August 21, 2013

FM 001: The Truth About Retirement Income & Dave Ramsey’s Shocking ROI and Safe Withdrawal Rate Assumptions with Wade Pfau

35 minutes

Click here to download the transcript of Wade’s top retirement income planning tips!

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In this first session of the Financial Mentor Podcast, Wade Pfau from RetirementResearcher.com, reveals deep knowledge based on published research about retirement income and return on investment assumptions for your portfolio.

What prompted this discussion was a disturbing publication by well-known author, speaker, and podcaster, Dave Ramsey claiming you can expect 12% long-term investment returns resulting in an 8% safe withdrawal rate.

Unfortunately, Dave's claims are NOT supportable by any of the data and run the risk of hurting listeners who follow his advice. In fact, as you will learn during the interview, Dave's claims are nearly double what the latest research would indicate is realistic to assume with important implications for financial planning. Wade and I set the record straight.

Related:

5 Financial Planning Mistakes That Cost You Big-Time (and what to do instead!) Explained in 5 Free Video Lessons

In this episode you will get access to one of the top minds in retirement planning research today. Wade's original research has been featured in academic peer review journals and his insights are guaranteed to take your understanding to a greater level.

In this episode you will discover:

How to forecast a realistic return for your retirement savings.

Why your investment return assumptions are critically important to your financial planning.

How safe withdrawal rates during retirement are calculated and what amount you should assume.

The critical difference between an average return assumption (statistical fiction) and the real-world compound return assumption that is affected by sequence of returns risk.

The difference between safe withdrawal rate research in the U.S. vs. safe withdrawal rates based on international data, and why you should be concerned.

How much should you save each month to achieve financial security?

How the wealth accumulation phase is completely different from the spending and distribution phase of retirement planning, and how to plan accordingly.

And much more…

Resources and Links Mentioned In The Show:

Click here for Wade's RetirementResearcher.com web site.

Dave Ramsey's 8% Safe Withdrawal Rate article on RetirementResearcher.com

Dave Ramsey's website

My retirement calculator for running the calculations.

My book teaching how much money you need to retire with financial security.

Help Out the Show:

I'm very excited to announce this first episode of the new Financial Mentor podcast. You can now expect 2 episodes per month designed to help you build financial wealth and live a wealthy life. Each episode will be packed with data driven insights and unconventional wisdom.

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Thanks for your support and I hope you enjoyed this episode. Please let me know what you think in the comments below…

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