The pros and cons of investing your retirement assets 100% in equity, including half in international stocks. Why the 4% spending rule is too aggressive. Topics covered include: Why historical asset class return studies that use only U.S. data are biased How researchers build a broader database to study retirement outcomes and spending rates How a 100% stock portfolio performed compared to balanced portfolios and target date funds Why investors should have half their assets … [Read more...]
446: Die with Zero: Why You Should Start Spending Now
How to balance saving, investing, and spending for a fulfilling life. Why you will probably reach your peak net worth sooner than you think and should start drawing down your nest egg earlier. Why we can't optimize for a fulfilling life but can still have one. Topics covered include: How to estimate how much to spend from your retirement assets so you die with zero What is time bucketing, and why it doesn't work for everyone How to balance the fear of making a change with the … [Read more...]
438: Why Are You Investing? Defining Your Rich Life with Ramit Sethi
Camden and Bret sit down with Ramit Sethi, host of Netflix’s hit show, "How to Get Rich", author of the New York Times bestseller, “I Will Teach You To Be Rich" and host of the popular "I Will Teach You To Be Rich" podcast. He is known for his unconventional insights on money psychology and his no-nonsense approach to designing and living a rich life. Ramit's financial philosophy is centered around several key principles, including the importance of automating your finances, using money … [Read more...]
371: Find Your Retirement Investing and Living Style
What are the pros and cons of the four approaches to managing retirement savings. How to implement a bucketing or time segmentation retirement investing approach. Topics covered include: Why it takes time to find a retirement pattern that fits How retirement investing is a balance between safety-first and probability-based as well as maintaining optionality and committing. How total return investing differs from a safety-first approach What are products allow for a risk floor … [Read more...]
326: The New Math of Retirement Spending and Investing
How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed. Topics covered include: How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with … [Read more...]
306: Three Approaches to Asset Allocation
What are the three primary ways to allocate assets and build a portfolio when saving for retirement or living in retirement. Topics covered include How saving for retirement and living in retirement differ. What are the expected return and risk of the Permanent, Golden Butterfly, and All Season portfolios. What are the pros and cons of a role-based permanent portfolio. What are the pros and cons of a strategic portfolio mix, such as the Bogleheads Three Fund Portfolio What … [Read more...]
279: Why All Retirees Should Consider an Income Annuity
Retirees face two big challenges. The first is how to invest their retirement assets. The second is determining how much they can withdraw each year from their retirement portfolios. What many retirees don’t realize is these challenges can be greatly reduced by paying for essential retirement expenses from guaranteed income sources. Guaranteed income sources include Social Security, pension plans, and annuities. Surprisingly, only about 10% of retirees partially fund their retirement … [Read more...]
Investing Rule One: Avoid Ruin
How reducing exposure to a catastrophic event, such as running out of money during retirement, is a better strategy than trying to accurately predict a catastrophic event. In this episode you’ll learn: How repeated exposures to low probability events can lead to ruin. How bonds have outperformed stocks over long stretches of time . How the success of retirement spending rules depend on the market environment and why a flexible approach to retirement spending makes the most … [Read more...]
243: Do You Have Enough to Retire? FIRE Edition
What are the key metrics to determine if you have reached financial independence and can retire early. How major stock market losses can derail early retirement plans and what to do about it. Photo by Alicia Cleaver In this episode you’ll learn: What is the FI/RE movement and why is Suze Orman concerned about it.What is the simple formula to determine if you can retire early.How large stock market losses can lead to early retirement ruin and what to do about it. Show Notes Why … [Read more...]
161: What You Need To Know About Retirement Calculators
How retirement planning and retirement spending calculators work and what are some of their flaws. Why figuring out how much money you will have when you retire and how long it will last is a lot like the work hydrologists do to figure out whether Phoenix or Los Angeles will run out of water. Photo by Andrew Branch In this episode you’ll learn: How aquifers, aqueducts, rivers and springs are like retirement assets. What is water banking. What is the difference between … [Read more...]
