Retirement Talk Podcast Episode

143. What’s a Safe Withdrawal Rate Today?

February 15, 2023
Retirement withdrawal rate

A declining market will make any retiree uncomfortable, and it could put your future in jeopardy if you haven’t thought through your withdrawal strategy. Many retirees struggle to shift their mindset from accumulation to distribution so let’s talk about how to determine how much you should be taking out of your accounts each year in retirement. 

In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will tell you what the data says and explain the considerations you need to make when structuring a retirement income plan. Maybe the biggest factor you’ll face is sequence risk, which is the risk of encountering different market conditions early in retirement which puts a portfolio in jeopardy of not lasting a lifetime. Once you get into retirement, that sequence of return becomes very important because all that you built could go away just as fast depending on the timing of these withdrawals.

Traditional financial strategies say a 4% withdrawal each year is safe, but how accurate is that? Last year’s suggest rate had reduced to 3.3% but that has crept back up to 3.8% this year. These numbers might apply to you, but you won’t know until you build a proper plan. It all starts with a framework and our LifeArcPlan works with clients to input their data to determine a safe withdrawal rate based on a number of factors. We’ll take you through it all on this show to help you protect everything you’ve worked so hard to build.

Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 

Rate, Review and Subscribe to the Podcast:

https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188

How to Connect:

redefiningwealth.info

lswealthmanagement.com

Schedule a Review:  https://redefiningwealth.info/schedule/

Timestamps (show notes):

3:19 – Why this topic is so important right now

6:45 – The silver lining for people about to retire

13:36 – How inflation is gobbling up returns

21:03 – Changing your mindset in retirement away from accumulation

25:33 – What you need to consider when building your plan

Listen & Subscribe

Click on logos below.

Latest Retirement Talk Podcast Episodes

187. Time Segmentation, a Smart Way to Invest Retirement Money

187. Time Segmentation, a Smart Way to Invest Retirement Money

  Laura Stover, RFC® discusses the concept of time segmentation and its application in allocating retirement savings for a stable income during retirement. Time segmentation involves matching investments with the point in time when they will be needed to meet...

184. What to Do About These High Interest Rates

184. What to Do About These High Interest Rates

Laura Stover, RFC®, takes on the topic of interest rates today, and how they relate to your financial future. It is important to consider the historical context of interest rates. Over the past few decades, interest rates have been kept artificially low by central...

182. ‘Not QE’ Puts Fed Between A Rock And A Hard Place

182. ‘Not QE’ Puts Fed Between A Rock And A Hard Place

  Laura Stover, RFC® discusses the Federal Reserve's Bank Term Funding Program (BTFP) today, a topic that is often overlooked, but has significant implications for our economy.This program, which was introduced in response to the failures of banks earlier this...