Retirement Withdrawals: What's a Safe Distribution Rate? - 450

Your Money, Your Wealth

Realestate, Income, Investing, Personalfinance, 401k, Rothconversion, Retirement, Education, Taxes, Socialsecurity, Personalfinances, Finance, Retirementplanning, Investments, Stocks, Business, Roth, Fiduciary, Ira

2.3 • 681 Ratings

🗓️ 10 October 2023

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

How much can you safely spend in retirement? Is the four percent rule outdated? Joe and Big Al spitball on a safe retirement distribution rate for those in the 55-60 age range for Clay in Ohio. They also spitball on withdrawal rates when there’s a pension in the mix for Jonny and June in the Bay Area of California, and for William in Maryland, who is concerned he might be exposing himself to sequence of returns risk by spending too much in early retirement. Plus, when does Dan have to take required minimum distributions from the IRA he inherited from his Dad in 2021? Finally, Wayne in San Diego wants to know how to protect his bank accounts from FedNow, the Federal Reserve’s new peer-to-peer payment system.

Timestamps:

00:53 - What’s a Safe Retirement Distribution Rate? (Clay, OH)
07:57 - Can We Retire at Ages 50 and 48? (Johnny & June, East Bay, CA)
19:01 - Spitball My Retirement Withdrawal Rate (William, MD)
24:50 - When Am I Required to Take Money From My Inherited IRA? (Dan)
28:54 - How to Protect Money From FedNow? (Wayne, San Diego)
32:37 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-450

Withdrawal Strategy Guide - free download
Withdrawal Trap Doors: How to Avoid Them! YMYW TV
Episode Transcript
Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Transcript

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0:00.0	How much can you safely spend in retirement? Is the 4% rule outdated? Today on Your Money,
0:06.0	your wealth podcast number 450, Joe and Big Al spitball on a safe retirement distribution rate
0:12.0	for those in the 55 to 60 age range for Clay in Ohio. They also spitball on withdrawal rates
0:18.1	when there's a pension in the mix for Johnny and June in the Bay Area of
0:21.5	California and for William in Maryland, who's concerned he might be exposing himself to sequence
0:26.8	of returns risk by spending too much in early retirement. Plus, when does Dan have to take required
0:32.6	minimum distributions from the IRA he inherited from his dad in 2021. And finally, Wayne and San Diego
0:39.3	wants to know how to protect his bank accounts from Fed Now, the Federal Reserve's new peer-to-peer
0:44.3	payment system. I'm producer Andy Last, and here are the hosts of Your Money, Your Wealth,
0:49.3	Joe Anderson, CFP, and Big Al Clopine CPA. We got here, Clay from Ohio. In a perfect spitball world. Now we have perfect spitball worlds.
1:01.7	Yeah. There's no such thing, by the way, but we try to get as close as we can.
1:06.6	What is the highest distribution rate that you would feel relatively safe? If you throw out some percentages out there for us planning starting at 55 up to 60.
1:16.7	Okay.
1:17.7	55.
1:20.1	Three or less?
1:22.2	Yeah, I'd say three tops.
1:24.5	Yeah.
1:24.8	At 60, I'd say three and a half tops.
1:28.2	But I mean, there's so many variables, right?
1:31.1	So here's the distribution rate.
1:33.3	And I think I've said this a couple of times.
1:35.9	But it's just to get you in the same ballpark or the area.
	...

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