In this conversation, Wade Pfau, Alex Murguia, and James Matthews discuss retirement income and the Retirement Income Style Awareness (RISA) framework. James shares his background in the retirement income space and his realization that traditional retirement planning advice was lacking. The conversation touches on the limited investment options in 401(k) plans and the need for a holistic view of retirement income. They also discuss the importance of risk management and the gaps in the current financial planning curriculum. Overall, the conversation highlights the need for a more comprehensive approach to retirement income planning. The conversation explores the need for a strategic approach to retirement income planning and the limitations of traditional retirement income paradigms. It emphasizes the importance of maximizing living standards in retirement and the need for open-mindedness in exploring different methodologies. The conversation also discusses the role of the Retirement Income Certified Professional (RICP) designation in addressing the gap in retirement income planning education. It highlights the shift towards a more client-focused and personalized approach to retirement planning and the potential applications of the RISA framework in other retirement decisions. The conversation concludes with a discussion on the importance of finding an advisor who embraces an open-minded and client-centric approach.

Takeaways

• Traditional retirement planning advice often lacks a comprehensive approach to retirement income planning.
• 401(k) plans typically offer limited investment options and lack clear mechanisms for converting assets into retirement income.
• The Retirement Income Style Awareness (RISA) framework provides a more holistic view of retirement income planning.
• Risk management is an important aspect of retirement income planning that is often overlooked.
• There is a need for improvements in the financial planning curriculum to better address retirement income planning. Retirement income planning requires a strategic approach beyond traditional paradigms.
• Maximizing living standards in retirement should be the primary goal.
• The RICP designation addresses the gap in retirement income planning education.
• A client-focused and personalized approach is crucial in retirement planning.
• The RISA framework can be applied to other retirement decisions.
• Finding an advisor who embraces an open-minded and client-centric approach is essential.

Chapters

00:00 Introduction and Background 09:59 The Retirement Income Style Awareness (RISA) Framework 23:21 The Importance of Retirement Income in ERISA 30:40 Applying the RISA Framework to Other Retirement Decisions 37:05 The Importance of Finding an Advisor with an Open-Minded Approach

Links

Join the Retirement Researcher team for "Travel in Retirement: New Options and Opportunities," with Dan Veto, CSA, to learn how travelling in retirement is different from the vacations you took while you were working - and how you can make the most of these differences. Register to attend LIVE on 7/23/24 at 1:00 PM ET by visiting risaprofile.com/podcast.

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

In this episode, Wade and Alex answer listener questions about portfolio allocation in retirement. They discuss the impact of low yields on TIPS and how it affects a retiree's portfolio. They also explore the optimal allocation of assets in taxable, tax-deferred, and tax-avoided accounts. Additionally, they address the role of annuities in retirement income and how they can replace the bond portion of a portfolio. They emphasize the importance of tax diversification and asset location. Finally, they provide insights on investing in stocks and the different factors to consider, such as value, small-cap, and REITs.

Takeaways

• Low yields on TIPS impact a retiree's portfolio and may require a reassessment of risk and allocation.
• Tax diversification is important, but the exact percentages in each type of account are not as crucial as asset allocation and asset location.
• Annuities can play a significant role in retirement income by providing protected lifetime income and reducing reliance on other investments.
• When investing in stocks, it is important to capture market risk and consider factors such as value, small-cap, and REITs.
• Growth indices may not necessarily provide a premium over value stocks in the long term.

Chapters

00:00 Introduction and Small Talk 02:45 Navigating Low Yields and Portfolio Allocation in Retirement 09:15 Optimal Allocation of Assets in Taxable, Tax-Deferred, and Tax-Avoided Accounts 25:58 The Importance of Tax Diversification and Asset Location 26:41 Investing in Stocks: Capturing Market Risk and Considering Factors

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this episode, Alex, Wade and Rob answer listener questions about retirement planning. They discuss topics such as asset allocation, selling RSUs, managing sequencing risk, and when to claim Social Security. They provide insights on diversification, tax implications, and the importance of considering both sequence risk and concentration risk. They also suggest strategies like creating a bond ladder and using IRA distributions to bridge the income gap. The episode ends with a plan to continue answering more listener questions in the next episode. Listen now to learn more!

Takeaways

• Consider the risks and benefits of holding concentrated positions, such as RSUs, in your portfolio
• Evaluate the tax implications of selling RSUs and consider the potential benefits of diversification
• Use Social Security claiming software to determine the optimal claiming strategy for both spouses
• Explore strategies like bond ladders and IRA distributions to bridge income gaps in retirement
• Balance the preservation of principal with the need for growth and income in your retirement portfolio

Chapters

00:00 Introduction and Q&A Format 05:42 Managing Concentrated Positions and Sequencing Risk 27:43 Creating a Bond Ladder to Bridge Income Gaps 29:54 Using IRA Distributions to Manage Tax Liability 35:23 Balancing Preservation of Principal with Growth and Income

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”