Retire With Style

Wade Pfau & Alex Murguia
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The purpose of Retire With Style is to help you discover the retirement income plan that is right for you. The first step is to discover your retirement income personality. Your hosts Wade Pfau, PhD, CFA, RICP and Alex Murguia, PhD walk you through creating and implementing a retirement plan that will help you reach your goals, and that you’ll be able to stick with. Start by going to risaprofile.com/style and sign up to take the industry’s first financial personality tool for retirement planning.

  1. 1 day ago

    Episode 243: Why Annuities Aren’t Really Investments

    In this episode of Retire with Style, Wade Pfau and Alex Murguia delve into various retirement income strategies, focusing on hybrid approaches that combine time segmentation and income protection. They discuss the optimal withdrawal order from retirement accounts, the importance of blending in tax planning, and the nuances of using inherited IRAs for tax payments. The conversation also covers the evaluation of Roth conversions, the complexities of annuities, and how to identify poorly designed products. Throughout, they emphasize the distinction between viewing annuities as investments versus insurance contracts, providing listeners with valuable insights for their retirement planning. Listen now to learn more!   Takeaways Hybrid strategies can combine time segmentation and income protection. The conventional wisdom is to withdraw from taxable accounts first. Blending spending from different accounts can optimize tax efficiency. Inherited IRAs can be used to pay taxes, but may increase taxable income. Roth conversions should be evaluated annually for tax implications. Annuities should be approached with caution due to potential high costs. Look for transparency in annuity fees and terms. Not all annuities are designed equally; some may be poorly structured. Annuities serve as insurance against outliving assets, not just investments. Understanding the purpose of annuities is crucial for effective retirement planning.   Chapters 00:00 Exploring Hybrid Strategies in Retirement Income 03:08 Withdrawal Order: Roth vs. IRA Accounts 05:50 Understanding Blending in Tax Planning 08:51 Using Inherited IRAs for Tax Payments 11:59 Evaluating Roth Conversions Annually 15:14 Navigating Annuities: Finding the Right Fit 17:49 Identifying Poorly Designed Annuities 21:06 Annuities as Insurance vs. Investments   Links 📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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

  2. 18 Aug

    Episode 242: Why Playing It Safe in Retirement Can Actually Be Risky

    In this episode of 'Retire with Style', Alex Murguia and Wade Pfau dive into various aspects of retirement planning, focusing on Social Security benefits, military survivor benefits, essential expenses, investment strategies, and the comparison between bond ladders and annuities. They discuss the implications of Social Security trust fund depletion, the importance of reliable income sources for essential expenses, and the need for a conservative investment approach in retirement. The conversation also highlights the benefits and drawbacks of TIPS and annuities, providing listeners with valuable insights for their retirement planning. Listen now to learn more!   Takeaways Assuming 78% of Social Security benefits is a conservative approach. Social Security is not failing; trust fund depletion is a reform issue. Military survivor benefits generally do not affect Social Security benefits. Essential expenses should ideally be covered by reliable income sources. Investment strategies should shift towards conservative allocations in retirement. Bond ladders provide a structured approach to managing fixed income needs. TIPS can offer inflation protection but lack liquidity after maturity. Annuities provide lifetime income but may sacrifice liquidity. Chapters 00:00 Introduction to Social Security Planning 05:53 Military Survivor Benefits and Social Security 11:55 Investment Strategies in Retirement 18:02 Replenishing the Bond Ladder   Links 📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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”

  3. 11 Aug

    Episode 241:Can AI Build Your Retirement Withdrawal Strategy?

    In this Q&A episode of Retire With Style, Alex and Wade tackle several questions about building and managing a retirement income strategy, beginning with whether AI is ready to recommend optimal withdrawal strategies and where human expertise still matters. They discuss how retirees can assemble a coordinated team of financial, tax, and estate-planning professionals before turning to the role of reliable lifetime income in retirement portfolios. Wade explains why partially annuitized strategies can potentially improve spending outcomes and legacy wealth by reducing withdrawal pressure and sequence risk, while emphasizing that different retirement income styles call for different approaches. The episode closes by reframing the meaning of “risk” in retirement: rather than simply measuring investment volatility, retirement risk is ultimately about the probability and magnitude of failing to meet your financial goals. Listen now to learn more!   Takeaways AI isn’t ready to manage complex retirement withdrawal strategies on its own. A financial advisor can coordinate the tax, estate, and investment pieces of retirement planning. Annuities can reduce portfolio withdrawals and help manage sequence risk. Pensions, Social Security, and annuities can create a reliable retirement income floor. Retirement risk is ultimately the risk of not being able to meet your financial goals. Withdrawal strategies should be compared using the same assumptions to get a true apples-to-apples comparison. Lifetime income can reduce withdrawal pressure and give the remaining portfolio more opportunity to grow. A “safe” investment can still be risky if it prevents you from meeting your retirement goals. Chapters 00:00 Introduction and episode overview 02:36 Can AI optimize withdrawal strategies? 04:20 Tools for retirement spending strategies 07:09 Role of human advisors versus AI solutions 08:28 Assembling a retirement planning team 15:52 Partial annualized portfolios outperforming total returns 21:17 Are pensions a form of income protection? 23:00 Defining risk in investment and retirement   Links 📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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

  4. 4 Aug

    Episode 240: Does Sequence Risk Last Longer Than You Think?

    In this episode of Retire with Style, Alex Murguia and Wade Pfau explore how to manage retirement portfolios through the lens of sequence of returns risk. They discuss why the first decade of retirement is so critical, how longer retirement horizons can influence planning decisions, and where I bonds fit within an overall asset allocation strategy. Along the way, they examine the tradeoffs of I bonds, including tax deferral, inflation protection, and liquidity constraints, and share practical insights for balancing cash and bond holdings to support a more resilient retirement income plan. Listen now to learn more!   Takeaways The first ten years of retirement significantly impact financial outcomes. Sequence of returns risk decreases with a longer retirement horizon. Adjusting spending can mitigate sequence of returns risk. I bonds offer tax deferral benefits but have liquidity constraints. The gift box strategy allows for increased I bond purchases. Buffer assets can provide financial security during market downturns. It's essential to track your portfolio against your starting balance. Replenishing cash or bond allocations should be based on portfolio performance. Simple rules can be effective for managing retirement finances. Flexibility in spending is crucial for successful retirement planning. Chapters 00:00 Understanding Sequence of Returns Risk 09:00 Exploring I Bonds and Their Role in Retirement 18:09 Strategies for Managing Cash and Bond Allocations   Links 📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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”

  5. 28 Jul

    Episode 239: Are You Overinvested in Bonds? The Retirement Math May Surprise You

    In this episode of 'Retire with Style', hosts Alex Murguia and Wade Pfau delve into various aspects of retirement planning, focusing on asset allocation, risk capacity, and the importance of Social Security strategies. They discuss the household balance sheet approach, the differences between risk capacity and risk tolerance, and the pros and cons of annuities versus TIPS for income generation. The conversation emphasizes the need for personalized financial planning and the significance of understanding one's retirement income style. Listen now to learn more!     Takeaways Asset allocation is crucial for retirement planning. A 90-10 portfolio may be suitable for affluent investors. Reliable income sources allow for more aggressive investment strategies. Risk tolerance affects investment decisions during market volatility. Social Security can be viewed as a valuable annuity. The household balance sheet approach helps assess financial health. Older individuals may benefit more from annuities due to longevity risk. Understanding personal financial goals is essential for effective planning. TIPS can provide inflation protection, but annuities offer guaranteed income. Taking a retirement income style assessment can clarify investment strategies. Chapters 00:00 Introduction and Hydration Breaks 01:27 Asset Allocation and Retirement Planning 10:36 Risk Capacity vs. Risk Tolerance 11:06 Household Balance Sheet Approach 19:37 Social Security Strategies 29:14 Annuities vs. TIPS for Income 34:16 Conclusion and Future Plans   Links  📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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

  6. 21 Jul

    Episode 238: SpaceX, Mega-IPOs, and Indexing: When to Buy, When to Wait

    In this episode of 'Retire with Style', Wade Pfau and Alex Murguia dive into the implications of the SpaceX IPO, exploring its unique characteristics, the risks associated with investing in IPOs, and the historical performance of such investments. They discuss the impact of index funds on IPOs and the broader lessons investors should consider when navigating the market, particularly in light of the excitement surrounding mega IPOs like SpaceX. Listen now to learn more!   Takeaways SpaceX's IPO is historically unique due to its unprecedented size. Investors should be cautious about the hype surrounding IPOs. Historical data shows that IPOs often underperform compared to established companies. The excitement of an IPO does not guarantee a good investment. Index funds can create forced buying and selling dynamics during IPOs. Investors should understand the methodology behind index funds. Not all IPOs are created equal; some may not be profitable. The performance of passive funds can vary significantly based on index rules. Investors should focus on long-term strategies rather than chasing trends. Understanding the risks associated with mega IPOs is crucial for investment success. Chapters 00:54 The Unique SpaceX IPO 04:05 Investor Sentiment and IPO Risks 07:03 Historical Performance of IPOs 11:59 Impact of Index Funds on IPOs 18:00 Broader Lessons for Investors   Links 📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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”

  7. 17 Jul

    Clarification on Ep. 237 HSA Rules for Beneficiaries

    In this episode, Alex and Wade clarify important aspects of Health Savings Accounts (HSAs), particularly focusing on the rules surrounding beneficiaries. They address common misconceptions about what non-spousal beneficiaries can do with HSA receipts after the account holder's death and emphasize the importance of utilizing HSA funds during one's lifetime. The discussion also touches on the implications for charitable giving when it comes to HSAs. Listen to the full episode here.

  8. 14 Jul

    Episode 237: Should You Spend Your HSA or Let It Grow?

    In this episode of 'Retire with Style', Alex Murguia and Wade Pfau dive into tax planning strategies, focusing on Roth conversions, effective marginal tax rates, and withdrawal strategies for retirement. They discuss the implications of current tax rates, the importance of blending techniques in tax planning, and the necessity of tax diversification for a successful retirement. The conversation is driven by listener questions, providing practical insights for navigating complex tax scenarios in retirement. The conversation dives into various aspects of retirement planning, focusing on Roth IRAs, Health Savings Accounts (HSAs), and annuities. They discuss the rules surrounding Roth IRAs, particularly the five-year requirement for qualified distributions. The conversation shifts to HSAs, highlighting their tax benefits and strategies for spending versus saving. Finally, they explore the complexities of managing annuities in relation to Required Minimum Distributions (RMDs), emphasizing the importance of understanding contract values and the implications of delaying income streams from annuities. Listen to now to learn more!    Takeaways  Roth conversions can be beneficial for legacy planning. You need to work through the math of conversions. Tax rates are at a historical low right now. Blending techniques can optimize your tax strategy. You can't just solve it mathematically. It's complicated; we need better software. What's my tax rate today versus in the future? Forty percent might be reasonable for Roth conversions. You want to always be blending your distributions. Tax diversification is crucial for retirement planning. You need to have had a Roth IRA open for at least five years. Inheriting HSAs can lead to tax implications for beneficiaries. HSAs provide tax-free distributions for qualified medical expenses. It's important to keep receipts for HSA distributions. Using HSAs strategically can aid in tax planning during retirement. RMDs must be taken from both IRAs and annuities. Delaying income from annuities may not be the best strategy. Spending down annuity contract value can maximize benefits. Understanding contract value is crucial for annuity holders. RMDs from annuities can be complex and require careful planning. Chapters 00:00 Introduction and World Cup Banter 01:49 Tax Planning Questions Begin 02:29 Roth Conversions and Tax Brackets 07:18 Analyzing Effective Marginal Tax Rates 11:23 Historical Tax Rates and Future Predictions 13:39 Withdrawal Strategies for Retirement 15:08 Blending Techniques in Tax Planning 21:08 The Importance of Tax Diversification 21:54 Understanding Roth IRA Rules 23:20 Navigating Health Savings Accounts (HSAs) 27:14 Tax Benefits of HSAs Explained 29:52 Strategies for Managing Annuities and RMDs   Links 📣 Want a heads up for the next Retirement Income Challenge? Join the waitlist and be the first to know when registration opens for this FREE 4-day event hosted by Retirement Researcher. Visit retirewithstyle.com/RIC to learn more and save your spot. 📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement 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

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About

The purpose of Retire With Style is to help you discover the retirement income plan that is right for you. The first step is to discover your retirement income personality. Your hosts Wade Pfau, PhD, CFA, RICP and Alex Murguia, PhD walk you through creating and implementing a retirement plan that will help you reach your goals, and that you’ll be able to stick with. Start by going to risaprofile.com/style and sign up to take the industry’s first financial personality tool for retirement planning.

Information

  • Creator
    Wade Pfau & Alex Murguia
  • Years Active
    2022 - 2026
  • Episodes
    100
  • Rating
    Clean
  • Copyright
    © Copyright 2022 All rights reserved.
  • Show Website
    Retire With Style

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