There are many uncertainties that make calculating retirement spending an educated guess at best – many of which we have covered in previous episodes. You want the flexibility to spend as much as you need in retirement, while also feeling secure enough in your funds that you know you won’t run out of money halfway through your golden years. So, in this episode, I am going to be explaining dynamic withdrawal strategies which are designed to change annual retirement distributions based on actual market performance, to prevent you from under or overspending.
Listen in as I share how using dynamic withdrawal strategies can actually help you take out a larger amount of money at the beginning and several ways to implement a dynamic withdrawal strategy into your retirement plan. You will learn what the Guyton-Klinger Rule is, how to make adjustments with inflation and how to increase your probability of success.
What You’ll Learn In Today’s Episode:
- Why dynamic withdrawal strategies are generally safer.
- How dynamic withdrawal strategies work.
- The downfall of using a more traditional safe withdrawal strategy.
- What ratcheting the 4% rule means.
- How to utilize the Guyton-Klinger Rule.
- The benefit of having guardrails in place.
- Why clients like dynamic withdrawal strategies.
- When the worst time was to retire.
Ideas Worth Sharing:
“Retirees like a dynamic withdrawal strategy because it is a transparent, rule-based plan to follow in good times and bad.” – Joe Curry
“Inflation can have a pretty substantial impact on your success rates in retirement.” – Joe Curry
“Most retirees will not keep their spending up with inflation throughout retirement.” – Joe Curry
Resources In Today’s Episode:
- Joseph Curry: LinkedIn
- Derek Tharp on Probability of Success Guardrails
- Guyton-Klinger Guardrails Paper
If you like Your Retirement Planning Simplified…
Whenever you’re ready… here are 2 ways I can help you with your Retirement Planning:
- Are you ready to retire? Use my FREE Retirement Readiness Calculator to run your numbers to see if you’re truly ready to retire.
- Book your Intro Call with me to see if my expertise matches your situation. If I’m not the right fit for you, I will happily point you in the right direction to get the advice you need.