Retirement Planning: Are You On Track?

Whether you are planning to retire or have already retired it is useful to know whether you’re on track to achieve your goals. So in this video, we’ll discuss how to set your goals, quantify them and build a portfolio that is likely to get you there. But also how to ensure that you stay on track once you are in retirement.

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Timestamps
00:00 Introduction
00:18 Clear Goals
01:09 Goal Into Numbers
01:49 Portfolio To Meet Your Goals
10:47 How To Stay On Track

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[MagicNash]

Once in a year obligatory video to satisfy the channel name decision🤣Not that Im complaining, I think its ironic that a PENSION named channel is better at general investing advice in terms of depth than most other channels

[glee]

thank you so much for such a carefully crafted lesson of a very complicated issue. i really enjoy your videos

[mcconchied]

Almost everything you need to know in 17 minutes. Really excellent video. I would be interested in your thoughts on rebalancing the short, medium and long term buckets during the drawdown phase to minimise pound cost raveging.

[battj]

That was ace...extremely helpful...thanks as always Ramin 👍!

[richard]

Great video, thanks Ramin. I hadn't come across guardrails before but they directly address some concerns I had about how to draw down in reality rather than a vague 4% or whatever.

[polmacdiarmada]

Best video I've seen on this subject. Nice work

[sailingtheworldwithgreengh]

Sailors! I love the fact that you are hearing from people who want to do that. We did for more than 14 years we travelled the seas covering more than 40, 000 miles. If you can save your money and keep it invested you actually make money while you travel. Your costs are much lower once away. I like your content and am a regular viewer. Retired, again and am never going back to work. Plan on sailing all summer long this year. Keep your videos coming.

[alexm]

My 'goal' is to save as much as I possibly can for retirement... and that's what I'm doing. When will I retire, I don't know. How much I'll have by then, I don't know. It's okay to have goals, but you can only save what you can save...

[ThomasBoyd-exvr]

Yes. Awesome. Brilliant content. Spot on

[mechthildhaeussler]

That was great, this topic is so strategic to all retirees. Never had been treated so well by any channel I am following. Evidence based AND practical (as always ... ;-). As a small contribution from the field (considering myself as retired for 5 years now): It turned out that I never spend the amount I had planned for any given month or even year (and wondering who really does). In general I am spending less, so I have come to consider my yearly "allowance" rather as a maximum limit. In my yearly "audit" I then decide whether to leave the difference in my portfolio for more security and comfort in the future, or rather put it into a special high interest savings account for "special treats" in the following years. Might have to put a cap on that, so I don't keep too much money lying around. Also about to apply a "glidepath" (rather than buckets) as developped by Michael Kitces, would you perhaps like to do a video on that?

[dubsdolby]

Retired at 53 using dividend blue chip stocks. Isa 480k 34 k income. Sipp 400 k 13k dividends. No tax as I use the £12570 personal allowance. Have around 180k in etfs sp500 nasdaq World tracker for growth. part.

[jdomsmith]

I feel like I have just enough time to be on track for retirement. I've taken the past year to design a retirement portfolio that I'm content with shoveling into: 50% dividend growth ETFs, 30% US market ETFs, 10% international ETFs, and 10% Berkshire...when I reach retirement, I will swap US market for covered call ETFs like JEPI, JEPQ, and SPYI

[jam]

Most experts never mention the scenario where you would like to retire early but don't really mind working for an extra, say, 5yrs. This gives an element of flexibility which would not be exploitable if you adopt a strict plan. Many people are a bit flexible and would be fine with this. Under such a scenario, you would not have to de-risk x yrs before a strict retirement goal. Instead you would de-risk x-5yrs before the retirement goal. Under most situations doing this, you would benefit from the high gains from the longer period of higher risk. If you were unlucky and your portfolio plummets then you could work for another 5yrs. Sure, for people who hate their work then it doesn't fly but lots of people don't mind working. It might be particularly applicable to people with higher job security e.g. civil servants, the successful self-employed or skilled experts.

[Tbc]

Great video but I think the description of the vanguard dynamic spending rule is slightly off.

My understanding (could be wrong) is that the income you take is the median of a) a set % of the portfolio value, b) the inflation-adjusted value of last year's withdrawal + cap, and c) the inflation-adjusted value of last year's withdrawal - collar. This way you combine both the 'pound plus' and 'fixed percentage' methods. Main drawback of VDS is that it usually reduces expected consumption quite heavily.

Guardrails are otherwise usually along the lines of: if return < 0% = no inflation adjustment, if return > 0% and <8% = inflation adjustment applied, and if return >8% = inflation adjustment +2% (to make up for years where there are no increases).

[milkboccle]

Good video as usual, but many people also qualify for state pension later on but I don’t see anyone factoring in that element

[koxuoww]

I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.

[jamesdaw]

I’ve got an idea for a video! Basically show buying an annuity v creating one yourself with bonds (ie get a Gilt that matures each year with the amount of money you need in that year). I’d be intrigued to see whether the insurers are making loads out of you? I guess inflation is the challenge - as I don’t think we can buy ILS.

[scotchegg]

What do you think the split between accounts should be upon retirement?

80% Pension
15% S&S ISA
5% Cash / savings

?

[darrenmcdermott]

i am interested in the way some commentators tend to complicate this whole process...The average time it takes for the markets to recover is 2.5 years, i am going to be fully invested in equities and have 3 years cash as the buffer. I am happy to accept the volatility (not risk as some people like to call it) for the upturn. the end

[jont]

Excellent as always Ramin. I'm using the 3 bucket approach myself as I'm only a couple of years from retiring. Isn't £25k out of £600k in fairly safe investments incredibly low? Based on the 4% rule you want to take out £24k in the first year alone, so not sure how that is protecting you for your first few years income.