Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) - How To Protect Against Retiring, Getting Unlucky and Having To Work Again

How To Protect Against Retiring, Getting Unlucky and Having To Work Again

03/04/24 • 21 min

1 Listener

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Embark on a journey with us to conquer the elusive sequence of return risk, a financial advisor's cautionary tale that could lead you back to the grindstone post-retirement. We delve into strategies to shield your nest egg from the whims of the market, ensuring it keeps up with inflation while dodging excessive volatility. Our episode is peppered with practical tips and an engrossing narrative of a retiree in the 2000 market downturn, promising insights into the delicate balance between enjoying a comfortable retirement and maintaining fiscal health. Plus, I tackle a listener's skepticism head-on, celebrating the shared mission of securing confident retirements.
Retirement planning is an art form, and our financial canvas is constantly shifting with the market's tides. Today's discussion emphasizes the finesse needed to tailor spending in tune with market crescendos and decrescendos. I draw parallels between corporate bonus management and the savvy retiree's spending strategy, advocating for enjoyment without jeopardizing the longevity of your savings. It's about informed, adaptable decision-making—your gateway to a retirement that's as golden as you've envisioned.
To cap things off, we dissect the intricacies of sequence of return risk, demystifying William Bengen’s 4% rule and the pivotal role of real returns post-inflation. We navigate the often complex waters of retirement income sources, from social security to rental income, ensuring you're equipped with the know-how to weather market volatility. Your financial security is our priority, and this episode equips you with the strategic foresight to thrive through the ebbs and flows of the economy. Have a burning question on early retirement? I'm all ears—drop your queries on my website, and let's tackle this retirement puzzle together.

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.

Previous Episode

A Complete Guide To Roth v. Pre-tax (Early Retirement Pro Tips)

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Unlock the secrets to savvy retirement planning with our latest discussion on choosing between Roth and pre-tax savings. We dissect the usual tactic of leaning towards pre-tax savings when you're in a higher tax bracket—and Roth when you're expecting your income to drop—but we'll show you why this isn't just a black-and-white decision. You'll be privy to a compelling example of an individual who defies the typical investment playbook, thanks to a hefty pension. It's a deep dive into how unique personal situations can dramatically shape your retirement strategy and challenge the conventional financial wisdom.
Are you pondering an early retirement, perhaps before hitting the age of 55? We've got you covered with strategies that consider the intricacies of capital gains taxes, the 'rule of 55', and making the most of your brokerage accounts. By tuning in, you'll grasp the value of Roth accounts as tax insurance and understand how brokerage accounts can be a game-changer in funding those first years of retirement bliss, setting the stage for impactful Roth conversions. To wrap it up, we invite your most pressing questions and remind you that our insights are a springboard for your personalized planning. Remember, the road to retirement is as unique as you are, and our episode is the map you need to navigate it with confidence.

Next Episode

This Is The Mindset Shift Needed To Retire Early With CONFIDENCE!

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Risk in retirement planning is as personal as your fingerprint, and this episode peels back the layers to reveal just how customized your financial blueprint needs to be. I share heartfelt stories from my clients, such as the one who viewed market volatility as a thief lurking in the shadows of their nest egg, juxtaposed against the one who saw staying out of the market as a missed opportunity to dance with potential growth. As I steer away from the cookie-cutter advice, you'll discover the 'cheat code' to manage your spending in retirement, ensuring that you can live comfortably without the fear of running out of money.
Tune in to hear how emotional factors intersect with cold, hard numbers in the world of finance. I'll recount my own parents' journey with financial advisors, shedding light on the perils of inadequate planning and the merits of maximizing financial efficiency. We'll unravel the complex emotions behind pivotal decisions, like paying off your mortgage versus investing for the future, aiming to equip you with the wisdom to make choices that resonate with both your bank account and your peace of mind. For those eager to sculpt their path to early retirement, this episode isn't just a conversation—it's a compass.

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) - How To Protect Against Retiring, Getting Unlucky and Having To Work Again

Transcript

Speaker 100:00:00.119

There's a phrase for a concept you've probably thought of before but not heard it until right now , and it's the idea that you retire or retire early , get unlucky because markets don't perform well , and then you have to go back to work and what we want to do is protect against that and we call that sequence of return risk . Now , a lot of advisors will call it that sequence