Fabulous interview. One of my favourite parts is Kitces explanation of how retirement is built up to be this swan dive all or nothing, all or nothing life changing event. So well explained. As he said, for a lot of people, retirement is not a natural state of being -- you need a plan of what you are going to transition into.
The butcher vs nutritionist part was perfect. I feel like a lot of people in Canada think the people they meet with at a bank branch are the nutritionists when they're just butcher's. The part about advisers having minimums stuck with me. I know PWL has a minimum. Which I understand. It just limits us who want to work with you until later in life. There's lots of advice we could use at younger ages that would help us grow much more than we would alone. Especially with value cycles being so long by the time we get enough to work with you it'll only be for a decade or two before we retire. Missing out on the crucial younger years when we have time on our side.
Well, just save & invest as much as you can in S&P500 index fund when you are young. Read some good person financial books like Phycology of Money & The Real Retirement. You will be totally fine.
The bond tent (rising equity glide path) used to mitigate sequence risk has been in practice for over 30 years .in practice to shelter 60 to 70% of portfolio to spend down first in the early part of retirement in case of a severe bear market is a classic bucket strategy.
Not to shame limited savings until 40s. But numbers don’t lie. The time for compounding is reduced. For people literally start saving at 50, they’re late for the game especially now life span is surprisingly long. Not to say it’s meaningless to start late, it’s still good. It’s more the spending behaviours need many modifications, especially if the lack of savings is due to frivolous or careless spending, it’s important to make changes early on.
Why screw around with bond tents when you could just do coastFIRE and work part time (1/4, 1/3 of the previous hours) in your same high earning field (if you can) during the first few years, especially if things look grim?
I think because it might be that the concern is what happens s for the first decade, and that may not be feasible for all retirees. But I think it's a valid possible solution.
Really good interview guys, thanks! Michael had some interesting thoughts on how people spend their time in retirement (I didn't agree with all of them, e.g., at the 40 min. mark). Worth a read is Ernie Zelinski's 'How to Retire Happy, Wild and Free- Retirement Advice You Won't Get From Your Financial Advisor'. Preparing mentally for how we will spend our time in retirement is a worthwhile exercise.
Fabulous interview. One of my favourite parts is Kitces explanation of how retirement is built up to be this swan dive all or nothing, all or nothing life changing event. So well explained. As he said, for a lot of people, retirement is not a natural state of being -- you need a plan of what you are going to transition into.
The butcher vs nutritionist part was perfect. I feel like a lot of people in Canada think the people they meet with at a bank branch are the nutritionists when they're just butcher's.
The part about advisers having minimums stuck with me. I know PWL has a minimum. Which I understand. It just limits us who want to work with you until later in life. There's lots of advice we could use at younger ages that would help us grow much more than we would alone. Especially with value cycles being so long by the time we get enough to work with you it'll only be for a decade or two before we retire. Missing out on the crucial younger years when we have time on our side.
Well, just save & invest as much as you can in S&P500 index fund when you are young. Read some good person financial books like Phycology of Money & The Real Retirement. You will be totally fine.
When you young, just save as much as you can and utilize in S&P500 index ETF using TFSA or RRSP if your income is over $55K/year.
The bond tent (rising equity glide path) used to mitigate sequence risk has been in practice for over 30 years .in practice to shelter 60 to 70% of portfolio to spend down first in the early part of retirement in case of a severe bear market is a classic bucket strategy.
Not to shame limited savings until 40s. But numbers don’t lie. The time for compounding is reduced. For people literally start saving at 50, they’re late for the game especially now life span is surprisingly long. Not to say it’s meaningless to start late, it’s still good. It’s more the spending behaviours need many modifications, especially if the lack of savings is due to frivolous or careless spending, it’s important to make changes early on.
Wow. As an advisor myself, this was good stuff on the WPS vs IPS.
Such a great interview :)
How do you put yourself INSIDE the whiteboard?
Why screw around with bond tents when you could just do coastFIRE and work part time (1/4, 1/3 of the previous hours) in your same high earning field (if you can) during the first few years, especially if things look grim?
I think because it might be that the concern is what happens s for the first decade, and that may not be feasible for all retirees. But I think it's a valid possible solution.
Layperson here, surprised how interesting!
Really good interview guys, thanks!
Michael had some interesting thoughts on how people spend their time in retirement (I didn't agree with all of them, e.g., at the 40 min. mark). Worth a read is Ernie Zelinski's 'How to Retire Happy, Wild and Free- Retirement Advice You Won't Get From Your Financial Advisor'. Preparing mentally for how we will spend our time in retirement is a worthwhile exercise.