Dana Anspach: How to Build an All-Weather Retirement Plan

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Oct 18, 2022

Dana Anspach, Founder and CEO of Sensible Money, shares her insights on retirement planning and decumulation strategies. She dives into the impact of sequence risk on retirement savings and how to adapt plans amid rising inflation. Dana discusses the concept of varying spending patterns in retirement and the importance of budgeting for unexpected expenses. She also highlights the benefits of delaying Social Security benefits and using individual bonds for stability. Additionally, she addresses the unique needs of women investors in financial planning.

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ADVICE

Cover Near-Term Needs With A Runway

Build a runway of safe assets (CDs, treasuries, bonds) to cover near-term cash needs so equities need not be sold in downturns.
Use client-specific stress tests and a "critical path" rather than blanket rules to decide inflation raises.

ANECDOTE

Truck Purchase Revealed Hidden Spending

A client who reported $50,000 annual spending bought a $50,000 truck at retirement, revealing true spending was much higher.
That experience prompted Dana to dig deeper into realistic retirement expenses to avoid running out of money.

INSIGHT

Spending Often Falls Quickly After Early Years

Many retirees follow a go-go, slow-go, no-go spending pattern with spending often declining faster than expected.
Early high spending (travel, home projects) often settles into lower, contented spending within a few years.

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