Retirement Withdrawal Strategies Ranked (Best to Worst)

Interested in a plan to Navigate the Retirement Risk Zone?

Eric Amzalag, CFP®, RICP®

_ _
Disclaimer: Please consult with your own tax, legal and financial advisors for personalized advice. Peak Financial Planning Inc, or its members cannot be held liable for any use or misuse of this content.

#retirement #howmuchtoretire #retirementplanning #retirementplan

[ThePeakFP]

It has been brought to my attention that there is an error in the summary sheet totaling the 4% rules first ten years of cumulative spending.
The ACTUAL total is $458, 555, NOT the $148k that is in the spreadsheet.
The principles in the video remain the same - but I do apologize for the oversight in not catching the error.

[LeepinLeopard]

All time highs… I’ve been investing for almost 2 years. It was all time highs when I bought in. It was all time highs when I was dollar cost averaging and it’s all time highs while I’m up over ~$110k in 2 years. My portfolio is roughly half ETFs and half in individual stocks... thinking of allocating 10% to btc

[marshallmason]

"Spend what you need" is not a withdrawal strategy. It's a lack of strategy. Rebalancing and shifting allocations is also not a withdrawal strategy. It's a portfolio management technique that everyone should be doing. Ultimately, you must always spend some percentage of your portfolio, and whether it is conscious or not, that percentage is your spending strategy.

[mzeller]

Just subscribed. 9 months until I pull my ripcord at 63 years old. Really enjoying your videos. Well done!

[JohnHobbs-oz]

If u have a large cash position for sequence of return risk, then almost none of this matters, simply take from portfolio or cash at end of year, depending if market is up or down, this allows u to have an all equity portfolio, which always comes back faster after major downturns.

[kejianniu]

Wade Pfau has a version of the guard rail strategy in his book that makes a lot of sense. It is to withdraw a fix percentage of the portfolio value every year but with a dollar amount ceiling and floor. It ties the withdraw amount to the portfolio value to a degree, relatively easy to execute, and probably supports much higher withdrawal % than 4%。

[daviddadamo]

This is an excellent summary of risks and benefits of the different approaches. I like that you say it should be personalized to each individual. The right strategy is what you are comfortable with and what you will stick to.

[Riggsnic_co]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[brianandbarikelly]

Great analysis. I like the idea of guardrails, but how do you know what to set them at and what initial withdrawal rate to use?

[bobgarrell]

Thanks for your video. I have been watching a lot of retirement videos, but haven't seen one that broke it down like this. It seems guard rails is a solid strategy, but I didn't understand where your value of $6, 762 came from. I assume this correlates to 81k yearly which is more than I would have thought with a $1M start. Do you have a video that explains that in more detail? Thanks again.😁

[Cesarinaella]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

[Yette]

Good information and analysis. I dont see the 4% rule being particularly hard to execute, I feel that ranking was too harsh.

[rationalthinker]

Actually based on USA health figures if you are average 65 year old with comorbidities such as hypertension, type 2 diabetes, raised BMI a 30 year withdrawal plan is not needed. Average Americans
are dead at 72

[camelaMar]

Great video, I’ve been thinking a lot about my retirement withdrawal strategy lately

[enr]

The 4% strategy was originally based on 2 asset classes when developed. The author of that strategy now thinks a 4.7% approach is more appropriate having tested it using 7 asset classes.

[allanspring]

Where is the algorithm or maybe web calculator where you could enter those several guardrail input values? And thanks, an insightful video.

[yvonneachieng]

Even though technically not a withdrawal strategy, would have been great to include the strategy of living only on portfolio income i.e dividends and interest.

[Donkeyearsa]

The meathead that I have decided to go with is being heavily invested in stocks with a safety net in short term bonds. I will cash out stocks when the market is going up to only slightly dropping and only withdrawing money out of the short term bonds when the market is going down. This gives me the most spending ability but still keeping a safety net. The only question is how long of a safety net do I want. In most retirement cases two years will do Ok but would I rather lose some returns just in case there is a prolonged down market.

[kennethwers]

This is the first time I heard of the guardrail system. Add a year of cash account. and less bonds. Would be what I would work in retirement.

[lowspeed]

4% rule spending for 10 years should be a minimum of 400, 000. Not sure how you got 148k.