The Mind Money Spectrum Podcast

#12. Sequence of Returns Risk: Why the first few years of withdrawals are the most critical.

March 03, 2020 Aaron Agte and Trishul Patel Season 1 Episode 12
The Mind Money Spectrum Podcast
#12. Sequence of Returns Risk: Why the first few years of withdrawals are the most critical.
Chapters
The Mind Money Spectrum Podcast
#12. Sequence of Returns Risk: Why the first few years of withdrawals are the most critical.
Mar 03, 2020 Season 1 Episode 12
Aaron Agte and Trishul Patel

In this episode, Aaron and Trishul discuss Safe Withdrawal Rate research, focusing on "Sequence of Returns Risk"; how the returns in the first few years of withdrawals after retirement disproportionately affect the rest of your life. Given this importance, how do you balance short and long-term goals when taking current withdrawals that need to last your lifetime? By understanding spending, investment, and longevity risk, you can choose which planning risks you want to take on, and how to make adjustments along the way.

Episode References

Five Surprising Facts About Widowhood
The Impact of the Sequence of Investment Returns
You're Likely to Live Longer if You Retire After 65
Safe Withdrawal Rates With Decreasing Retirement Spending
Sequence of Return Risk in Retirement
Managing the Portfolio Size Effect

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Aaron and Trishul discuss Safe Withdrawal Rate research, focusing on "Sequence of Returns Risk"; how the returns in the first few years of withdrawals after retirement disproportionately affect the rest of your life. Given this importance, how do you balance short and long-term goals when taking current withdrawals that need to last your lifetime? By understanding spending, investment, and longevity risk, you can choose which planning risks you want to take on, and how to make adjustments along the way.

Episode References

Five Surprising Facts About Widowhood
The Impact of the Sequence of Investment Returns
You're Likely to Live Longer if You Retire After 65
Safe Withdrawal Rates With Decreasing Retirement Spending
Sequence of Return Risk in Retirement
Managing the Portfolio Size Effect

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.