Avoid This Portfolio Withdrawal Mistake Most People Make in Retirement скачать в хорошем качестве

Avoid This Portfolio Withdrawal Mistake Most People Make in Retirement

Today I’m talking about something that challenges the traditional way of thinking about portfolio withdrawals in retirement. If you've been basing your retirement income solely on the 4% Rule or similar strategies, you might be missing out on crucial aspects of your financial plan. Picture this: you've diligently saved for retirement, and you're ready to start enjoying the fruits of your labor. According to the 4 percent rule, you can withdraw 4% of your portfolio annually and have a high likelihood of that money lasting for at least 30 years. Here's the catch: real-life spending in retirement rarely follows a linear path. People often have staggered income sources or fluctuating expenses throughout their retirement years, which can significantly impact their withdrawal needs. If you and your spouse retire at age 65, you may not start collecting Social Security until a few years later. In the meantime, you'll need to rely more heavily on your portfolio to cover expenses. Then, once Social Security kicks in, your withdrawal requirements may decrease. Or perhaps your expenses vary over time. In this video, we’re looking at the case study of Jeffrey and Cindy. They retire with a $750,000 investment portfolio and have planned expenses for the first ten years, and mortgage payments for the first five years. Their Social Security provides additional income. Simply applying the 4% Rule without considering their changing expenses suggests they need a larger portfolio to retire comfortably. However, a deeper analysis reveals that their withdrawal needs fluctuate over time. Initially, they require higher withdrawals to cover temporary expenses like travel and mortgage payments. But as these expenses decrease, so does their withdrawal rate. Instead of blindly adhering to a fixed withdrawal strategy, we need to consider how your spending patterns evolve throughout retirement. One way to address this is by segmenting your portfolio to cover different phases of retirement. Allocate a portion of your assets to cover higher early expenses, such as travel or paying off debts, while investing the rest for long-term growth to sustain you in later years. By taking a more nuanced approach to retirement withdrawals, you can better align your financial plan with your actual needs and enjoy a more fulfilling retirement without unnecessary sacrifices or financial worries. ======================= Learn the tips & strategies to get the most out of life with your money. Get started today → https://www.rootfinancialpartners.com/ Get access to the retirement software I use in this video and more → https://retirement-planning-academy.m... 🔔 Make sure to subscribe here to be notified for future videos!    / @rootfp   _ _ 👥 Make sure to connect with us on all socials below → https://beacons.ai/rootfinancialpartners ⏱Timestamps:⏱ 0:00 - The problem with the 4% Rule 2:01 - Staggered income and expenses 4:25 - Client case study 7:07 - Withdrawal rate fluctuations 9:28 - Effectively position your portfolio 13:16 - The takeaways Other videos we think you'll like: About Root:    • Financial advisors with heart.   Worried about retirement? Start here:    • Worried About Retirement..Start With a Bla...   -- Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements. Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.