In this episode of Ready for Retirement, James discusses how withdrawal rates should change if you don’t have any legacy goals.
Questions Answered:
- How can you plan most effectively for your legacy goals (or lack thereof)?
- What should you consider in terms of withdrawing funds and your goals?
- How can you ensure you reach your retirement goals?
We’re on YouTube!
Check us out here for more content to help you create a secure retirement: YouTube – Root Financial Partners
Summary:
Today we’re diving into understanding how your withdrawal rates should change if you don’t have any legacy goals
The world of retirement planning is vast, and you may have many different goals and those should be taken into consideration when it comes to your withdrawal rates.
Key Takeaways:
- Traditional withdrawal rates were not researched and determined to maximize legacy, but lifetime income.
- Create a plan that plans for your withdrawal goals, not your friends/neighbors/coworkers!
- Can you increase your withdrawal rate as you age?
If you want to learn how to organize your financial situation, you’re going to love this episode.
Timestamps:
4:00 – Traditional Withdrawal Rates
8:14 – Annuity Example
14:10 – USing Real Estate
16:57 – Social Security
19:02 – Increasing Spending Without Running Out Of Money
Connect with us:
Subscribe to our YouTube channel: www.youtube.com/c/RootFinancialPartners
Visit our website: www.rootfinancialpartners.com
Follow us on Instagram: www.instagram.com/rootfinancialpartners
Connect with us on Facebook: www.facebook.com/rootfinancialpartners
Resources:
Great discussion. I appreciate your talking thru your thinking without telling me what the right answer for me is.
I’m 59 and retired.
Currently my legacy goals are leaving my debt free home. Most of the rest, if any, will be given away. I actively seek to create legacy now.
To balance longevity risk with the risk of underspending I do two calculations.
1) I calculate net worth (excluding the home) and calculate the rmd for my current age.
2) I take my wife’s life expectancy and average it with 120 to provide a buffer. Then look up the payout for an immediate joint annuity like you described in the podcast.
I then take the lower of those two numbers as my income for the year. What I don’t need is divided between savings for bigger expenditures, contributions to charity, and gifting to family (much more enjoyable to do while alive!)