In this episode of Retire with Style, Alex Murguia and Wade Pfau explore the key elements of comprehensive retirement planning. They discuss the importance of understanding your financial goals, working with a financial advisor, and managing risks like health insurance and long-term care costs. Drawing on listener questions and case studies, they examine strategies for transitioning from business ownership to retirement income, optimizing Social Security, and addressing funding gaps. The conversation highlights how personalized planning and thoughtful asset allocation can lead to better financial outcomes in retirement. Listen now to learn more!
Takeaways
- The quality of your questions shapes the quality of your financial plan.
- Clear retirement goals are the foundation of effective planning.
- Financial advice must be tailored—there is no one-size-fits-all solution.
- Investment strategies should align with your personal goals and overall asset allocation.
- Health insurance planning is critical before reaching Medicare eligibility.
- Long-term care costs should be factored into your retirement plan.
- Tax planning can significantly increase your after-tax retirement income.
- Transitioning from business income to retirement income requires thoughtful preparation.
- Financial independence involves complex, interconnected decisions.
- Personalized strategies are essential for a successful retirement.
- Understanding your risk capacity and comfort level is vital to planning.
- Social Security claiming strategies can meaningfully affect retirement income.
- Asset location matters just as much as asset allocation.
- A written financial plan helps turn goals into actionable decisions.
- Part-time work can be a useful tool to bridge income gaps in early retirement.
- Fixed index annuities may offer dependable income in retirement.
- A good financial advisor can materially improve your retirement outcomes.
- It's important to assess your confidence and ability to manage your retirement plan.
- Effective planning requires a clear understanding of your assets and liabilities.
Chapters
00:00 Introduction to Financial Planning and the Webinar
01:57 Understanding Financial Plans and the Role of Advisors
05:53 Analyzing a Financial Independence Case Study
12:06 Exploring Retirement Risks and Goals
17:54 Investment Strategies and Tax Planning for Retirement
19:49 Transitioning from Business Sale to Retirement Income
25:08 Exploring Financial Strategies for Retirement
35:22 Bridging the Retirement Gap
42:32 The Value of Financial Advisors
Links
Upcoming Retirement Researcher Webinar: What’s Involved When Working With an Advisor! Join Jason Rizkallah and Brian Bass from McLean Asset Management on Wednesday, June 25th at 1PM Eastern for a FREE webinar exploring how to evaluate and work with a financial advisor.
Register now at retirewithstyle.com/podcast.
Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!
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
6 days ago
Hello Wade & Alex, this reply is from Mark J. on Episode 183. Just a FYI - the YouTube show where I submitted my question ($250k & Treasury Bills) has ~300 character limit so that’s why I couldn’t provide more detailed information. See more detailed information below: - Single, Age 60 - $250k in CD is for a future home down payment - 7-year CD ladder (age 61-67) is a bridge until Social Security at FRA age 67 - Net monthly SS benefit at age 67 is $1,000 - Net monthly Pensions is $8,700 (~1% COLA yearly) - Net monthly CD ladder is $3,000 beginning Jan 2026, inflation adjusted at 3.5% annually through 2032 - $1.3M in 401k’s (~$400k Roth; ~$900k Traditional Pre-Tax); Asset allocation is 90% stocks, 10% bonds - Emergency Fund $65k - $55k in US I-Bonds (no interest penalty after year 2026, using for 3.5% COLA on pension income) - Annual after-tax monthly income required $10,000 beginning Jan 2026, currently spending $6k monthly - Federal Effective Tax Rate 22.81% - State Tax Rate 4.40% - Won’t access 401k funds until age 68 - Plan on doing Roth Conversions age 60-67 up to 24% tax bracket each year, ~$75k to $100k yearly Question: Based on information, are T-Bills a wise investment for $250k in CD since there is no state income tax? - Provide any other thoughts based on data provided. Thank you, Mark J. Episode 183 response.