Originally aired April 2024:

It may be easy to define success in your working career, but defining success in retirement can be more difficult. What does success look like in retirement? What will you do daily or weekly to get the most out of your retirement?

In this episode of Retirement Starts Today, we’ll explore a TEDx talk about the 4 phases of retirement that many (but not all) experience. Click play to hear how you can squeeze the most juice out of your retirement.

For more information, visit the show notes at https://retirementstartstodayradio.com/the-4-phases-of-retirement-rebroadcast 

Originally aired February 2024:

You’ve heard of the 4% rule, and if you’ve listened to this podcast before, you’ve heard of Guyton’s guardrails strategy. But have you ever heard of using them together? Today’s retirement headline explores this idea.

Overall, the article highlights the importance of considering sequence-of-returns risk in retirement planning and adopting flexible strategies, such as guardrails, to ensure financial security throughout retirement.

Listen in to learn more about this combination of strategies as well as my opinion on the matter. Then stick around for the listener question segment where Bret and I answer the question: Do I need a will if I want to split my assets evenly between my two children?

Outline of This Episode

(02:11) Sequence of returns risk is the greatest risk to your retirement (14:49) Should I have a will to split my assets evenly between my kids?

For more information, visit the show notes at https://retirementstartstodayradio.com/using-guardrails-for-the-4-rule-rebroadcast 

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

Pre-order Benjamin's book by January 7, 2025:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart

 

Originally aired June 2024:

The 4% rule is the “golden rule” of retirement planning. Everyone is familiar with it and it’s easy to work out for some quick, back-of-the-napkin math.

Since it is so easy to calculate and implement, many use it as their retirement withdrawal rule. However, this approach may be overly conservative. While using a significantly higher withdrawal rate may go too far, the 4% rule may be too cautious.

Listen in to hear the limitations of sticking with this overly simplistic rule of thumb.

Outline of This Episode

• (2:25) Is the 4% rule too safe?
• (11:16) Does it make sense to spend more in the early years while awaiting full retirement age?

The pitfalls of the 4% rule

Oftentimes, people fail to take into account other income sources when calculating the 4% rule. Social Security and pensions may provide a base income floor which means you could use a higher withdrawal rate from your portfolio.

My biggest problem with the rigid 4% rule is that it isn’t flexible enough. The 4% rule doesn’t allow for spending flexibility and ignores spending adjustments that could be made on actual needs and circumstances.

Another reason to avoid this stringent rule is that it doesn’t fully evaluate outcomes. The probability of success should be viewed as a spectrum. This approach will help measure the total amount of the goal achieved each year providing a more nuanced understanding of retirement readiness.

What to do instead of relying on the 4% rule

Incorporating more realistic metrics, such as goal completion and spending flexibility can lead to higher optimal spending levels. Based on this updated perspective, a 5% withdrawal rate may be more appropriate for the average retiree over a 30-year retirement period.

However, the ideal rate depends on various factors, including the retiree’s specific circumstances and goals.

Recent research introduces guided spending rates, where the withdrawal rate adjusts based on an individual’s flexibility and retirement duration, ranging from 10 to 40 years. Increasing the withdrawal rate from 4% to 5% may seem modest, but it represents a 25% increase in potential income, offering retirees more discretionary funds earlier in retirement when they are more active.

Finding the right withdrawal rate is about balancing safety and practicality. A more dynamic approach that reflects individual circumstances and the ability to adjust spending is essential for effective retirement planning.

In conclusion

The 4% rule is a great rule of thumb based on a worst-case scenario, however, it isn’t comprehensive enough to create a fully-fledged retirement plan.

Your retirement income plan needs to be adjusted based on your spending level, market performance, and inflation. To simply set your income source one day at the beginning of retirement and never look back is a foolhardy endeavor. There is no way that you could accurately plan the next 30 years of your life. Flexibility is key for planning your spending in retirement.

 

Resource Mentioned

• Think Advisor article

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

 

Pre-order Benjamin's book by January 7, 2025:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart

You’ve been accumulating your savings your entire life, but when the time comes to draw down your investments, there are new risks. In this episode, we’ll discuss four risks that come with the decumulation phase of retirement. 

Press play to learn how to avoid these risks in retirement. 

Are you looking for a new advisor? One of our listeners is looking for a checklist to help him hire a retirement advisor. While answering that question I went ahead and made my advisor checklist available to all of you to download here.

Outline of This Episode

[1:47] Understand effective strategies for the decumulation phase [11:20] Do I have a checklist to use to hire a retirement advisor? 

Resources Mentioned

• The Retirement Podcast Network
• Questions to ask a retirement advisor

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

Pre-order Benjamin's book by January 7, 2025:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart

 

Ready to learn how to make a lasting and meaningful legacy for your loved ones? I had an in-depth conversation with Myra Salzer from the Wealth Conservancy. Myra brings a unique perspective as a financial advisor who specializes in helping clients navigate life after inheriting significant wealth. We explore not just the financial implications but the deeply personal challenges that can come with inheriting a fortune.

Myra shows us how inheritors are similar to retirees in that both are financially independent, yet they differ significantly in their experiences. Unlike retirees who have worked, saved, and planned, many inheritors have never experienced earning and managing money themselves. This usually leads to a lack of control over their finances, emotional challenges, and pretty complex social relationships. 

We also get into the importance of transparency and avoiding surprises when planning an inheritance. Myra shares invaluable advice on how wealthholders can communicate with beneficiaries to build trust and strengthen relationships. For those of us planning to leave a financial legacy, this conversation is a must-listen to ensure that our wealth becomes a true blessing for future generations. 

Outline of This Episode

• [0:20] Meet Myra Salzer
• [1:18] Myra’s specialty
• [3:05] Inheritors’ limited control
• [4:48] Differences between inheritors and retirees
• [6:00] Social challenges where inheritors often struggle
• [8:20] Avoiding surprises in inheritance planning
• [14:00] The value of smaller, meaningful gifts

Resources & People Mentioned

• The Retirement Podcast Network
• Book: Die with Zero

Connect with Myra Salzer

• Myra’s Website - The Wealth Conservancy
• Myra’s YouTube Channel
• The Inheritor’s Sherpa

Connect with Benjamin Brandt

• Become a Client: www.retirementstartstoday.com/start
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Join the newsletter: https://retirementstartstodayradio.com/newsletter
• Go deeper into retirement planning with Ben at www.RetirementIncome.University

Pre-order Benjamin's book by January 7th:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart

 

In this episode, we step away from our usual financial discussions to share personal stories from our military service. Why? To give listeners a glimpse of who we are beyond our roles as financial advisors—so we opened up about how our time in the service shaped our lives. 

Bret shares his experience working in logistics and on the flight line in the Air Force, while I discuss my years as a combat engineer in the Army National Guard. We both reflect on how those experiences influenced our paths and continue to impact our work today.

Bret talks about his five years of active duty and four years in the reserves, highlighting memorable assignments from Korea, Guam, and Germany, and sharing humorous tales about managing logistics and hazardous materials. 

I share stories of my time in Iraq, from conducting mine detection patrols to the lessons learned during long days in a tent. Our service stories illustrate how those years instilled lessons that we now apply to our roles as financial planners.

We close the episode with some actual advice on how to give financial gifts to loved ones in a tax-smart way. This special Veterans Day episode honors the holiday by sharing how our military experiences have shaped us and reminding listeners of the lasting impact service can have.

Outline of This Episode

• [0:32] Why are we pausing our financial talk to share our military stories?
• [1:36] What was Bret’s role in the Air Force, and how did it shape his journey?
• [3:40] Which memorable places did Bret serve, and what did he learn?
• [7:00] How did my role as a combat engineer lead to unexpected experiences?
• [8:50] What connections can we draw between military service and advising?
• [14:17] How can you give cash or assets to loved ones in a tax-efficient way?
• [19:10] Final thoughts on recognizing veterans and what their service means

Resource Mentioned

• The Retirement Podcast Network

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

Pre-order Benjamin's book by January 7th:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart

 

Investing in health can lead to a more vibrant, enjoyable retirement. In this episode, I share the personal health investments I've made, like sleep tracking and working with a health coach, each designed to enhance well-being and longevity. Prioritizing health alongside wealth allows us to fully embrace retirement.

I detail four key health tools, each with its own costs and benefits. From the Whoop Strap for monitoring sleep quality to MyFitnessPal for tracking nutrition, these tools help create a healthier lifestyle. My biggest investment was a full-body MRI, providing peace of mind and preventive insights—sometimes, the best financial choice is a health choice.

To finish, Brett and I answer a listener's question on Roth conversions, covering the best timing to optimize tax efficiency and avoid penalties. This episode offers practical advice for a health-focused, financially savvy retirement. 

Outline of This Episode

• [0:27] Nine-Year Milestone and Book Announcement
• [2:30] The Importance of Investing in Health
• [4:17] Wearable Tech: The Whoop Strap
• [6:10] Health Coaching and Nutrition Tracking
• [8:08] Long-Term Investment in a Full-Body MRI
• [13:06] Listener Question: Optimal Timing for Roth Conversions

Resources & People Mentioned

• The Retirement Podcast Network
• Whoop Strap – Wearable device for tracking recovery and sleep quality
• MyFitnessPal Premium – Nutrition and macro tracking app
• Prenuvo – Provider of full-body MRI scans
• Peter Diamandis and Fountain Life – Inspiration for full-body MRI screenings

Connect with Benjamin Brandt

• Become a Client: www.retirementstartstoday.com/start
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Join the newsletter: https://retirementstartstodayradio.com/newsletter
• Dive deeper into retirement planning with Ben at www.RetirementIncome.University

Subscribe to Retirement Starts Today on

Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Are you feeling rattled by Required Minimum Distributions (RMDs)? We’re here to help. Today we get deep into managing RMDs as we explore an article by Pam Krueger from Kiplinger’s. I outline the complexities of RMDs, share strategies to minimize tax impacts, and talk about how to craft a "perfect RMD" strategy. Plus, I’ll dig into why so many retirement podcasters, myself included, have no plans to retire themselves.

We kick things off by understanding the basics of RMDs, including when and how retirees must start withdrawing funds from tax-deferred accounts like IRAs and 401(k)s. I share exactly how the timing of RMDs, starting at age 73 (or potentially later under new laws), can have huge tax implications. I also detail strategies to minimize taxes through Qualified Charitable Distributions (QCDs) and preemptive withdrawals.

And of course, co-host Bret Mulvaney and I respond to a listener's intriguing question: why don’t retirement podcasters retire? 

Outline of This Episode

• [00:22] Tax Month and RMDs Overview
• [02:10] Age Changes and Future Implications
• [08:00] Strategies for a “Perfect RMD”
• [16:10] Why Retirement Podcasters Don’t Retire
• [21:30] Life Fulfillment through Financial Planning

Resources & People Mentioned

• The Retirement Podcast Network
• Kiplinger’s article by Pam Kruger: “Rattled by RMDs? Look No Further.”
• Retirement Starts Today Tax Tool: retirementstartstoday.com/tax
• Secure 2.0 Act details

Connect with Pam Krueger

• https://www.kiplinger.com/author/pam-krueger

Connect with Benjamin Brandt

• Become a Client: www.retirementstartstoday.com/start
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Join the newsletter: https://retirementstartstodayradio.com/newsletter
• Dive deeper into retirement planning with Ben at www.RetirementIncome.University

Subscribe to Retirement Starts Today on

Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Are you sure you're making the right call when deciding between Roth and traditional retirement accounts? A recent article on the Michael Kitsis blog started a debate into why, during your peak earning years, contributing to traditional pre-tax accounts might actually make more sense—even if tax rates rise in the future. 

I’m going to break down why high-income earners can often benefit more from deferring taxes now and paying them later in retirement when they have more control over their income.

I’ll explain how using tax deductions at your highest earning years and withdrawing funds at lower tax rates in retirement can save you a significant amount in taxes over time. It’s all about maximizing your flexibility and finding opportunities to lower your tax burden down the road. 

Outline of This Episode

• [0:20] Why are pre-tax contributions better during peak earning years?
• [0:52] How can retirees better control income and taxes after retiring?
• [5:00] What’s the key tax strategy difference between Roth and traditional?
• [6:10] Why take deductions at high income and realize them later?
• [9:20] How do tax rate changes affect Roth vs. traditional choices?
• [12:08] Why is avoiding future "tax tidal waves" crucial for savers?
• [13:20] What life events can raise taxes, even without rate hikes?
• [14:50] How do traditional accounts allow for smart Roth conversions?
• [15:20] Why should retirees focus on tax flexibility now?

Resources & People Mentioned

• The Retirement Podcast Network
• Michael Kitces Blog: The article titled "Why Pre-Tax Contributions Are Better Than Roth in Peak Earning Years, Even If Tax Rates Increase" by Ben Henry-Moreland.
• Retirement Tax Quiz Tool: Available at retirementstartstoday.com/tax
• Ben Henry-Moreland’s articles

Connect with Benjamin Brandt

• Become a Client: www.retirementstartstoday.com/start
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Join the newsletter: https://retirementstartstodayradio.com/newsletter
• Dive deeper into retirement planning with Ben at www.RetirementIncome.University

Subscribe to Retirement Starts Today on

Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

What could happen to our taxes if the 2017 Tax Cuts and Jobs Act (TCJA) expires in 2025? This week, we explore a Wall Street Journal article analyzing the TCJA’s potential expiration and its varied impacts across the U.S. from coast to coast. 

These tax cuts, enacted under President Trump, included reductions across multiple income brackets, increased standard deductions, and expanded child tax credits. However, when they’re set to expire, the shift could mean substantial tax hikes for many households.

The discussion centers on the unique impact of these changes in different regions, showing how factors like income levels and state taxes could influence the extent of the increase.

Outline of This Episode

• [0:20] What happens if the 2017 tax cuts expire?
• [3:00] Impact of the TCJA’s expiration on different regions
• [4:47] Where tax increases will be highest
• [5:45] Bay Area faces double pressure
• [6:05] Retirees in Collier County, Florida, brace for tax changes
• [7:50] Rural areas face modest tax impacts
• [12:21] Listener Question: Social Security & retirement timing

Resources & People Mentioned

• The Retirement Podcast Network
• Where Taxes Would Rise the Most if Trump’s Tax Cuts Expire
• Retirement Starts Today Tax Tool: retirementstartstoday.com/tax

Connect with Benjamin Brandt

• Become a Client: www.retirementstartstoday.com/start
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Join the newsletter: https://retirementstartstodayradio.com/newsletter
• Dive deeper into retirement planning with Ben at www.RetirementIncome.University

Subscribe to Retirement Starts Today on

Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify