Retire With Style

Episode 177: Winning the Loser’s Game: A Look at Alternative Investments

In this episode of Retire with Style, Dr. Wade Pfau and Dr. Alex Murguia explore the evolving world of alternative investments and their potential role in retirement planning. They discuss the concept of "Winning the Loser’s Game"—emphasizing the value of steady, disciplined strategies over high-risk maneuvers—and examine how alternatives like cryptocurrencies, private equity, and hedge funds may fit into a well-structured retirement portfolio. The conversation covers what it means to be an accredited investor, common misconceptions about alternative assets, and the importance of liquidity and regulatory oversight. They also touch on how current market dynamics are making these investments more accessible to individuals. Plus, they answer a listener question about spousal benefits under Social Security, offering practical guidance for those planning around them. Listen now to learn more!
 
Takeaways
Alternative investments can enhance portfolio diversification.
The concept of 'Winning the Loser's Game' applies to investing strategies.
Community engagement can be fostered through shared interests like pickleball.
Understanding the role of alternative investments is crucial for informed decision-making.
Not all alternatives are suitable for every investor's portfolio.
The definition of alternatives is broad and includes various asset classes.
Investors should be cautious of the hype surrounding alternatives.
Higher returns are often touted as a benefit of alternative investments.
Inflation hedging is a key reason for considering alternatives.
Access to alternative investments is becoming more democratized. Cryptocurrencies, especially Bitcoin, are seen as alternatives to traditional assets.
The future of investing is evolving, with more access for household investors.
Accredited investor status is crucial for accessing certain investment opportunities.
Many misconceptions exist about the risk and accessibility of alternative investments.
Liquidity versus illiquidity is a key consideration in alternative investments.
Market dynamics are changing, making alternatives more relevant now.
Technological innovations are democratizing access to alternative investments.
Investors should assess their portfolios for potential returns in alternatives.
Regulatory oversight is important for ensuring the safety of investments.
Understanding Social Security benefits is essential for retirement planning.
 
Chapters
00:00 Introduction to Alternative Investments02:57 The Concept of Winning the Loser's Game06:09 Engaging the Community with Pickleball08:58 Understanding Alternative Investments12:05 Defining Alternatives in Investing15:03 The Appeal of Alternative Investments19:33 Exploring Cryptocurrencies and Their Unique Position22:01 The Evolution of Alternative Investments for Household Investors24:40 Understanding Accredited Investor Status and Its Implications31:07 Debunking Myths About Alternative Investments41:07 Why Now is the Time to Consider Alternatives45:17 Listener Question: Social Security Spousal Benefits
 
Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 176: Strategic Retirement Planning: Q&A on Income, Taxes, and Investments

In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau tackle a range of financial planning questions in a lively Q&A session. They explore Social Security strategies, the role of single premium immediate annuities (SPIAs) in retirement income, and investment approaches for managing required minimum distributions (RMDs). The discussion also covers the pros and cons of bond ladders versus Treasury bonds, along with how Roth conversions can affect adjusted gross income and Medicare premiums. Throughout the conversation, Alex and Wade highlight how thoughtful, strategic planning can help retirees maximize their income and minimize their tax burden. Listen now to learn more!
 
Takeaways
Delaying social security can lead to increased spending throughout retirement.
A social security delay bridge can mitigate sequence of returns risk.
Single premium immediate annuities provide longevity protection and mortality credits.
Investing RMDs for beneficiaries can allow for more aggressive strategies.
Roth conversions impact adjusted gross income and potential IRMA surcharges.
Tax-efficient planning can help manage future tax liabilities.
Bond ladders are useful for meeting specific spending needs in retirement.
Treasury bonds can be a simpler alternative to bond ladders.
Understanding the nuances of annuities is crucial for retirement planning.
Engaging with audience questions enhances the relevance of financial discussions.
Chapters
00:00 Introduction and Pickleball Paddle Reveal04:30 Diving into Financial Planning Questions05:44 Social Security Strategies and Their Impact11:10 Building a Social Security Delay Bridge16:11 Exploring Single Premium Immediate Annuities22:45 Investment Strategies for RMDs24:40 Bond Ladders vs. Treasury Bonds26:59 Understanding Roth Conversions and IRMA
 
Links
Our new Retire With Style podcast website is officially LIVE! Submit questions for future episodes, learn more about us and our affiliates, and more to come! Visit RetireWithStyle.com to check it out now! 
Visit our YouTube channel and watch this episode and see the new custom limited edition Retire With Style Pickleball Paddles! Follow the instructions in the comments of that video to enter for your chance to win of your very own: https://www.youtube.com/@retirewithstylepodcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

Episode 175: Can Money Buy Happiness in Retirement?

In this episode of Retire With Style, Dr. Wade Pfau and Dr. Alex Murguia are joined by behavioral finance expert Dr. Daniel Crosby to explore the intersection of wealth, values, and happiness in retirement.
Together, they unpack why aligning your spending with your personal values can lead to a more fulfilling life—and how money, when used thoughtfully, can buy happiness. The conversation dives into the psychology of financial decision-making, the role of willpower, and why experiences and time often bring more joy than material possessions.
They also examine how our values evolve over time, the importance of delayed gratification, and how understanding risk more deeply can lead to better financial planning. Ultimately, this episode reframes wealth not just as a number—but as a tool for building a meaningful and purpose-driven retirement. Listen now to learn more!
 
Takeaways:
Aligning spending with personal values is essential for a fulfilling and meaningful life.
Money reflects what we value most—and using it to buy time and experiences often brings greater happiness than material goods.
Strong relationships and shared experiences are more important to long-term happiness than income alone.
Retirement is a transition, not just an end goal. Planning should include emotional and psychological readiness—not just finances.
Many people are unprepared for the emotional complexity of retirement, including the challenge of redefining purpose.
While income matters up to a point, happiness largely depends on subjective factors—and some people may remain dissatisfied regardless of wealth.
Investing in relationships and purpose-driven goals is key to long-term well-being.
Values may stay the same over time, but how we express them can evolve.
Willpower is less about discipline and more about building habits and making poor choices harder to access.
Delayed gratification is a powerful tool for achieving long-term satisfaction.
Fear of failure can hold us back—and often becomes a self-fulfilling prophecy.
A great advisor doesn’t just manage money—they help clients align their finances with their life goals.
True wealth lies at the intersection of financial security and personal meaning.
Chapters
00:00 Introduction to The Soul of Wealth01:20 Contextualizing Wealth and Values06:22 The Psychology of Spending and Happiness10:01 Money, Happiness, and Subjective Well-Being14:15 Buying Time and Freedom20:14 Retirement: Beyond Leisure and Fun24:22 The Freedom to Choose: Beyond Escape25:04 Aligning Spending with Values26:06 Crafting a Meaningful Financial Plan27:38 Elevating the Client Experience29:27 The Dynamic Nature of Values30:54 Willpower: The Key to Financial Discipline33:12 Mastering Delayed Gratification39:12 Understanding Risk in Financial Planning45:56 Money and Meaning: A Life of Significance
 
Links
Visit your preferred book retailer to get your own copy of “The Soul of Wealth: 50 Reflections on Money and Meaning”  by Dr. Daniel Crosby or click here to purchase from Amazon: https://retirement-researcher.ontralink.com/tl/532
Want more of this kind of insight? The Retirement Researcher Academy is where conversations like these keep going. Visit RetirementResearcher.com/Academy-RWS  and use code RWS1 to get the 1st Month of your Monthly Academy subscription on us! 🔗 Join the Academy and get access to the education your future self will thank you for.
Click here to watch this episode on YouTube: https://youtu.be/bEUH0FDQFBo
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 174: The Psychology of Investing: Understanding Market Reactions

In this episode of Retire with Style, Wade Pfau and Alex Murguia sit down with Dr. Daniel Crosby, a leading voice in behavioral finance, to unpack the psychological side of investing in today’s volatile markets. Together, they examine how market swings and media noise shape investor behavior—and why having a thoughtful media diet and disciplined decision-making framework is more important than ever. This conversation lays the foundation for next week’s episode, where the discussion will shift toward deeper questions of wealth and meaning. Listen now to learn more!
Takeaways
Market volatility can trigger anxiety—even among professionals.
It’s normal to feel fear during downturns, but those emotions don’t have to drive your decisions.
Limiting exposure to financial news may help you stay focused and make better choices.
Recognizing the incentives behind financial media can help you consume it more critically.
More information isn’t always better—clarity often comes from less, not more.
Patience matters. Reminding yourself that “this too shall pass” can be grounding.
Uncertainty often causes more stress than bad news itself.
Taking time to reflect before acting can lead to better financial outcomes.
We tend to give others better advice than we give ourselves—pause and consider what you’d tell a friend.
Automation and structured plans are powerful tools to reduce emotional decision-making.
Chapters
00:00 Introduction to Behavioral Finance and Market Volatility02:56 Understanding Market Reactions and Investor Psychology06:01 The Impact of Media on Financial Decision Making08:47 Navigating Uncertainty in Financial Markets12:05 The Importance of Patience and Discipline in Investing15:03 Frameworks for Better Financial Decision Making17:55 Conclusion and Transition to The Soul of Wealth
Links
Click here to watch this episode on YouTube: https://youtu.be/6pMFE_-u0YM
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

Episode 173: Navigating Market Volatility: Strategies for Investors

In this episode of Retire with Style, Wade Pfau and Alex Murguia dive into the current market landscape and what it means for retirement planning. They highlight the importance of staying grounded during periods of volatility and how emotions can cloud financial judgment.
Alex introduces the RAIN model—a practical framework to recognize and manage emotional responses—to help investors approach market uncertainty with mindfulness. Together, Wade and Alex unpack how psychological biases influence decision-making and why having a flexible, well-structured plan is key to weathering financial storms.
The conversation also explores strategies for resetting your financial plan in response to market changes, including flexible spending approaches, safe withdrawal rates, and considerations around delaying Social Security. The takeaway? Long-term goals matter most—and with the right mindset and plan, you can navigate uncertainty with confidence.
 
Takeaways
Markets are currently down, prompting a need for better financial decisions.
Emotional responses to market volatility can lead to poor decision-making.
The RAIN model helps in recognizing and managing emotions during uncertainty.
It's important to allow feelings of anxiety without acting on them.
Investors should investigate their thoughts and biases during market downturns.
Non-identification with emotions can lead to better decision-making.
Market downturns can be beneficial for savers looking to buy at a discount.
Resetting financial strategies is crucial during times of uncertainty.
Long-term investment strategies should be prioritized over short-term reactions.
Understanding one's retirement income style can impact decision-making during volatility. Maintaining flexibility in retirement spending is crucial.
Market volatility can impact retirees differently based on their strategies.
A diversified portfolio can help withstand market fluctuations.
It's important to adapt your retirement strategy to your personal style.
Delaying social security can lead to better long-term financial outcomes.
Behavioral biases can hinder effective investing decisions.
A financial plan provides a framework for making objective decisions.
Backcasting helps in setting realistic financial goals.
Understanding your future self can guide current financial decisions.
Rules-based decision-making can mitigate emotional responses during market downturns.
 
Chapters
00:00 Market Volatility and Its Implications05:02 Understanding Emotional Responses to Market Changes19:06 The RAIN Model: A Framework for Decision Making22:54 Resetting Financial Strategies During Uncertainty23:48 Navigating Market Volatility in Retirement27:06 Preparing for Financial Decisions in Uncertain Times28:30 Understanding Safe Withdrawal Rates29:49 Addressing Behavioral Biases in Investing32:41 The Importance of Financial Planning39:16 Strategies for Delaying Social Security
 
Links
To continue today's conversation.. Join Retirement Researcher THIS Thursday 4/10/25 at 1PM ET for a timely webinar, hosted by Alex Murguia, Ph.D. called, "Making Smarter Financial Decisions in Volatile Markets". Register now at risaprofile.com/podcast 
 
If you haven't already, visit risaprofile.com/style to discover your Retirement Income Style by taking our RISA® questionnaire for free!
 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
 
 

Episode 172: Understanding Market Volatility

In this episode of 'Retire with Style', Wade Pfau and Alex Murguia discuss the complexities of market volatility, its implications for investors, and the current economic landscape. They discuss the nature of volatility, the significance of the VIX as a measure of market fear, and the emotional toll of daily market fluctuations. The conversation also touches on the impact of tariffs and inflation on the economy, emphasizing the importance of understanding these factors for long-term investment strategies. Alex and Wade discuss the current state of the market, focusing on the impact of the technology sector, government spending, and economic volatility. They explore historical market risks, investment strategies for navigating uncertainty, and the importance of controlling investment factors. The discussion emphasizes the need for a well-thought-out investment strategy that aligns with individual preferences and the realities of market fluctuations. Listen now to learn more!
 
Takeaways
Market volatility is a significant concern for long-term investors.
Understanding the VIX can help investors gauge market sentiment.
Tariffs can have complex effects on the economy and consumers.
Investors in the distribution phase are more vulnerable to market downturns.
The emotional impact of market volatility can affect decision-making.
It's essential to focus on long-term investment strategies rather than daily changes.
Economic growth and inflation are interconnected factors influencing market conditions.
Understanding market dynamics can help investors make informed decisions. The technology sector is currently a significant drag on the market.
Government spending cuts can lead to increased economic volatility.
Historical data shows that missing key market days can negatively impact returns.
Diversification can mitigate losses in a globally diversified portfolio.
Investment strategies should align with personal comfort levels and financial goals.
Chapters
00:00 Introduction to Market Volatility04:20 Understanding Market Volatility10:06 The VIX: Fear Index Explained11:57 Market Movements and Emotional Responses16:21 Current Market Conditions and Influences25:11 Inflation and Its Impact on the Economy27:28 Market Trends and Technology Sector Impact29:55 Government Spending and Economic Volatility32:34 Historical Market Risks and Uncertainties35:05 Investment Strategies for Market Volatility41:21 Decision-Making in Uncertain Markets46:07 Controlling Investment Factors
 
Links
Watch this episode on YouTube: https://youtu.be/6nCikqRDcTw 
Missed the webinar? Sign up now to get access to the replay of the Retirement Researcher webinar called, "Understanding Market Volatility and What It Means For You": https://retirementresearcher.com/rws-market-volatility-replay
Missed the webinar? Sign up now to get access to the replay of the Retirement Researcher webinar called, "Understanding Market Volatility and What It Means For You": https://retirementresearcher.com/rws-market-volatility-replay
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”
 

Episode 171: Unlocking the Secrets of Bond Laddering

In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau are joined by Nate Conrad from Lifex Funds to discuss the innovative approach to retirement income through bond ladders. The conversation explores the evolution of Lifex, the differences between traditional bond funds and bond ladders, and the design of Lifex ETFs aimed at providing consistent income for retirees. They delve into the behavioral aspects of investing in bonds, the practical applications of bond ladders in retirement planning, and the complexities involved in constructing a bond ladder. The episode emphasizes the importance of aligning investment strategies with retirement income needs and the benefits of using Lifex's products for a more stable financial future. They discuss the importance of simplifying investment processes to enhance accessibility for investors. The conversation also touches on income distribution strategies, emphasizing the benefits of front-loading income and the tax implications of different spending methods. They end the episode with listener questions that provide practical insights into managing surplus wealth and the appropriate investment strategies for different funding ratios. Listen now to learn more!
 
Takeaways
Lifex has evolved to focus on retirement income through bond ladders.
Bond ladders provide predictable income compared to traditional bond funds.
The design of Lifex ETFs allows for monthly distributions to match spending needs.
Lifex ETFs are structured to adapt to the spending patterns of retirees.
The importance of managing long-term bond investments for retirement planning.
Constructing a bond ladder manually can be complex and time-consuming.
Using Lifex products simplifies the bond laddering process for investors.
Retirement income strategies should prioritize stability and predictability. Simplifying investment strategies can lead to better adoption.
Bond laddering can provide more predictable income than bond funds.
Using a bond ladder can allow for higher spending rates in retirement.
Surplus wealth can be invested more aggressively once basic needs are met.
Chapters
00:00 Introduction to Retirement Income Bond Ladders02:51 The Evolution of Lifex and Its Offerings06:09 Understanding Bond Ladders vs. Bond Funds09:11 Designing Lifex ETFs for Retirement Income12:01 Managing Long-Term Bond Investments15:06 Behavioral Aspects of Bond Investing18:06 Practical Applications of Bond Ladders in Retirement20:56 The Complexity of Building a Bond Ladder24:58 The Importance of Simplifying Investment Strategies29:51 Understanding Bond Laddering vs. Bond Funds36:30 Exploring Income Distribution Strategies41:13 Listener Questions and Practical Applications
 
Links
Wade will be at the Dallas MoneyShow, April 4-6. He will speak Sunday morning April 6 on Retirement Styleshttps://www.mmsdallas.com/speakers/1adf58d0d50547b0981fad3b07614de4/wade-pfau/?scode=064748
Learn more about the LifeX funds: https://www.lifexfunds.com/
Click here to watch this episode on YouTube: https://youtu.be/B_0xtHX1Hzc?si=x5ArQFSNEoA0RGfV
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 170: The Importance of Your Planning Assumptions Part 2

Welcome Back! In this episode, Alex, Wade and Brian dive into the complexities of financial planning, focusing on return assumptions, the importance of a living financial plan, and the methodologies behind capital market assumptions. They discuss the balance between spending and saving in retirement, the relevance of the 4% rule, and practical recommendations for effective financial planning. The conversation emphasizes the need for stress testing and understanding the underlying assumptions in financial models to ensure realistic and effective planning. Listen now to learn more!
 
Takeaways
Return assumptions can be based on historical or expected returns.
The financial plan should be treated as a living document that evolves over time.
Methodologies for capital market assumptions can vary significantly between firms.
The 4% rule is less relevant in modern financial planning than it used to be.
Stress testing financial plans helps to understand potential outcomes and risks.
Communication with clients about their financial goals is essential.
Understanding the math behind financial planning is as important as the goals themselves.
Advisors should guide clients in making informed decisions about spending and saving.
Chapters
00:00 Historical vs. Expected Returns in Planning04:14 Building Capital Market Assumptions07:15 Balancing Lifestyle and Financial Planning11:01 Understanding Spending Behavior in Retirement13:36 The Relevance of the 4% Rule17:26 Practical Recommendations for Financial Planning
 
Links
Click here to watch this episode on YouTube: https://youtu.be/R1dNHo3BDNA?si=RiNVF21TG9Zh4Npf
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

Episode 169: The Importance of Your Financial Planning Assumptions: Part 1

In this episode, Alex and Wade are joined by Brian Bass from McLean Asset Management to discuss the complexities of financial planning assumptions, particularly focusing on Monte Carlo simulations and their implications for success rates in retirement planning. They discuss how different advisors may present varying success rates based on their underlying assumptions, emphasizing the importance of understanding them for consumers. Key topics include the significance of capital market assumptions, the magnitude of failure in financial plans, and the necessity for transparency and communication between advisors and clients. The conversation aims to equip listeners with the knowledge to critically evaluate financial plans and ask the right questions when consulting with advisors. Listen now to learn more!
Takeaways
Consumers often lack awareness of the assumptions behind financial plans.
Monte Carlo simulations are a common tool in financial planning.
Success rates can be misleading without understanding underlying assumptions.
Small changes in return assumptions can significantly impact success rates.
Transparency in financial planning is crucial for informed decision-making.
Clients should ask advisors about the inputs used in their financial plans.
Different advisors may use varying assumptions leading to different outcomes.
Understanding capital market assumptions is key to evaluating financial plans.
Effective communication of financial concepts is essential for client understanding.
Chapters
00:00 Introduction to Financial Planning Assumptions02:18 Understanding Monte Carlo Simulations04:16 The Importance of Assumptions in Financial Planning06:21 Defining Success Rates in Financial Plans09:32 Magnitude of Failure vs. Success Rates10:39 Capital Market Assumptions Explained14:32 The Role of Returns and Volatility15:19 Communicating Complex Concepts to Clients18:29 The Impact of Long-Term Care on Financial Plans21:33 Key Questions for Consumers to Ask Advisors23:24 The Sensitivity of Return Assumptions
 
Links
Have a question about your financial plan? Schedule a 15-minute call with Jason Rizkallah from McLean Asset Management: https://calendly.com/jason-rizkallah/mclean-asset-management-introduction-call
Did you miss the Challenge? Join the Waitlist to be the first one notified when registration is open for the next session of the Retirement Income Challenge: risaprofile.com/podcast 
Click here to watch this episode on YouTube: https://youtu.be/7Cn0DUxIpvs
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
 

Episode 168: Funded Ratio vs. Monte Carlo: Which is Better?

In this episode of 'Retire with Style', hosts Alex Murguia and Wade Pfau discuss the importance of understanding the funded ratio in retirement planning. They explore how the funded ratio compares to Monte Carlo simulations, the significance of present value in assessing retirement income, and the implications of conservative return assumptions. The conversation emphasizes the need for a solid financial plan and the upcoming retirement income challenge designed to help participants create their financial strategies. They also discuss the differences between funded ratios and Monte Carlo simulations in retirement planning. They emphasize the simplicity and intuitiveness of funded ratios, which allow individuals to easily understand their financial status. The discussion also covers the importance of variable spending strategies, the complexities of tax calculations, and how to analyze essential versus discretionary expenses. They address listener questions about Roth conversions and the challenges of retirement planning, advocating for a shift towards funded ratios as a more reliable tool for assessing retirement readiness. Listen now to learn more!
 
Takeaways
The funded ratio helps assess if you have enough assets to cover retirement liabilities.
Monte Carlo simulations and funded ratios approach retirement planning from different angles.
Present value calculations are crucial for understanding future income streams.
The funded ratio is a powerful tool used by pension funds and can be applied to individual retirement planning.
The funded ratio can provide a clearer picture of retirement funding status than Monte Carlo simulations.
Future earnings can be included in the funded ratio assessment.
The choice of discount rate can significantly impact the funded ratio outcome.
It's important to know the difference between current value and present value in retirement planning. The funded ratio is a more intuitive approach than Monte Carlo simulations.
Variable spending strategies can be effectively modeled with Monte Carlo.
Understanding essential vs. discretionary expenses is crucial for retirement planning.
Roth conversions can be beneficial even when working, but require careful consideration.
The financial planning profession has largely favored Monte Carlo methods.
 
Chapters
00:00 Introduction and Upcoming Events02:58 Understanding the Funded Ratio10:30 Present Value and Retirement Planning12:23 Conservative Return Assumptions17:48 Monte Carlo vs. Funded Ratio20:34 Understanding Funded Ratios vs. Monte Carlo Simulations25:22 The Role of Monte Carlo in Variable Spending Strategies27:49 Gathering Information for Funded Ratio Calculations30:11 Analyzing Funded Ratios for Essential vs. Discretionary Expenses33:53 The Shift from Monte Carlo to Funded Ratios39:54 Listener Questions: Roth Conversions and Retirement Planning
 
Links
Register to attend Retirement Researcher’s FREE 4-Day Retirement Income Challenge on March 10-13th from 12:00 – 2:00 PM ET each day: https://risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips