Show notes
You want to be as financially unbreakable as possible, even after your career ends, right? No matter what age you “retire”, or stop working, you still need to have an income to thrive. So, how do you plan to have an income after you stop working? In this episode of Off the Wall, hosts David Armstrong and Jessica Gibbs welcome Christine Benz, Director of Personal Finance and Retirement Planning at Morningstar, to talk about how to plan to have an income when you aren’t working anymore, regardless of your age. Listen in to learn the recommended withdrawal rate for spending, the role of asset allocation and inflation in retirement planning, and how to navigate a down market near the end of your career. Plus, you’ll learn tips and tactics for making your savings last longer, refilling your cash reserve after spending it, and improving the sustainability of your post-career wealth plan. “Most people, if they have a more vanilla asset class exposure in their portfolios, will not find easy pickings for rebalancing, which is why I think we come back to this idea of having 12 months’, 18 months’, 2 years’ worth of portfolio withdrawals in cash to protect you in an environment like this one.” – Christine Benz Episode Timeline/Key Highlights: [00:55] Introducing Christine Benz & The topic of today’s episode [02:59] The 4% withdrawal rate explained & Is it still the right rule of thumb for retirement? [08:21] Variables, like bequest motives, that influence your personal withdrawal strategy. [11:38] When is the updated Morningstar report on withdrawal rates coming out? [12:36] Sequence of return risk & How should investors navigate a down market around the end of their full-time job? [21:14] How to refill and rebalance your cash bucket, bond bucket, growth bucket, etc. [29:03] Practical ways to make your savings last longer without compromising your quality of life. [33:55] Do I need a financial planner? [35:36] How to approach rising inflation in retirement. [42:03] Unique challenges and decisions that come with a $5 million+ portfolio. Relevant Resources & Episodes Mentioned: Listen to The Long View podcast: https://bit.ly/3SaKsJ6 Read “The State of Retirement Income: Safe Withdrawal Rates”: https://bit.ly/3PMxwrl Your Money or Your Brain by Jason Zweig: https://amzn.to/2M96AFx The Little Book of Safe Money by Jason Zweig: https://amzn.to/3bea9Ib About Christine Benz: Christine Benz is Morningstar's director of personal finance and retirement planning and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. She’s also the host of Morningstar’s podcast, The Long View, where she talks to influential leaders in investing, advice, and personal finance about a wide range of topics like asset allocation and balancing risk and return. In 2020, Christine was named to the Investment Advisor 25 (IA25), ThinkAdvisor’s List of the 25 Most Influential Financial Leaders, and Barron’s Inaugural List of 100 Most Influential Women in U.S. Finance. Connect with Christine Follow her on Twitter: https://bit.ly/3PW0IvQ Connect with her on LinkedIn: https://bit.ly/3ORRBeA Buy Christine’s books: https://amzn.to/3QcH8v5 Read articles written by Christine: https://bit.ly/3cZ4tSK Listen to The Long View podcast: https://bit.ly/3bmwdjZ Connect with Monument Wealth Management Visit our website: https://bit.ly/monumentwealthwebsite Follow us on Instagram: https://bit.ly/MonumentWealthIG Follow us on Twitter: https://bit.ly/MonumentWealthTW Connect with us on LinkedIn: https://bit.ly/MonumentWealthLI Connect with us on Facebook: https://bit.ly/MonumentWealthFB Subscribe to our blog: https://bit.ly/MonumentWealthBlog About “Off the Wall” Off the Wall is a podcast aimed at helping you answer the questions: What is the point of my wealth, and what actions can I take to accomplish that purpose? Your answers to those questions will be different from everyone else’s. As Wealth Managers, we’re skilled at helping our clients think through these challenging, but important, questions. Learn more about our hosts, Dave and Jessica on our website at https://monumentwealthmanagement.com. Please see important podcast disclosure information at https://monumentwealthmanagement.com/disclosures.