Retire With Style

Episode 190- Buffer Assets, Bad Timing, and Better Plans

In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau explore how to manage sequence of returns risk in retirement. They break down four key strategies: spending conservatively, staying flexible with spending, reducing investment volatility, and using buffer assets. The discussion also touches on how sequence risk can arise more than once—especially for early retirees—and how having a pension can affect your overall risk tolerance. Throughout the episode, they emphasize the value of starting retirement on solid footing and building a margin of safety into your plan.
 
Takeaways
Sequence of returns risk is crucial for retirees.
Four strategies to manage sequence of returns risk exist.
Spending conservatively can mitigate risk.
Flexible spending strategies can adapt to market conditions.
Reducing investment volatility is essential for stability.
Buffer assets provide a safety net during downturns.
Early retirement years are particularly vulnerable to risk.
A good start in retirement can set the tone for success.
Pension income can change portfolio risk tolerance.
Understanding personal risk preferences is key to financial planning.
 
Chapters
00:00Introduction to Sequence of Returns Risk
07:33Understanding the Four Strategies to Manage Risk
17:14Exploring Multiple Sequence of Returns Risks
19:30Portfolio Risk and Pension Considerations
 
Links
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

Episode 189: Gold Is Shiny- But Is It Smart?

In this episode of Retire with Style, Wade Pfau and Alex Murguia tackle listener questions on a range of financial topics, including gold’s volatility, alternative investments, and how to measure retirement success. They discuss the realities of investment returns, the impact of recent U.S. bond downgrades, and the importance of understanding risk, using historical data, and maintaining a solid investment strategy in retirement.
 
Takeaways
Gold has lower average returns and higher volatility than stocks.
Alternative investments require careful evaluation due to lack of historical data.
Quantifying retirement success rates can provide clearer financial goals.
The magnitude of failure in financial planning is crucial to understand.
Investors should assess the compensated risk of their investments.
Monte Carlo simulations can help in understanding potential outcomes.
The funded ratio approach simplifies retirement planning.
US bond downgrades may not significantly impact long-term market trajectories.
Understanding the underlying assumptions of financial plans is essential.
Risk assessment is a key component of effective financial planning.
Chapters
00:00 Introduction and Overview of Q&A Session02:33 Debating Gold's Volatility and Investment Value08:56 Exploring Alternative Investments and Their Evaluation19:03 The Importance of Theoretical Justification in Investments20:17 Understanding Retirement Planning Tools23:04 Probability of Success vs. Rate of Return27:21 Magnitude of Failure in Financial Planning30:31 The Funded Ratio Approach34:06 Evaluating Financial Advisors36:15 Impact of US Bond Downgrades
 
Links
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 McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

Episode 188: Are TIPS the Retirement Safety Net You’ve Been Missing?

In this episode of Retire with Style, Alex Murguia and Wade Pfau explore Treasury Inflation-Protected Securities (TIPS) and their role in retirement planning. They cover the history of TIPS, their tax implications, and how they help protect against inflation. The conversation also addresses the drawbacks of TIPS, current market conditions, and the importance of clear communication- especially for couples where one partner is less engaged in financial matters.
 
Takeaways
TIPS were introduced in 1997 to protect against inflation.
TIPS provide a real rate of return that adjusts with inflation.
Tax implications of TIPS make them less efficient than other investments.
It's important to consider the inflation protection TIPS offer in retirement planning.
Market timing is not a sound strategy for investing in TIPS.
Communicating financial plans should focus on meaning rather than just numbers.
Delaying Social Security can provide inflation-adjusted income.
Laddering SPIAs can be an effective strategy for income planning.
Understanding your spouse's values can enhance financial discussions.
Having a contingency plan for financial management is crucial.
 
Chapters
00:00 Introduction to TIPS and Their Importance02:57 Understanding TIPS: Historical Context and Current Trends06:00 Tax Implications and Asset Location for TIPS09:01 Inflation Protection Strategies in Retirement12:01 Evaluating the Downsides of TIPS14:58 Conclusion and Final Thoughts on TIPS18:21 Understanding TIPS and Their Role in Portfolios27:15 Communicating Financial Plans to Less Interested Spouses
 
Links
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

Episode 187: Couples, Roths, and SPIAs- Oh My!

In this episode of Retire with Style, Alex Murguia and Wade Pfau explore key retirement planning strategies, including how couples can optimize Social Security benefits, what to do with surplus funds from bond ladders, and the potential benefits of purchasing single premium immediate annuities (SPIAs) from Roth IRAs. They highlight the importance of maintaining flexibility and tailoring strategies to each retiree’s unique circumstances.
 
Takeaways
Delaying social security can benefit the higher earner in a couple.
The low earner has flexibility in claiming social security earlier.
Using software can help determine optimal social security claiming strategies.
Survivorship benefits are crucial in social security planning.
Bond ladders are used for retirement income, not just reinvestment.
Surplus funds from bond ladders can be invested in growth portfolios.
Roth IRAs can be beneficial for purchasing SPIAs.
SPIAs can provide tax-free income streams in retirement.
Tax diversification is important in retirement planning.
Real-life financial planning requires flexibility beyond strict rules.
Chapters
00:00 Introduction and Overview01:16 Social Security Strategies for Couples06:41 Managing Bond Ladder Surplus Funds16:29 Exploring SPIAs in Retirement
 
Links
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 McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

Episode 186: How to Build a Retirement Plan That Lasts (and Saves on Taxes)

In this episode of Retire with Style, Alex Murguia and Wade Pfau answer listener questions on retirement planning for high earners. They explore tax strategies like Roth conversions and qualified charitable distributions, and discuss how tools like life insurance and annuities can help hedge longevity risk and support a stable retirement income.
 
Takeaways
The importance of community engagement in retirement planning.
High earners face unique tax challenges and strategies.
Qualified charitable distributions can help manage tax implications.
Roth conversions can be beneficial for reducing future RMDs.
Understanding the widow's penalty in retirement planning is crucial.
Annuities can provide income stability in later years.
Life insurance can hedge against the risk of not living long enough.
The interplay between income sources and tax brackets is complex.
Gifting strategies can help manage estate taxes effectively.
Combining life insurance and annuities can optimize retirement income.
 
Chapters
00:00 Introduction and Community Engagement03:12 Exploring Tax Strategies for High Earners06:09 Navigating Retirement Risks for Couples11:49 Hedging Against Longevity Risks in Retirement28:59 Conclusion and Future Q&A Sessions
 
Links
If you want to better understand how to protect your retirement from bad market timing, don’t miss Retirement Researcher’s free webinar: “Four Ways to Manage Sequence of Returns Risk,” hosted by Wade Pfau happening July 15th, 2025 from 1:00 - 2:00 PM ET. You’ll learn practical strategies to reduce volatility’s impact on your retirement income. 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

Episode 185: Retire with Style Live Q&A

In this live Q&A session, Alex Murguia and Wade Pfau answer questions on key aspects of retirement income planning, including withdrawal strategies, the 4% rule, tax considerations, and the role of financial advisors. They discuss how age and financial circumstances can influence withdrawal rates and highlight the importance of using guardrails to manage risk. The conversation also touches on Medicare, ACA subsidies, gifting strategies, and investment approaches to help protect against inflation. Altogether, it offers practical insights for retirees planning their financial future.
 
Takeaways
The 4% rule is a guideline for a 30-year withdrawal strategy.
Withdrawal rates can vary based on age and time horizon.
Guardrails can help manage sequence of returns risk in retirement.
Tax strategies are crucial for overfunded retirees to minimize liabilities.
Medicare and ACA subsidies can impact retirement income planning.
Gifting strategies can help manage estate taxes and provide for heirs.
Investment strategies should consider inflation protection, especially for those without Social Security.
Financial advisors can provide valuable guidance in retirement planning.
Risk management is essential to ensure sustainable income in retirement.
Planning for retirement involves both financial and non-financial considerations.
Chapters
00:00 Introduction to Retirement Income Strategies06:07 Understanding the 4% Rule and Its Variations11:55 Exploring Withdrawal Rates for Different Ages21:01 Strategies for Overfunded Retirement Scenarios30:14 Balancing Total Return and Income Protection Strategies32:40 Spending Strategies for Retirement Accounts35:50 Charitable Giving and Roth Accounts39:31 Mortgage vs. Roth IRA Contributions43:57 Withdrawal Strategies in Retirement49:41 Key Steps Before Retirement53:08 Roth Conversions and IRMA56:28 Inflation Protection for Educators01:01:15 Understanding Risk-Wrapper Strategies
 
Links
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

Episode 184: Can Tech Replace Your Financial Advisor?

In this episode of Retire with Style, Wade Pfau and Alex Murguia talk with John Manganaro, senior reporter at ThinkAdvisor, about the shifting landscape of retirement income planning. They explore how technology is reshaping financial planning, the growing need for holistic advice, and the challenges both advisors and consumers face in finding effective tools. John offers insights into the future of financial software, the value of human advisors, and the behavioral side of planning-highlighting the importance of addressing both financial and lifestyle goals in retirement.
 
Takeaways
Technology is expanding what financial advisors can do.
Holistic advice is becoming essential for effective retirement planning.
An aging population is driving greater demand for financial planning.
Advisors are increasingly using advanced tools for tax-efficient retirement income strategies.
The advisor’s role remains critical in implementing and personalizing financial plans.
Behavioral factors are just as important as the numbers in financial planning.
More new advisors are focusing on serving middle-class clients.
AI may help democratize access to quality financial advice.
New software solutions are reshaping how the industry delivers financial planning.
Many next-generation advisors are driven by a desire to help others, not just manage wealth.
Chapters
00:00 Introduction to Retirement Income Planning03:00 The Role of Technology in Financial Planning06:03 Understanding Holistic Financial Advice09:05 The Evolution of Financial Planning Tools11:54 Challenges in Accessing Financial Advice14:57 The Future of Financial Software Solutions25:56 Exploring Social Security Strategies28:07 Preparing for Retirement: Lifestyle Considerations30:00 Behavioral Challenges in Financial Planning33:00 The Evolution of Financial Software39:07 The Role of AI in Financial Advice42:57 The New Wave 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 ET 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 McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

Episode 183: Retire Smarter, Not Harder

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 Webinar01:57 Understanding Financial Plans and the Role of Advisors05:53 Analyzing a Financial Independence Case Study12:06 Exploring Retirement Risks and Goals17:54 Investment Strategies and Tax Planning for Retirement19:49 Transitioning from Business Sale to Retirement Income25:08 Exploring Financial Strategies for Retirement35:22 Bridging the Retirement Gap42:32 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
 

Episode 182: When Disaster Strikes… Should You Invest?

In this episode of Retire with Style, Wade Pfau and Alex Murguia explore alternative investments with a focus on natural resources, commodities, and catastrophe bonds. They break down the strategies and risks behind these asset classes and examine how they can fit into a diversified retirement portfolio. The conversation offers insights into the potential advantages and challenges of these investments for retirement planning.
 
Takeaways
Natural resources include timberland, farmland, and water rights.
Commodities can serve as an inflation hedge but are volatile.
Catastrophe bonds transfer natural disaster risk to investors.
Investing in companies that use commodities may be more beneficial.
The correlation of commodities to equities is generally low.
Catastrophe bonds can provide uncorrelated returns to the market.
Investors should consider the expected return for each asset class.
Due diligence is essential when exploring alternative investments.
Infrastructure investments can offer stable returns through usage fees.
The role of portfolio managers is to expose investors to asset classes with favorable risk-return profiles.
Chapters
00:00 Introduction to Alternative Investments02:22 Exploring Natural Resources and Commodities11:53 Understanding Catastrophe Bonds21:18 Evaluating Risks and Returns in Catastrophe Bonds
 
Links
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 McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”
 

Episode 181: Bricks, Mortar and Retirement

In this episode of Retire with Style, Wade Pfau and Alex Murguia explore real assets- focusing on real estate and infrastructure- and their role in retirement portfolios. They discuss the pros and cons of residential and commercial property ownership, the value of REITs, and the potential of infrastructure investments. The conversation highlights the importance of diversification and understanding the risk-return tradeoffs of these asset classes. Listen now to learn more!
 
Takeaways
Real assets—like real estate and infrastructure—can play a valuable role in retirement portfolios.
These assets can improve portfolio efficiency by enhancing return relative to risk.
REITs offer accessible exposure to real estate without requiring accredited investor status.
Owning residential property often requires active management and can feel more like a job than a passive investment.
Commercial real estate tends to provide more stable income through longer-term leases.
Infrastructure investments can offer steady cash flows and some protection against inflation.
Diversification remains key to effectively managing portfolio risk.
1031 exchanges allow investors to defer capital gains taxes when selling real estate.
Water rights represent a niche but growing area of investment opportunity.
Chapters
00:00 Introduction to Real Assets02:00 Understanding Real Estate in Portfolios08:04 The Role of Residential Real Estate16:01 Exploring Commercial Real Estate28:05 Infrastructure as an Investment33:44 Conclusion and Future Topics
 
LinksExplore 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