In this episode of Decoding Retirement, Robert "Bob" Powell interviews retirement planning expert Wade Pfau to discuss key strategies for ensuring financial security in retirement. They explore the importance of calculating a funded ratio, managing risks like longevity and inflation, and recent policy changes affecting Social Security and inherited IRAs.
Find out everything you need to know about your time horizon, and why you shouldn't inundate yourself with short term news.
Retirement planning doesn’t mean locking up your money for a rainy day and forgetting about it. Planning your future means reacting to events today. Decoding Retirement gives you the tools to navigate the years ahead, and take action now! Each week, Robert 'Bob' Powell will dissect the big headlines, decode key themes, and unpack the possible domino effect for your money. When it comes to retirement planning, Robert Powell and Yahoo Finance will not let you fall behind!
Find this episode and more episodes of Decoding Retirement at https://finance.yahoo.com/videos/series/decoding-retirement.
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4:19 – “The biggest question people have leading up to retirement is: Do I have enough? Here’s a simple three-step framework to find out.” (Introduction to the four L’s and funded ratio)
7:15 – “How do you allocate your assets to cover essential, discretionary, and unexpected expenses in retirement?” (Breakdown of reliable income, diversified portfolio, and reserves)
9:50 – “If your funded ratio is below 100%, here’s what you need to do right now to get back on track.” (Advice on working longer, reducing expenses, or adjusting investments)
17:02 – “Longevity is a double-edged sword—it’s great to live longer, but financially, it’s expensive. Here’s how to prepare.” (Managing the risk of outliving assets)
22:10 – “Health care shocks are one of the biggest fears in retirement. How do you plan for something that may or may not happen?” (Discussion on self-funding vs. insurance for long-term care)
28:39 – “With rising interest rates, retirees now have better options. The 4% rule isn’t dead—it's actually closer to 4.6% now.” (Impact of higher interest rates on sustainable withdrawals)
Yahoo Finance's Decoding Retirement is hosted by Robert Powell, and produced by Austin Rivera.
Robert Powell holds several prominent positions within the financial industry. He serves as the editor-in-chief of the Investments and Wealth Institute's (IWI) Retirement Management Journal, the world's first peer-reviewed journal solely dedicated to retirement income. He also hosts the Exceptional Advisor podcast by IWI. Powell is both a Certified Financial Planner® and Retirement Management Adviser® certificant.
Wade D. Pfau, PhD, CFA, RICP® is the founder of Retirement Researcher, an educational resource for individuals and financial advisors on topics related to retirement income planning. He is a co-founder of the Retirement Income Style Awareness tool and a co-host of the Retire with Style podcast. He also serves as a principal and the director of retirement research for McLean Asset Management.
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