How Much Can I Spend in Retirement? - October 16 Case Study:

In this case study we talked about how to build a good retirement spending estimate, how to stress test those spending assumptions and what the percentage on the ‘Success Chart’ actually means.

We then worked through Dave and Bonnie's plan: a 50 year old couple aiming to retire at 55. They currently have 1.2 million in assets saved, no pension and want to spend around $80,000 per year. We’ll tested to see if early retirement is possible and how they can see the pros and cons of spending cuts vs working a few years longer.

• 4:30 - How to Build a Baseline for Your Retirement Spending
• 20:45 - Why Using a 4% Withdrawal Assumption is an Oversimplification
• 26:01 - Understanding the Success Chart Percentiles
• 28:55 - The Difference Between Historical Stress Testing and a Monte Carlo
• 34:53 - Optimizing Dave and Bonnie’s Plan
• 37:23 - Modeling Spending Reductions VS Working Longer
• 41:30 - How to Create Guardrails in a Retirement Plan
• 46:24 - How to “Die with Zero” or “Bounce Your Final Cheque” in your Retirement Plan
• 54:32 - How to Update Your Plan Every Year

Disclaimer: This video is for educational purposes only and does not constitute investment advice or financial advice. All information provided is for illustrative purposes only and you should not rely on such information as the primary basis of your investment, financial, or tax planning decisions. Every effort has been made to ensure the accuracy of its contents. No representations, warranties or guarantees are made as to the accuracy of any estimates or calculations provided. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or recommendation, to buy or sell any financial product or securities. Before making any financial decision, you should review your situation with a financial planner