You’ve diligently saved and invested, and now comes the pivotal question: How do you live off those funds, especially in early retirement? We discuss the various withdrawal strategies, going beyond the basic 4% rule to explore dynamic and flexible approaches. Learn how to consider tax implications, access retirement accounts early without penalties, and build a resilient plan based on your specific situation and goals. Whether in the accumulation or spending phase, this will help you learn practical steps to create a thoughtful plan.
Andrew joins this week’s podcast as we talk about:
– The 4% rule and its limitations, especially for early retirees
– Strategies for accessing retirement funds before age 59 ½ without penalties
– Understanding and mitigating Sequence of Returns Risk (SORR) in early retirement
– Exploring dynamic withdrawal strategies beyond a fixed percentage
– Determining the optimal order for withdrawing from different account types for tax efficiency
– The importance of flexibility in spending
– Actionable steps for developing your personalized withdrawal plan
Show References:
- Inside Out Money episode #022 – How much do you need to retire? Flaws in the 4% rule
- Inside Out Money podcast #003 – How and why to invest in index funds
- Inside Out Money podcast #039 – What’s in our Wallet? Our index funds, accounts, and more
- Inside Out Money podcast #023 – 4 reasons HSAs are awesome and how to maximize the benefits of Health Savings Accounts
- Inside Out Money episode #067 – Two investment metrics you should understand – CAPE ratio and SORR
- Inside Out Money episode #055 – Our formula for how much to keep in your emergency fund
- Mad Fientist: Safe Withdrawal Rates
- Mad Fientist – How to access retirement funds early
- Cfiresim tool
- Early retirement now – withdrawal rate toolbox
- Projection Lab
- ETSY $3 life and money planning template
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eMail us at: insideoutmoneypod@gmail.com
