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:
- Retirement Manifesto
- Retirement Drawdown Strategy chain with 20+ other bloggers
- Personal Capital (affiliate)
- Early Retirement Now
- Mega Backdoor Roth article at the Mad Fientist
- Freedom is Groovy
- The Stock Series at JL Collins NH
- Playing With FIRE documentary
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
