Episode 161: Retire with Style Live (not really) Q&A: Part 5

In this episode of 'Retire with Style', Alex Murguia and Wade Pfau continue answering your questions on various aspects of retirement planning, focusing on the importance of buffer assets, the impact of market volatility, and how to make accurate financial projections. They share personal updates, including plans for a pickleball tour, and delve into the complexities of economic modeling, emphasizing the need for a consistent approach to managing retirement income and expenses. They also discuss the significance of tax efficiency in managing taxable investments and how funded ratios can influence retirement strategies. The dialogue emphasizes the need for consistency in financial planning and the psychological aspects of market awareness. Listen now to learn more!

Takeaways

• Sequence of returns risk is crucial in retirement planning.


• Having a rules-based framework helps reduce emotional decision-making.


• Using conservative assumptions can lead to better planning outcomes.


• Behavioral finance plays a significant role in retirement decision-making. Inflation significantly impacts future budgeting and spending.


• Building financial tools can be straightforward, but taxes complicate things.


• The funded ratio helps determine withdrawal strategies in retirement.


• Lower withdrawal rates correlate with higher funded ratios.


• Investing aggressively is possible when overfunded.

Chapters

00:00 Introduction and Personal Updates

05:30 Understanding Buffer Assets in Retirement Planning

19:54 Projections and Assumptions for Retirement Planning

26:28 Building Your Own Financial Tools

32:35 Investment Tracking and Market Awareness

42:40 Taxable Investments and Funded Ratios

Links

Want to find out your personalized retirement income style? Click here to take a free RISA: https://risaprofile.com/style/

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

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