How to Turn Investments into a Retirement Paycheck 2023

While you are working and saving, you accumulate a collection of accounts, such as IRAs, 401(k)s savings and annuity accounts, and other workplace investments including stock options and deferred compensation plans. You may own stocks, bonds, mutual funds, annuities, CDs, iBonds, and more.
When you retire, how do you align all of these things to work together to create a reliable retirement paycheck? What do you sell first? Which account should you draw from in which years?
In this webinar, we’ll show you how we answer these questions and align portfolios for the purpose of withdrawing regular cash flow to live on in your retirement years.
This webinar covers:
The one factor that has the most impact on investing success in retirement
How to decide which accounts to draw from
How you determine what to sell and when to sell it
What taxes to watch out for
Your class instructor, Dana Anspach, will illustrate taxes with real life examples.
We look forward showing you ways to plan ahead for taxes and potentially reduce your tax liability.
Chapters:
0:00 Intro
4:10 Logistics
18:04 Research
58:51 Behavior
1:06:16 1099 Mistakes to Avoid
1:05:42 Q&A
DISCLOSURES
This presentation contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice.
Sensible Money, LLC (“SM” or "the Firm") is a registered investment adviser. Registration is a legal requirement - it does not imply approval or endorsement. For additional information about SM, including its services and fees, you can request a copy of SM’s disclosure brochure by emailing us at [e-mail] or visit www.advisorinfo.sec.gov.
Any charts in the presentation are not meant to show the performance of SM strategies or to imply the performance of any model portfolios. Any charts or examples are meant to show the Firm’s belief in sticking to a plan over time, but there is no guarantee that you will have the same or positive results. Any results portrayed in these cases or examples are not representative of all of SM’s clients or the clients’ experiences. No portion of this presentation should be interpreted as a testimonial or endorsement of SM’s investment advisory services.
Past performance is not a guarantee of future results. When investing, depending on your timing, you could lose money. There is no guarantee that the prevailing market and economic conditions during the time frames in the graphs will continue, and performance may be negatively impacted by a shift in such conditions.

[@SantaBarbaraAlberto]

Enjoy your video. I am a do it yourself. Built my own plan and hired an advisor to validate. I have been retired for 8 years now and am happy with our results so far.
Your video provided clarity. Thank you. We found ourselves starting at a 50/50 port and at 80/20 now. We are also moving closer to an all index portfolio. Most of our investments are now for legacy purposes. Maybe a car or two in the future. Luckily enough, we have my pension and a robust SS benefit. Thank you!

[@madras61]

As always information as comprehensive and very useful. You always answer all the questions no matter how complicated they are. I strongly recommend anyone watching dish to reach out to your firm for further consultation.

[@davidfolts5893]

Consistently high-value content from one of the financial world's thought leaders.

[@Jl-620]

Was hoping you could take a look at my question from 3 weeks ago. Thank you in advance.

[@Jl-620]

Loved the webinar and have watched it about 3 times!!. Question: You mentioned you build the bond ladder in an IRA or 401k, which makes sense to avoid paying high taxes when selling the stock in your potentially higher earning years to buy those bonds. However, using the bonds as they start maturing once you retire, implies withdrawing from the IRA first, rather than the conventional wisdom of drawing first from taxable accounts. Does this mean that this strategy favors a sequence of withdrawals of deferred, then taxable, and last Roth, as oppose to the conventional wisdom approach?. Thank you in advance, and thanks for all you do to educate us!

[@ralphparker]

I see an issue filling bond ladder on up years. Say the year before the market drops 50%, the next year it rises 10%, you are buying bonds, but you are still down 45% from your peak before the crash. What you need is to identify a mean path that you would expect the market to flow around. Then you could replenish bonds when the market is above that mean path and defer if it is below. If it is a lot above the mean path, maybe fill up for some extra out years. If it is just above the mean path, fill a only a year.

[@Sensiblemoney]

Yes, exactly! That is what we describe in terms of the Critical Path - a personalized glide path that you measure against to make those decisions.

[@PH-dm8ew]

Great webinar. I have almost all my money in traditional IRA with around 12 % in Roths. Retired last year at 61. Hardest thing is to figure out how and where to pull funds from and when to do it. am a true DIY retirement planner. I have way too much in treasuries. Have the basic 60/40 mix as of today. Been winging it for the last 10 years and only a year into retirement am i starting to wonder if I know what i am doing... Had my granddaughter and family move back in with me on a permanent basis this year. It all keeps me busy...lol. In another 10 years i will know "if" i know what I am doing.

[@charleshughes2487]

Examples of SPIAS

[@ralphparker]

Speaking of aging, I'm near the beginning of the overconfidence and aging chart timeline. It seems there would be a natural time to turn my assets over to a professional manager. What cues would I be able to recognize that alerts me to do just that.

[@Sensiblemoney]

Dana here. That is a great question. I don't know exactly what cues you would look for. The fact that you're asking the question shows an enormous level of self-awareness. If you find yourself feeling certain you know the direction of the economy, or wanting to make portfolio moves based on something you are sure will happen - those are often the mistakes we see that are born out of overconfidence. For example, people who went to cash before the last Presidential election sure that if the party they weren't voting for won, that the market would tank.

[@agates9383]

For me the signal to hire a money manager was when I turned 55 and decided I wanted to retire at 60 and I didnt have the time or knowledge to properly allocate my accounts and manage them to assure that I'd reach my goal at 60.

[@stevekamenetsky5747]

RMD age is 73 or 75, not 72.

[@agates9383]

Yep and depending on composite of your assets you need to start thinking about ROTH conversions and how doing them affects your taxes liability and Medicare IRMMA amounts that get triggered by conversions - too many moving parts for a novice with a couple million to make ALL the right moves, IMHO.

[@rightwingprofessor1356]

Michael Finke's last name is pronounced "Fink Ah"...not "Fink E."