Retirement Starts Today

Chris Heye makes the case in a Journal of Financial Planning article that the two retirement risks we obsess over might not be the two most likely to derail us. There are four risks in play, and the two nobody models are the ones quietly doing the most damage:
Longevity Risk
Market Risk
Health Risk
Decision Risk
I go into depth on those last two.
In our Listener Question, a 69-year-old retired engineer and do-it-yourselfer asks about setting up my plan for his wife who's just not into dollars and cents.
And in our Retire To Something segment: Debbie shares her "One Year Sabbatical" — and how she gives herself permission to figure out her purpose along the way.
Resource: 
Article by Chris Heye, Ph.D. in the Journal of Financial Planning: Beyond Sequence of Returns: The Four Risks to Retirement Security

 
 
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Inflation again? Christine Benz over at Morningstar has three questions that tell you exactly how exposed you are - and how much retirees worry about inflation.
Then, a listener question from someone one year into retirement who says their pension check feels like it just shrank ten percent - and what they might do to remedy that. 
And in our Retire To Something segment, Linda from Ontario, Canada, wanted a job at a cheese shop that wasn't hiring — and she applied anyway.
Resources:
Morningstar article by Christine Benz: How Much Should Retirees Worry About Inflation?
Christine Benz book: How to Retire: 20 lessons for a happy, successful, and wealthy retirement
 
Connect with Benjamin Brandt:
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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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If you've been anywhere close to a retirement podcast over the last 10-20 years, you've heard of the 4% rule. And like many people, you might have questions about it.
We're going to hear about it directly from the horse's mouth as we talk to Bill Bengen, who first articulated the 4% withdrawal rate as a rule of thumb for withdrawal rates from retirement accounts.
The 4% rule is not a rigid rule but a guideline. Its application requires careful consideration of individual factors, including health, life expectancy, and specific financial circumstances. Bengen encourages retirees to tailor their withdrawal strategies based on their unique situations. Our discussion also explored required minimum distributions (RMDs), which may necessitate higher withdrawals in later years of retirement. However, Bengen suggests that for most people, RMDs would not exceed the calculated withdrawal rates until a very advanced age, making the two compatible.
Core Points:
The 4% rule, initially a worst-case scenario calculation, suggests a 4% annual withdrawal from retirement savings. This has since been refined
Research indicates a more generous 4.7% withdrawal rate is now possible due to portfolio diversification and lower investment costs
Higher withdrawal rates might be feasible (5-5.5%), depending on market valuations and inflation
Early retirement withdrawal timing significantly impacts long-term success
Consider individual circumstances, market conditions, and inflation when adjusting withdrawal strategies
 
Resource:
Bill Bengen's book, "A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More" https://www.bengenfs.com/order-my-book
 
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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Fritz Gilbert says the adage that "Retirement is a marathon, not a sprint" is backwards. He cites an average age where health starts to decline is 64, so sprinting in those first few years when the average retiree is 61-63 makes sense.
We will dig into that idea, then follow it up with a listener who can't get her husband to think about anything but saving money.
 
Resource:
Article by Fritz Gilbert: Retirement is a Sprint, Not a Marathon
 
Connect with Benjamin Brandt:
Subscribe to the This Week in Retirement: http://thisweekinretirement.com
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Work with Benjamin: https://retirementstartstoday.com/start
Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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The fear of running out of money in retirement turns out to be mostly backwards. For super-savers, the data says the opposite usually happens. A piece from Danielle Labotka at Morningstar makes the case that for a lot of retirees: Being too cautious with your spending is actually the bigger risk. 
In our listener question segment: Anonymous wants to give money to her kids with warm hands, not cold. How much you can safely give today without putting your own retirement at risk?
And then we'll wrap up with our Retire To Something segment: Dabbling in a little of everything.
Resources:
Article by Danielle Labotka at Morningstar: Is Your Cautious Retirement Spending Doing More Harm Than Good?
Book by Bill Perkins: Die With Zero: Getting All You Can from Your Money and Your Life
 
Connect with Benjamin Brandt:
Subscribe to the This Week in Retirement: http://thisweekinretirement.com
Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
Work with Benjamin: https://retirementstartstoday.com/start
Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:
Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart