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043 | Drawdown Strategy | The Retirement Manifesto

In this podcast we have a far-ranging conversation with Fritz from the Retirement Manifesto about retirement drawdown strategies, his ‘buckets’ system, and his upcoming retirement.

Podcast Episode Summary

  • Retirement drawdown strategies with Fritz from Retirement Manifesto
  • How Fritz focuses on what life is about after retirement such as how you’re going to spend your time
  • Fritz is 9 months away from retirement himself
  • A background on his story in corporate America and his path to FI and early retirement
  • The difference in perspectives between retirement dates and savings rates between the FI community and the population at large
  • What would Fritz’s path have looked like if he found the FI community decades earlier
  • Fritz stayed with the same company for 32 years and has a traditional pension
  • Where did his interest in retirement spreadsheets and the blog come from?
  • How writing a blog helps develop and formalize your own thoughts and plans
  • What to consider when building your own retirement drawdown strategy
  • The Three Bucket Strategy for retirement drawdowns and how Fritz separates his own holdings by these buckets
  • What a simplification strategy looks like and how to avoid taxation with this simplification
  • How you can create a net neutral taxable position by specifically identifying losses and gains to sell when trying to simplify
  • How Fritz plans to use Roth conversions while he is in a zero-income position for a 2 year period and pay $0 in tax on the conversions
  • Explanation of the Mega Backdoor Roth and how Fritz is utilizing it
  • The equity to bond split that Fritz uses plus how to consider asset allocation and risk
  • Why does Fritz use a 60/40 Stock to Bon split when he has a pension and social security coming?
  • Why Fritz believes you shouldn’t take more risk than you have to
  • Fritz’s thoughts on delaying a pension and social security to get a guaranteed return
  • A hypothetical early retiree example and how Fritz would think through this example and advise them
  • The uncertainty of health care in early retirement
  • How they can track their annual spending by putting money into “Bucket 1”
  • What annual tasks do they do with a ‘year in review’?
  • The variable approach to withdrawal rates and flexibility
  • The value of protecting your Roth accounts to let them grow as long as possible
  • Life insurance policy discussion
  • The flexibility to take fun seasonal jobs if you wanted an adventure
  • Health Insurance and long-term care insurance discussion
  • Hot Seat Questions

The Golden Albatross

If your job offers a pension, then this book is a must-read. Easily learn how to calculate your pension’s objective value and weigh it against the subjective benefits of leaving for more fulfilling work.

Links from the show:

 

We were able to join the Blog Chain and this is our joint venture contribution with Retirement Manifesto

Anchor: Physician On Fire: Our Drawdown Plan in Early Retirement
Link 1: The Retirement Manifesto: Our Retirement Investment Drawdown Strategy
Link 2: OthalaFehu: Retirement Master Plan
Link 3: Plan.Invest.Escape: Drawdown vs. Wealth Preservation in Early Retirement
Link 4: Freedom Is Groovy: The Groovy Drawdown Strategy
Link 5: The Green Swan:  The Nastiest, Hardest Problem In Finance:  Decumulation
Link 6: My Curiosity Lab:  Show Me The Money: My Retirement Drawdown Plan 
Link 7: Cracking Retirement: Our Drawdown Strategy
Link 8: The Financial Journeyman: Early Retirement Portfolio & Plan
Link 9: Retire By 40:  Our Unusual Early Retirement Withdrawal Strategy
Link 10: Early Retirement Now:  The ERN Family Early Retirement Captial Preservation Plan
Link 11: 39 Months: Mr. 39 Months Drawdown Plan
Link 12:  7 Circles:  Drawdown Strategy – Joining The Chain Gang
Link 13:  Retirement Starts Today:  What’s Your Retirement Withdrawal Strategy?
Link 14:  Ms. Liz Money Matters:  How I’ll Fund My Retirement
Link 15:  Dads Dollars Debts:  DDD Drawdown Part 1: Living With A Pension
Link 16:  Penny & Rich:  Rich’s Retirement Plan
Link 17:  Atypical Life:  Our Retirement Drawdown Strategy
Link 18:  New Retirement: 5 Steps For Defining Your Retirement Drawdown Strategy
Link 19:  Maximize Your Money: Practical Retirement Withdrawal Strategies Are Important
Link 20:  ChooseFI:  The Retirement Manifesto – Drawdown Strategy Podcast

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