The Rational Reminder Podcast | Retiring Retirement Income Myths with the Retirement Income Dream Team | Rational Reminder 289 @rationalreminder | Uploaded January 2024 | Updated October 2024, 15 hours ago.
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Does the 4% rule still work? In this episode, we welcome three esteemed experts to counter a recent controversial claim made on the Dave Ramsey Show regarding the validity of the 4% rule in retirement planning. Joining us is David Blanchett; the Managing Director and Head of Retirement Research for PGIM DC Solutions, Michael Finke; a distinguished professor of wealth management at the American College of Financial Services, and Wade Pfau; Director of Retirement Research at McLean Asset Management. In our conversation, these experts shed light on the intricate world of retirement income planning, dispelling misconceptions and advocating for a more nuanced approach. Discover the flaws in Ramsey's assertion and explore the dynamics of sequence of return risk in retirement planning. Unpack the complexities of investing in bonds for retirees and the evolving risk profiles of stocks over varying investment horizons. We also uncover the significance of variable spending rates, debunk the fallacies behind aggressive withdrawal suggestions, a safety-first approach in retirement finance, and much more. Tune in for an enlightening journey through retirement planning and equip yourself with expert insights to pave a secure path for your financial future!
RISA Profiler: risaprofile.com/rationalreminder
Timestamps:
0:00:00 Intro
0:08:23 Why it was decided to respond to Dave Ramsey’s claim that 8% is a safe retirement spending rate
0:10:57 What Ramsey gets wrong about retirement math to justify his 8% spending claim
0:16:47 How important sequence risk is to how investors fund their retirement consumption
0:24:17 How the risk of being in stocks changes at long horizons vs. short horizons
0:26:46 How subjective risk tolerance changes with short-term market fluctuations
0:39:26 Thoughts about Dave Ramsey’s suggestion that the 4% rule is just too depressing
0:48:03 How much dynamic spending strategies improve the initial withdrawal rate
0:52:19 How much variability in income investors need to be prepared for with dynamic spending strategies
0:55:49 When people should be looking past traditional investments and toward other products, like annuities
1:09:02 How impactful the idea of deferring government pensions is
Links From Today’s Episode:
Michael Finke — michaelfinke.com/home.html
Michael Finke on X — twitter.com/finkeonfinance
Michael Finke on Facebook — facebook.com/mfinke
The American College of Financial Services — https://www.theamericancollege.edu/
David Blanchett — davidmblanchett.com
David Blanchett on X — twitter.com/davidmblanchett
David Blanchett on LinkedIn — linkedin.com/in/david-blanchett-b0b0aa2
PGIM DC Solutions — pgim.com/dc-solutions
Wealth, Managed Podcast — https://www.theamericancollege.edu/knowledge-hub/wealth-managed-podcast
Wade Pfau — retirementresearcher.com/wade-pfau
Wade Pfau on LinkedIn — linkedin.com/in/wpfau
Wade Pfau on X — twitter.com/WadePfau
McLean Asset Management — mcleanam.com
Retire With Style Podcast — risaprofile.com/retire-with-style
Alliance for Lifetime Income — protectedincome.org
Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — rationalreminder.ca/podcast/89
Episode 137: David Blanchett: Researching Retirement — rationalreminder.ca/podcast/137
Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — rationalreminder.ca/podcast/254
The Ramsey Show — youtube.com/@TheRamseyShowEpisodes
The Ramsey Show: You Can’t Win With Money if You Don’t Know Where Your Money Is — youtube.com/watch?v=Xg4Z8EQY3Ao
‘Supernerds Unite Against Dave Ramsey’s 8% Safe Withdrawal Rate Guidance’ — thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance
Jason Fichtner — bipartisanpolicy.org/person/jason-j-fichtner
‘The Value of Delayed Social Security Claiming for Higher-Earning Women’ — dx.doi.org/10.2139/ssrn.3849653
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Does the 4% rule still work? In this episode, we welcome three esteemed experts to counter a recent controversial claim made on the Dave Ramsey Show regarding the validity of the 4% rule in retirement planning. Joining us is David Blanchett; the Managing Director and Head of Retirement Research for PGIM DC Solutions, Michael Finke; a distinguished professor of wealth management at the American College of Financial Services, and Wade Pfau; Director of Retirement Research at McLean Asset Management. In our conversation, these experts shed light on the intricate world of retirement income planning, dispelling misconceptions and advocating for a more nuanced approach. Discover the flaws in Ramsey's assertion and explore the dynamics of sequence of return risk in retirement planning. Unpack the complexities of investing in bonds for retirees and the evolving risk profiles of stocks over varying investment horizons. We also uncover the significance of variable spending rates, debunk the fallacies behind aggressive withdrawal suggestions, a safety-first approach in retirement finance, and much more. Tune in for an enlightening journey through retirement planning and equip yourself with expert insights to pave a secure path for your financial future!
RISA Profiler: risaprofile.com/rationalreminder
Timestamps:
0:00:00 Intro
0:08:23 Why it was decided to respond to Dave Ramsey’s claim that 8% is a safe retirement spending rate
0:10:57 What Ramsey gets wrong about retirement math to justify his 8% spending claim
0:16:47 How important sequence risk is to how investors fund their retirement consumption
0:24:17 How the risk of being in stocks changes at long horizons vs. short horizons
0:26:46 How subjective risk tolerance changes with short-term market fluctuations
0:39:26 Thoughts about Dave Ramsey’s suggestion that the 4% rule is just too depressing
0:48:03 How much dynamic spending strategies improve the initial withdrawal rate
0:52:19 How much variability in income investors need to be prepared for with dynamic spending strategies
0:55:49 When people should be looking past traditional investments and toward other products, like annuities
1:09:02 How impactful the idea of deferring government pensions is
Links From Today’s Episode:
Michael Finke — michaelfinke.com/home.html
Michael Finke on X — twitter.com/finkeonfinance
Michael Finke on Facebook — facebook.com/mfinke
The American College of Financial Services — https://www.theamericancollege.edu/
David Blanchett — davidmblanchett.com
David Blanchett on X — twitter.com/davidmblanchett
David Blanchett on LinkedIn — linkedin.com/in/david-blanchett-b0b0aa2
PGIM DC Solutions — pgim.com/dc-solutions
Wealth, Managed Podcast — https://www.theamericancollege.edu/knowledge-hub/wealth-managed-podcast
Wade Pfau — retirementresearcher.com/wade-pfau
Wade Pfau on LinkedIn — linkedin.com/in/wpfau
Wade Pfau on X — twitter.com/WadePfau
McLean Asset Management — mcleanam.com
Retire With Style Podcast — risaprofile.com/retire-with-style
Alliance for Lifetime Income — protectedincome.org
Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — rationalreminder.ca/podcast/89
Episode 137: David Blanchett: Researching Retirement — rationalreminder.ca/podcast/137
Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — rationalreminder.ca/podcast/254
The Ramsey Show — youtube.com/@TheRamseyShowEpisodes
The Ramsey Show: You Can’t Win With Money if You Don’t Know Where Your Money Is — youtube.com/watch?v=Xg4Z8EQY3Ao
‘Supernerds Unite Against Dave Ramsey’s 8% Safe Withdrawal Rate Guidance’ — thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance
Jason Fichtner — bipartisanpolicy.org/person/jason-j-fichtner
‘The Value of Delayed Social Security Claiming for Higher-Earning Women’ — dx.doi.org/10.2139/ssrn.3849653
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
