Sheryl Rowling from Morningstar argues that the greatest danger in retirement isn't the stock market — it's the constant fear of running out of money.
We will walk through her eight "anchors" from the article posted on Morningstar.
Anchor 1: Confirm Your Sustainable Spending Level Anchor 2: Embrace Flexibility in Down Markets Anchor 3: Recognize That Spending Often Declines With Age Anchor 4: Create a Recession Buffer Anchor 5: Reduce Future Tax Uncertainty Anchor 6: Maximize Guaranteed Income Anchor 7: Protect Against Long-Term Care Costs Anchor 8: View Home Equity as a Backstop
For our listener question: I've said before that accumulation is the easy part - and distribution is harder. But Kevin wrote in to say "wait a second… don't prices move around when you're buying or selling? So what's the real difference?" We're going to unpack why dollar-cost averaging on the way in is not the same thing as sequence risk on the way out — and why that distinction matters once you're living off the portfolio.
And to wrap up the show, we'll hear from Bernie about how he is blending service & fun for an even better retirement.
Resource:
Article by Sheryl Rowling in Morningstar: 8 Tips to Stop Worrying About Running Out of Money in Retirement
Connect with Benjamin Brandt:
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
