Ep. 44 Dont Run Out Of Money in Retirement Do This Instead

Red Barn Financial Podcast

Don't Run Out of Money In Retirement.

When you are saving money and not withdrawing from your account it isn't important in what order gain years and loss years occur, you end up in the same place. When you are retired and you start drawing on those investments is when it can all go wrong. This is called Sequence of Returns risk.

In this Podcast video, I share what can go wrong that is out of your control and how you can plan to avoid running out of money with a simple technique that just requires you to plan ahead.

For example purposes, imagine you start out with $500,000 and you need to take out $100,000 per year. With no gains or losses that money would last you 5 years. Let's assume the first year your money lost 50%, you are now at $250,000, so the money will only last you 2.5 years. If you could instead not take out the $100,000 in that year and the following year the market recovered back to the $500,000, your money can last double what it would have otherwise lasted.

Here are the spreadsheets attached, or reach out to [e-mail] for the actual spreadsheet.

Disclaimer: The information contained in this podcast episode is not tax, legal or financial advice. Each person's circumstances are different and what might work for one person may not for another. Reach out to learn how this might apply to your situation, or contact another competent financial advisor.