427 | Drawdown Strategies: Karsten vs. Fritz

ChooseFI

Brad Barrett | Choose FI Media

Financialindependence, Investing, Firemovement, Passiveincome, Frugalliving, Personalfinancepodcast, Daveramsey, Careers, Business, Earlyretirement, Habits

4.8 • 5K Ratings

🗓️ 6 March 2023

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this episode: the "average" withdrawal, Karsten's strategy, Fritz's strategy, fixed withdrawal rates, the bucket strategy, and refilling.

Preparing for retirement can look different for all on the journey to FI. All of our goals differ, but we are still in the mindset of positioning ourselves for the coming years. This week we are having a face-off between returning guests Karsten and Fritz, as they discuss their own receptive drawdown strategies, their advantages, and how you can best prepare yourself mentally and financially for your retirement. While a large part of preparing for retirement means saving, that does not mean you should be afraid to spend. Even in retirement, there are strategies that can allow you to not only spend comfortably within your means, but also spend confidently!

Fritz & Karsten:

Fritz's Website: theretirementmanifesto.com
Karsten's Website: earlyretirementnow.com

Timestamps:

1:35 - Introcution
2:09 - Karsten's Strategy
6:05 - Fritz's Strategy
13:28 - Fixed Withdrawal Rates
18:08 - Your Retirement Spending Mentality
23:01 - The Source Of The Bucket Strategy Debate
30:46 - Refilling The Buckets
40:40 - The Cheap Gimmick
45:13 - The Importance Of Rebalancing
51:03 - The Key Takeaways/The "Average" Withdrawal
59:06 - Conclusion

Resources Mentioned In Today’s Episode:

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Transcript

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0:00.0	Hello and welcome to Choose a Phi.
0:02.3	Today on the show, you asked and we answered.
0:05.4	So the biggest thing when I took over the show last year
0:09.8	that you responded you were interested in for an episode
0:12.9	was drawdown strategies.
0:14.7	We are talking about building up our assets
0:17.4	over a financial life, over our investing careers.
0:20.2	But what does it actually look like to draw down?
0:23.1	So I actually asked two of the preeminent thinkers
0:26.4	in the Phi community.
0:27.6	We have Karsten from early retirement now
0:30.2	and Fritz from the retirement manifesto
0:32.6	who are both multi-time guests here on the podcast.
0:35.4	I asked them to come on and talk about this
0:37.8	because interestingly, they both have different strategies
0:41.0	and even more interestingly, they both early retired
0:44.4	in June of 2018.
0:46.0	So not only have they been living this drawdown strategy
0:50.0	for four plus years now, but they've also gone through
0:53.5	a very interesting time, Neelissa Say,
0:55.8	with March 2020 and everything subsequent to that.
0:59.2	So I think that in and of itself is going to be interesting.
	...

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