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

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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:

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

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Is there an ideal level of wealth? Our Retirement Headline comes from Nick Maggiulli, who starts by rejecting the usual vague answers—"it depends," "on your own terms," or "whatever makes you happy." Instead, he tries to give a practical, math-based answer that works for most people, even if it's not perfect for everyone.

Then our listener question is "How should we think about future income sources—like Social Security and pensions—in terms of our net worth? Should we include the present value of that income?"

Finally, in our "Retire to Something" segment, we're learning from an anonymous HR manager that is deploying their skillset in a totally new way in retirement.

Resource:

Article by Nick Maggiulli in Of Dollars & Data: The Ideal Level of Wealth

Connect with Benjamin Brandt:

• Subscribe to the This Week in Retirement: http://thisweekinretirement.com
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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Andrew Rosen, CFP®, CEP, writes in a Kiplinger article how to walk through several common reasons people keep working — even as retirement comes into view.

Rather than looking at money first, the author looks at motivation and breaks it into five broad categories:

Category 1: I must keep working
Category 2: I probably should keep working
Category 3: I want to keep working
Category 4: I'm afraid to retire
Category 5: I don't know why I'm still working

The author suggests borrowing from a concept by Artiste called "First Principles Thinking". Listen in for the answer.

Also, our listener Maria asks about the timing of your first RMD (Required Minimum Distribution): "If we want to skip our 1st RMD and take two the following year, how does that work?"

Resource:
Article by Andrew Rosen, CFP® in Kiplinger's "Why Are You Still Working?"

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Can you relate to this statement: "They've done everything right financially… but still can't bring themselves to spend the money they've saved."

In today's Retirement Headline, Meghaan Lurtz explains why underspending in retirement is usually rooted in psychology, not math.

Lurtz shares several common barriers:

• Fear of future dependence
• Doom forecasting
• And an Identity tied to being a saver

Resource:

• Article by Meghaan Lurtz: "Helping Underspenders And "Savers" Understand They CAN Spend More With 4 Stages Of "Experiments"

Listener question:
"If I plan to retire at 65 1/2 or 66 and sign up for Medicare before 65 - but not for Parts B and D (because of my employer provided insurance) - will I have to pay a penalty to get Parts B and D (and Supplements) at a later date when I actually retire?"

Listen in to learn about creditable coverage and how penalties can stack up on themselves.

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"Just 10% plan to wait until age 70" to claim Social Security in retirement — and it's not because of a knowledge problem.

We discuss this from a new survey that suggests most Americans may be claiming Social Security earlier than is financially optimal because fear is driving the decision. They understand the math—but they're still claiming early.

We also answer a listener 2-part question about where to park short-term cash in inflationary times and to actually buy Treasuries.

And we wrap up the segment to bring you our newest segment from you, the audience: "Retire to Something". If you'd like to share your story about what you are retiring "to", simply look for the link in the new "This Week in Retirement Newsletter" and fill out the super-quick form.

• Subscribe to the This Week in Retirement: http://thisweekinretirement.com
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Paul Morrison details how Medicare premiums, including the IRMAA surcharge, are inflating at a rate higher than Social Security COLAs. This disparity is causing concern, as premiums can potentially consume a retiree's entire Social Security benefit over time, especially for those in higher IRMAA brackets for an extended period.

Paul provides concrete examples of how extended periods in higher IRMAA brackets could lead to Medicare premiums exceeding Social Security benefits, forcing retirees to pay out-of-pocket.

Resources:

Contact Paul Morrison: paul@irmaacertifiedplanner.com
Website: irmaacertifiedplanner.com

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