Episode 87: 3 Listener Questions about Retirement Planning

Today’s Prep:

Should you follow the “Rule of 100”? Are you wanting to retire sooner than originally planned? Where should your retirement income come from? David answers these listener questions on today’s episode of Cover Your Assets KC.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Today, we cover three questions from our listeners that cover important topics in the financial world that all relate to retirement. Whether you are preparing for retirement or ready to withdraw retirement funds, David is here to answer your questions on how to retire well.

What is the rule of 100? And what does it mean? For example, if you are 30 years old, subtract your age from 100, which then means you should have about 70 percent of your investments in stocks and 30 percent in safer options. Should you follow this rule of thumb? David says the less money you have, the more applicable this rule is.

Which account should you take from first in retirement? Should you go to Social Security, IRA accounts, mutual funds, or cash from the bank? In retirement, what you want to do is protect yourself from going into the next highest tax bracket. So, money from a Roth IRA doesn’t impact your tax bracket. Which accounts will impact your taxes most? Also remember, taking out too much retirement income can cause your Medicare to become more expensive.

One listener is 64 years old and planned on retiring in the next two years, but can’t handle it anymore at work. What do you need to have in place to retire sooner than planned? Ideally, putting a retirement plan in place ten years before retirement is best. Do you know your sources of income? What guaranteed sources of income do you have? What does your budget and expenses include? Are you accounting for inflation? What is your Social Security claiming strategy?

Are any of these questions you’ve also been wondering about? Listen to the entire episode or click on the timestamps below to hear a specific question. Feel free to reach out to David to meet or ask a question of your own!

[1:02] – Mailbag: Can you explain the rule of 100?

[4:34] – Mailbag: Which account should you withdraw from first in retirement?

[8:08] – Mailbag: What do I need to have in place to retire earlier than originally planned? 

[9:45] – What will you spend in retirement?

[12:07] – What is your Social Security claiming strategy?

[13:54] – When can I retire?

Today’s Takeaway:

“The older you get–the closer you are to retirement or into retirement–the less you want to be exposed to the volatility that happens in the stock market.”

– David Dickens

Additional Resources:

PODCAST: What Your 401(k) Rollovers Options Are

PODCAST: How to Prepare for Early Retirement


More From David:

The host: David Dickens

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