Retirees obsess over the exact safe withdrawal rate they think they'll need while simultaneously building layer after layer of backup plans. Dividends, buckets, multiple years of cash, constant Monte Carlo recalculations are all done in the name of safety.

Jordan Grumet's argument to this problem is simple and provocative: If you believe in the safe withdrawal rate, then act like it. Stop stacking contingencies on top of contingencies and chasing 100% certainty in a world where it doesn't exist.

We go over Jordan's article "Stop Chickening Out" in our headline segment.

Then we answer Robert's question: "What if you just use the Traditional IRA for living expenses instead? If both approaches reduce the IRA balance and lower future RMDs, is Roth conversion strategy overhyped?"

And we wrap up the show with a story from one of our happiest retired listeners in our newest listener-sourced segment "Retire to Something".

Resources:

Article: "Stop Chickening Out" by Jordan Grumet
Jordan Grumet interview on our show: https://retirementstartstodayradio.com/purpose-vs-purpose-an-interview-with-doc-g-ep-382

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

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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Sheryl Rowling from Morningstar argues that the greatest danger in retirement isn't the stock market — it's the constant fear of running out of money.

We will walk through her eight "anchors" from the article posted on Morningstar.

Anchor 1: Confirm Your Sustainable Spending Level
Anchor 2: Embrace Flexibility in Down Markets
Anchor 3: Recognize That Spending Often Declines With Age
Anchor 4: Create a Recession Buffer
Anchor 5: Reduce Future Tax Uncertainty
Anchor 6: Maximize Guaranteed Income
Anchor 7: Protect Against Long-Term Care Costs
Anchor 8: View Home Equity as a Backstop

For our listener question: I've said before that accumulation is the easy part - and distribution is harder. But Kevin wrote in to say "wait a second… don't prices move around when you're buying or selling? So what's the real difference?" We're going to unpack why dollar-cost averaging on the way in is not the same thing as sequence risk on the way out — and why that distinction matters once you're living off the portfolio.

And to wrap up the show, we'll hear from Bernie about how he is blending service & fun for an even better retirement.

Resource:

Article by Sheryl Rowling in Morningstar: 8 Tips to Stop Worrying About Running Out of Money in Retirement

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

What does research say about retirement withdrawal strategies that are specifically designed to leave more money behind? We'll walk through what the research says works best, the trade-offs involved, and why the "right" strategy depends on what you're really trying to optimize in retirement.

Quote: "Smaller gifts sooner can be more impactful than larger gifts later." - Benjamin Brandt

We've also got a great listener question from Tom about the three big company retirement plans — 401(k)s, 403(b)s, and 457s. On the surface they all look the same, but the rules under the hood are very different, and those differences can have a huge impact on taxes, flexibility, and when you can actually use your money. We'll break down what "qualified" really means, which accounts may be easier to tap earlier, and how to think about simplifying all of this as you head into retirement.

And we wrap up the episode with what our happiest retired listeners are up to in our "Retire to Something" segment.

Article:

The Best Retirement Strategies for Leaving Money Behind by Amy C. Arnott, CFA in Morningstar

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