ChooseFI Logo

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

Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. American Express is a ChooseFI advertiser. Disclosures.
More To Explore
woman tracking personal finance in notebook
Money Plan
082R | The Paradox of Choice

Discussion of Brad and Jonathan’s purchasing habits, messages from the ChooseFI community, benefits and drawbacks of roboadviors, and a summary of capital gains harvesting. Links:

Read More »
You Might Be Interested in...
Something New at ChooseFI harnessed the power of AI to provide in-depth transcripts for all ChooseFI podcast episodes. Each section of the transcript is clickable so you can listen to the podcast at exactly the point you’re looking for

Other episodes
Share This Post