Retire With Style

Wade Pfau & Alex Murguia
  • 3.9 (186)
  • Investing
  • Updated Weekly

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. 4d ago

    Episode 249: Why Your Tax Bracket Doesn’t Tell the Whole Story

    In this tax-focused episode of Retire With Style, Wade and Alex tackle listener questions about how taxes should influence retirement decisions, with a particular emphasis on Roth conversions, withdrawal sequencing, and tax diversification. They explain why retirement tax planning involves much more than simply “filling up” a tax bracket, since additional income can affect capital gains rates, Social Security taxation, Medicare IRMAA surcharges, deductions, and other parts of the tax system. They also explore when it may make sense to begin Roth conversions sooner, how retirees can strategically blend withdrawals from taxable and tax-deferred accounts, whether paying off a mortgage can compete with Roth conversions for available cash flow, and the role taxable brokerage accounts can play for early retirees. Throughout the discussion, the recurring message is that good tax planning requires looking at the interaction between taxes, spending, investments, and future income rather than optimizing any single decision in isolation. Listen now to learn more! Takeaways Tax brackets alone don’t tell you the true cost of additional income because capital gains, Social Security taxation, Medicare IRMAA, deductions, and other factors can change your effective marginal tax rate. If Roth conversions make sense for your situation, starting sooner may be better than waiting simply to preserve a lower tax rate today. Converting your entire traditional IRA to Roth isn’t automatically the goal because some future withdrawals or RMDs may ultimately be taxed at very low rates. Blending withdrawals from taxable and tax-deferred accounts can help manage taxes today while reducing future pressure from RMDs and Medicare surcharges. The best retirement tax strategy requires looking at the entire financial picture, including spending, Social Security, other income, investments, and future required distributions.   Chapters 00:00 Introduction 02:07 Upcoming tax planning challenge details and registration 04:02 Deep dive into how federal taxes impact retirement planning 06:39 Tax questions and strategies for Roth conversions at different ages 12:42 Case study: Managing withdrawals and tax brackets at age 60 19:40 Discussion on mortgage payoff strategies in retirement 26:32 Balancing taxable and tax-deferred assets for flexibility   Links Join us November 2nd–4th from 12–2 PM ET for our FREE, three-day Tax Planning Challenge. Wade Pfau will walk you through smarter year-end tax planning strategies, including Roth conversions and capital gains harvesting, with access to Retirement Researcher Academy's unique Tax Map Calculator to help you identify potential opportunities based on your own financial situation. Register now at retirewithstyle.com/taxchallenge 📘 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. Sep 29

    Episode 248: Are You Doing Roth Conversions the Wrong Way?

    In the final part of the Retire With Style Live Q&A, Wade and Alex tackle listener questions on tax-efficient retirement withdrawals, Roth conversions, Social Security, sequence-of-returns risk, annuities, and buffered ETFs. They explain why smart tax planning goes beyond simply filling tax brackets, how to think about Roth conversions with lifetime taxes in mind, and when strategies involving HSAs, MYGAs, and annuities may play a role. It’s a practical look at how the different pieces of a retirement income plan can work together. Listen now to learn more! Takeaways Tax brackets alone don’t tell the whole story: Roth conversion decisions should consider your effective marginal tax rate, including interactions with Social Security taxation, IRMAA, capital gains, deductions, ACA subsidies, and other tax provisions. The goal isn’t necessarily to eliminate your traditional IRA: Converting too much to Roth could leave you without enough taxable income later to take advantage of the standard deduction and other low-tax opportunities. Roth conversions can be front-loaded or spread over time: The better approach depends on the effective marginal tax rates available to you now versus those you may face later. Withdrawal sequencing should account for lifetime taxes, not just this year’s bill: Comparing taxable, IRA, and Roth withdrawals can help determine which source makes the most sense after considering the broader tax consequences. Saved HSA receipts may provide another strategic source for paying Roth conversion taxes: Qualified reimbursements could potentially provide tax-free funds in a year when a large conversion creates a significant tax bill. MYGA ladders can potentially serve double duty before Social Security: They may function as a buffer asset during poor markets while allowing interest to remain tax-deferred when the funds aren’t needed, preserving room for Roth conversions. Buffered ETFs trade some market upside for downside protection: They can potentially fill a structured-return role similar to certain indexed annuities when lifetime income guarantees aren’t the objective. Paying Roth conversion taxes from an IRA isn’t automatically a mistake: For those at least 59½, Wade notes that it can be workable, provided the additional taxable distribution needed to pay the tax is included in the conversion calculations.      Annuities inside an IRA may have an unexpected RMD-planning role: Wade describes emerging “RMD Shield” research examining whether annuity payments can help satisfy RMD requirements while reducing required distributions from other IRA assets and potentially preserving a larger legacy. Chapters 00:00 Introduction to Retirement Tax Strategies 02:10 How the Tax Map Calculator Helps Minimize Taxes 04:03 Planning Roth Conversions and Managing RMDs 06:06 Using HSA Receipts for Tax Efficiency 08:01 Understanding IRMA Thresholds and Future Planning 11:05 Evaluating Roth Conversion Strategies: Gradual vs. Upfront 13:08 Effective Marginal Tax Rate and Its Importance 15:59 Handling Insufficient Assets for Roth Conversions 18:05 Buffered ETFs and Annuities as Retirement Tools 22:10 Paying Taxes from IRA and Managing Infinite Loops 25:04 Using Annuities to Reduce RMDs and Boost Legacy 26:50 Future Research and White Paper on RMD Shield   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. Sep 22

    Episode 247: Is the 4% Rule Still Relevant? What the Retirement Math Says

    In this episode of Retire with Style, Wade and Alex tackle listener questions spanning some of the most important decisions retirees and pre-retirees face, including tax planning, Roth conversions, annuities, withdrawal strategies, and preparing for an uncertain future. They explore tax traps that can arise from preferential income stacking, Medicare IRMAA, and other income-related phaseouts; break down the pros and cons of QLACs; and explain why the traditional 4% rule may work better as a rough planning benchmark than as a real-world retirement spending strategy. The conversation also examines how investors should think about asset allocation in the age of AI, the challenges of funding a very early retirement, and how TIPS, annuities, liquidity, and spending flexibility can work together. They close by discussing annuity safety and why even seemingly secure retirement strategies still involve tradeoffs and risks. Listen now to learn more.  Takeaways The 4% rule can provide a rough retirement savings target, but fixed inflation-adjusted withdrawals rarely reflect how people actually spend throughout retirement. Retirement tax planning requires looking beyond your tax bracket because capital gains stacking, NIIT, Medicare IRMAA, and deduction phaseouts can increase your effective marginal tax rate. QLACs can provide late-life income while delaying RMDs on the premium, potentially making them useful for longevity planning and certain long-term care strategies. Rather than trying to predict how AI will affect markets over the next five or ten years, investors should recognize that current expectations are continually being incorporated into market prices. A Roth conversion strategy should focus on the effective marginal tax rate, not simply filling a particular federal income tax bracket. Retiring in your 40s or early 50s makes guaranteed lifetime income considerably more expensive, which can make spending flexibility especially important for early retirees. A safety-first retirement strategy still needs to preserve capital outside the income floor for discretionary spending, inflation risk, and expenses that may increase later in life. People concerned about a forced early retirement may benefit from maintaining liquid, accessible assets outside retirement accounts while continuing to save aggressively. Annuities are not completely risk-free, although contractual protections, insurer financial strength, and state guarantee systems provide layers of protection for policyholders. Chapters 02:06 Tax Traps When Delaying Social Security and Medicare 04:07 Understanding Qualified Longevity Annuity Contracts (QLACs) 06:04 Pros and Cons of QLACs for Long-Term Care and Income 07:49 The Limitations of the 4% Withdrawal Rule 10:14 Asset Allocation and the Era of AI in Investing 12:01 Early Retirement Planning and Risk Pooling Tools 14:04 Risk Management and Safety Nets for Insurers 15:57 Tax Planning Strategies for Roth Conversions 17:59 Managing Income and Tax Efficiency in Retirement 20:01 Long Horizons and Annuity Efficiency for Young Retirees 21:55 Balancing Guaranteed Income Floors with Growth Assets 23:52 Short-Term Liquidity and Career Uncertainty 26:02 Risk of Multiple Insurer Failures and Economic Scenarios   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. Sep 15

    Episode 246: Why 100% Bonds May Not Be the Safest Retirement Portfolio

    In this live Retire With Style Q&A, Wade Pfau and Alex Murguia tackle a wide range of retirement planning questions, including Social Security survivor benefits for divorced spouses, using home equity as a retirement buffer, managing sequence-of-returns risk, building conservative portfolios, Roth conversions, and annuity planning. They explain why a HECM reverse mortgage can function as a more reliable buffer asset than a HELOC, revisit the role of a rising equity glide path in retirement, and discuss how Social Security, QLACs, TIPS, and portfolio diversification can help address longevity and inflation risks. The episode also explores why even highly conservative retirees may benefit from modest stock exposure, why short-term market timing should not dictate Roth conversion decisions, and the practical hurdles involved in exchanging or restructuring existing immediate annuities. Listen now to learn more!   Takeaways A divorced spouse may qualify for an ex-spouse survivor benefit if the marriage lasted at least 10 years and remarriage occurred after age 60. Social Security benefits generally do not “stack”; eligible retirees effectively receive the highest benefit available to them through their own benefit plus any applicable top-off. A HECM reverse mortgage can serve as a retirement buffer asset because its line of credit is designed to remain available during periods of market stress, unlike a HELOC that may be frozen or reduced. Rising equity glide paths remain a viable strategy for managing sequence-of-returns risk and can be implemented differently depending on a retiree’s retirement income style. Delaying Social Security can provide valuable inflation-adjusted lifetime income, while a QLAC can add reliable income later in retirement to help manage longevity risk. Even retirees with all essential expenses covered by Social Security may benefit from holding a modest stock allocation rather than keeping 100% of their portfolio in fixed income. TIPS can provide an additional layer of inflation protection for conservative investors who want to maintain a substantial fixed-income allocation. Roth conversion decisions generally should not be driven by fear that the market might decline immediately after the conversion, since short-term market movements are impossible to consistently predict. From an asset-location perspective, higher-growth assets such as stocks may be particularly valuable in Roth accounts because their future gains can potentially grow tax-free. Existing SPIAs are typically irreversible, which can make exchanging a joint annuity for a different insurer or restructuring it as a single-life annuity difficult or impossible Chapters 00:00 Introduction to Retirement Strategies 01:48 Social Security Benefits for Ex-Spouses 03:53 Using Buffer Assets: HECMs vs HELOCs 05:52 The Rising Equity Glide Path in Retirement 10:57 Managing Sequence of Returns Risk 14:01 Delaying Social Security and Using QLACs 17:03 Asset Allocation for Safety and Inflation Protection 20:00 Asset Location and Bond Ladder Strategies 22:04 Roth Conversions and Asset Management 25:59 Annuities and Protecting Income 26:54 Switching from Joint to Single Annuities   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. Sep 8

    Episode 245: Retirement Withdrawals: When to Use Your Portfolio, When to Use a Buffer

    In this episode of 'Retire with Style', hosts Alex Murguia and Wade Pfau discuss various aspects of retirement planning, including the importance of finding purpose in retirement, strategies for asset allocation and location, understanding retirement expenses, planning for long-term care, and investment strategies. They emphasize the need for a structured approach to retirement income and the significance of having a volatility buffer to manage market fluctuations. The conversation is rich with insights and practical advice for those preparing for retirement. Listen now to learn more!   Takeaways Retirees need a purpose to retire, which can be explored through workshops. Asset allocation should consider pre- and post-Social Security phases. A social security delay bridge can help manage withdrawals before benefits start. Retirement expenses can vary significantly based on personal circumstances. The 80% replacement rate rule is a common guideline for post-retirement spending. Long-term care expenses should be planned for conservatively, with a reserve fund in mind. Investment strategies should adapt to market conditions and personal risk tolerance. A volatility buffer can help manage sequence of returns risk in retirement. Using a total return strategy can provide flexibility in spending during retirement. It's important to have quantitative guardrails for investment strategies to avoid emotional decision-making. Chapters 02:51 Finding Purpose in Retirement 06:10 Asset Allocation and Location Strategies 11:56 Understanding Retirement Expenses 18:08 Long-Term Care Planning 23:53 Investment Strategies for Retirement 29:58 Volatility Buffer Strategies Links  Join Wade and Alex tomorrow, September 9, from 12–1:30 PM ET for a live Retire With Style YouTube Q&A! Bring your retirement planning questions, from Social Security and tax planning to investment strategies, and get answers in real time. Submit your questions in advance at retirewithstyle.com/contact, and visit retirewithstyle.com/live to be notified when we go live. 📘 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. Sep 1

    Episode 244: Why Being Safety-First Doesn’t Mean You Need an Annuity

    In this episode of 'Retire with Style', hosts Alex Murguia and Wade Pfau discuss various aspects of retirement planning, including the importance of tax planning, the role of annuities in income protection, and strategies for managing inflation risk. They also touch on the upcoming YouTube live session focused on tax questions and the significance of understanding one's retirement income style awareness (RISA). The conversation emphasizes the need for a reliable income floor and the evaluation of whether additional annuities are necessary based on existing income sources like Social Security and pensions. Listen now to learn more!   Takeaways Tax planning is crucial as retirement approaches. Social Security can provide inflation-adjusted income. Annuities can fill income gaps but may not be necessary for everyone. Understanding RISA helps tailor retirement strategies. Inflation risk is a significant concern for retirees. Building a reliable income floor is essential for financial security. Different investments can bridge income gaps during retirement. It's important to evaluate existing income sources before purchasing annuities. Chapters 04:30 Upcoming YouTube Live and Tax Planning 06:37 Understanding Safety First and Income Protection 11:55 Inflation Risk and Annuities 14:35 Building a Social Security Delay Bridge 17:08 Risk Wrap and SPIAs for Essential Expenses 20:18 Different RISA Points for Different Purposes 22:25 Evaluating the Need for Annuities   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. Aug 25

    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

  8. Aug 18

    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”

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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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