043 | Retirement Drawdown Strategy: How to Spend Your Savings

ChooseFI | Financial Independence Podcast

Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc

Investing, Business, Careers

4.8 • 5.2K Ratings

🗓️ 1 October 2017

⏱️ 76 minutes

🔗️ Recording | iTunes | RSS

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Summary

Most retirement podcasts obsess over building wealth — but almost nobody talks about the harder part: spending it without running out. Fritz from Retirement Manifesto tackles the decumulation phase that conventional advice ignores, sharing his blueprint for strategically withdrawing from decades of accumulated assets while managing taxes, healthcare costs, and sequence of returns risk. Fritz shares his background and path toward retiring at age 55 after 33 years in corporate America, emphasizing balancing aggressive savings with enjoying life along the way. Understanding Drawdown Strategies [00:15:47] A drawdown strategy involves planning how to withdraw funds from retirement accounts while minimizing risks and ensuring lasting income throughout retirement. "Strategically withdrawing from a lifetime of resources is essential." [00:15:47] Fritz's Personal Journey to Retirement [00:06:31] Fritz shares his background and path toward retiring at age 55 after 33 years in corporate America, emphasizing balancing aggressive savings with enjoying life along the way. The Importance of Asset Allocation [00:31:48] Discusses the significance of having a balanced approach between stocks and bonds as retirement nears. "A 3% withdrawal rate allows for a more conservative investment approach." [00:36:37] Self-Insurance vs. Long-Term Care Insurance [01:01:30] Fritz explains his decision to self-insure for long-term care instead of purchasing insurance. "Opt for self-insurance; it can lead to greater long-term wealth." [01:03:11] Planning for Healthcare Costs [00:46:30] Integrating healthcare cost planning into retirement strategies to prevent financial strain. Fritz's Hot Seat [01:05:36] Quick-fire questions covering his favorite blog, biggest financial mistakes, and advice for younger selves. Key Quotes: "Decumulation is just as crucial as accumulation; don't overlook it." [00:05:14] "Embrace the power of compounding—start saving early and save big." [01:10:46] Related Resources: The Retirement Manifesto Blog [01:13:24] ▶ Listen Next: Ep. 047 — The Case Against Home Ownership and the Power of Geographic Arbitrage | Essential Listening

Transcript

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0:00.0	Your listening to Choose Appi Radio.
0:09.6	The blueprint for financial independence lives here.
0:20.4	If you're looking to unlock the secrets to financial independence and early retirement,
0:25.4	you're in the right place.
0:27.2	Stay tuned and join a community of like-minded people who are getting off the answer.
0:32.2	And taking control of their lives in the pursuit of financial independence.
0:36.3	Choose FI, your home for financial independence online.
0:43.2	Alright guys, well today we're very excited to get a chance to tackle this episode.
0:55.3	We've been promising that we were going to bring on a true expert to help us tackle this
0:59.2	idea of implementing a drawdown strategy.
1:02.8	This is one of those advanced techniques that you have to cover the basics before you
1:06.3	can get to this.
1:07.3	You don't just start with drawdown strategy.
1:08.9	You talk about investing strategy.
1:10.5	You talk about risk tolerance.
1:12.3	You talk about what is your ultimate goal.
1:14.9	Where are you heading?
1:15.9	Where do you want to end up?
1:16.9	But once you've covered the baselines, including things like sequence of returns, now you're
1:20.2	ready to start talking about how do you implement your drawdown strategy.
1:24.2	In our minds, there was no one better to help us tackle this somewhat complicated topic
1:28.1	than Fritz from Retirement Manifesto.
	...

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