's Guardrails since I plan to have a lot of my assets in Balanced Funds when I retire.
Thanks Joe!
Awesome video. Practical and something relatable.
Glad you liked it!
Thanks James!
Another great video. I’ve shared with my family!
Semper Fi 👍🏽
Thank you!
James - great information, very valuable, very simple sound approach. Thanks
Thank you, Paul!
I have a 401K, pension, separate IRA, and Roth IRA. I am looking at retiring at 62 (7.5 years away), I am thinking about taking my pension. I will wait until 70 to take SS, I with have my pension withdrawal down my Investments to live until I collect SS. Once I start taking SS, I should only have to withdraw out 1% of my portfolio to keep up with inflation. Do you have any video about pension payout versus taking the lumpsum?
Awesome strategies to add to our financial tools! Thanks for such a thorough job!
You're welcome!
Excellent James.thank you .........all the best from Scotland
Thank you!
Excellent content.
Thank you
James what about tax diversification ideas in retirement
50k is gross and taxes will eat a lot of money.
This was helpful. Thank you!
You’re welcome!
What about RMD’s? Required distributions take over any planned withdrawal strategy, right?
Yes they could definitely force you to withdraw more than you need. You do always have the option of reinvesting any RMDs from your retirement account back into your brokerage account, which would then reduce your net portfolio withdrawal.
Great Video!
Yes TNX GOOD brother
I have heard you talk about Guardrails but I cannot find it anywhere. Can you provide a link? Thank you
Yes, right here: readyforretirement.buzzsprout.com/958921/10778334-how-to-implement-and-do-better-than-the-4-rule
Are these plans intending to maintain $1 Million until your passing or will it go down? I am single, no kids, I don't want to leave a $Million estate behind? 1 am 60, near retirement but I watch these videos say I need a Million Dollar Portfolio? I do Monte Carlo starting at $400K and end up with More than I Started with? Very Confusing?
Glad it helped!
Wow Tnx yes ok thanks
I like what’s I’m hearing, except for the 35% bonds thing. Ima have 100% in stocks, and have about 2 years of living expenses in cash for when the stock market crashes.
Dear DelayedGratification: Given your undiversified portfolio, an extended downturn of the market may delay your gratification longer.