Most traditional retirement plans in the past were created by making a projection that has taken into account assumptions around inflation, rates of return, and longevity and putting it all together to see if there is money left over to last you the remainder of your life. Although this is a good starting point, it doesn’t take into account any unforeseen circumstances. In this episode, I will be sharing some other methods retirement planners are using these days to create a safer outcome for your retirement.
Listen in to learn how the Monte Carlo method works, how to ensure you’re maximizing your retirement income, and why it’s important to take into account the risk of longevity. Every individual’s financial situation is different, so it is important to remember that not every rule out of the retirement planning handbook will work for you, but this will be a good start.
What You’ll Learn In Today’s Episode:
- What the safe withdrawal rate is.
- How the 4% rule works.
- What a fixed percentage withdrawal is.
- How to make more informed decisions about how much to take out of your portfolio.
- The importance of understanding that every financial situation is different.
- When the worst time to retire would have been.
- How to use the Monte Carlo method.
Ideas Worth Sharing:
“More often than not, the 4% rule could be too conservative for a 30-year retirement.” – Joe Curry
“Running a Monte Carlo analysis through real-world scenarios can give you some confidence that you will probably be okay for your retirement.”- Joe Curry
“You might not be taking out as much money as you could be if you had a plan for when to adjust if markets weren’t going as planned.” – Joe Curry
Resources In Today’s Episode:
- Joseph Curry: LinkedIn
- Financial Advisor Success Ep 198: How The Creator Of The 4 Percent Rule Applied It For His Clients And His Own Retirement, With Bill Bengen
- Experts say the 4% rule, a popular retirement income strategy, is outdated
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.