Thanks for watching, here are some follow-up videos. Retirement Income Planning: Risks and Strategies kzread.info/dash/bejne/aaaLqZNwqqvAY8o.html Six Retirement Withdrawal Strategies Compared kzread.info/dash/bejne/pKuZmqWacbi0gpM.html Three-Fund Portfolio kzread.info/dash/bejne/hGxlvI-oksioY9Y.html Why I Invest in Index Funds kzread.info/dash/bejne/Y5erwaOInJWrpMY.html

I love your teaching.

@nickdoyle-achievefinancial2464

8 ай бұрын

Thank you, I'm glad you find it useful! :)

Fees are usually the crux of all these plans. You end up funding your managers retirement with the growth. Paired with risk, its just another scheme. 100% bonds for retirement paired with whole life annuities.

Your videos are high quality content, thanks!

@nickdoyle-achievefinancial2464

6 ай бұрын

Glad you find them useful, thank you!

I like William Bengins strategy. I think it's important to still be investing heavily in growth during retirement. Inflation is a bigger risk than the stock market. Too much money in bonds is more risky in my opinion.

@nickdoyle-achievefinancial2464

6 ай бұрын

I agree. I think people underestimate the risk of bonds for longevity and inflation.

Inflation was very high in the 1970s so I avoided bonds. After 40 years of being almost 100% stocks I am now retired. I am 2% bonds. My portfolio has fallen 50% twice, you get used to volatility.

@nickdoyle-achievefinancial2464

Жыл бұрын

That's a wild ride, but glad it's working for you :). We were comfortable with the drop last year, but haven't had a 50% drop yet!

Thanks Nick. I am getting so much out of your videos. Already set up with Fidelity and about to open the bond fund FDLXX. I'm in an income tax state.

@nickdoyle-achievefinancial2464

10 ай бұрын

Glad you are getting value, best wishes!

Solid video by Nick. Risk tolerance is SOOO important for people over the age of 55 if they plan on retiring fairly soon. I'm about 65% cash right now and I don't care if I miss out on another 20% market gain (if the market goes up 20% more). I will take my 5% return on my cash position and shut up. I can deal with missing out, but I can't deal with a 40% downturn. Now...if the market goes down 30%, I will move some cash over to stocks and take the risk. But right now, we are sitting about 8% from making new highs and tons of credit card debt and people not being able to afford their monthly rent. Nope....I'm not going aggressive right now. If you're under 50, go for it. You have plenty of time for market recovery.

@nickdoyle-achievefinancial2464

Жыл бұрын

Thanks! It’s good that you recognize what strategy is best for you. There are definitely a lot of risks in the market, which you don’t need to be exposed to. Bond and cash yields are also pretty good right now.

@BillyO8828

Жыл бұрын

@@nickdoyle-achievefinancial2464 - Actually, thank YOU! You video confirmed to me that I pretty close to being on the right track.

I feel like anything that isn’t stocks I would want to put it in cash. My buddy’s kids 529 NH 2024 fidelity funds was a target date fund . It lost 1/2 the acct when it was mostly bonds in the last 2 years due to the bonds losing 11% . Idk I still see bonds as risky . Just not AS risky as stocks. Love the channel by the way. Just found you recently . Great content

@nickdoyle-achievefinancial2464

Жыл бұрын

Thanks James! 2022 was one of the worst years for bonds :(. I'm not sure how it would have lost 1/2 the account with bonds going down 11% and stocks dipping ~25-30%.

@Anthony-zw1qb

Жыл бұрын

@@nickdoyle-achievefinancial2464 I was confused on that as well . Until I saw his act balance and I was shocked at the amount of losses it had.

Nick, this is excellent research and very informative. I'm in 3 fund portfolio- FXAIX 60%, FSGGX 20% and FXNAX 20%. Age 54. I was starting to 2nd guess my outlay on the FSGGX...

@nickdoyle-achievefinancial2464

Жыл бұрын

Thanks! Nice portfolio :) Why are you second guessing FSGGX?

@adegiwa9381

Жыл бұрын

@@nickdoyle-achievefinancial2464 When I look at the the Total Gain/losses column it’s about -$16, 793.99 it’s painful to look at.

@nickdoyle-achievefinancial2464

Жыл бұрын

You must have bought it in 2021? Some people don't have the conviction for ex-US, but my opinion is the diversification is beneficial long term.

@adegiwa9381

Жыл бұрын

@@nickdoyle-achievefinancial2464 Yes, I converted from a Fidelity 2040 FSNVX with an expense ratio of 0.65 on 6/24/2021.

@adegiwa9381

Жыл бұрын

How did you figure that out ?

For someone who has already "won the game" in reaching retirement, what are your thoughts on going with 60/40 stock/bond allocation and a rising equity glide-path (heck, maybe significantly increase stock exposure after a significant downturn and then just set it and forget it at 90/10)?

@nickdoyle-achievefinancial2464

Жыл бұрын

That's around the allocation I think I would be near retirement (and would probably also have a rising equity glide path after the first few years), so seems reasonable to me! As long as you are comfortable with the increased volatility, it would generally be more rewarding over 15+ years. That could make a big difference if you are looking to leave it to family, charity, etc.

I'll take All weather portfolio by Ray dalio in the future, but my worry is the interest of federal fund is going to be higher

@nickdoyle-achievefinancial2464

2 ай бұрын

It doesn't look like FF rate has much impact on all-weather since it's weighted to long duration. I'm not a big fan of commodities, gold, or high % of long bonds in a portfolio, but to each their own :)

Another great video. So few podcasts and financial services are geared towards control or decrease cost of living. As it requires less funding and transactions, there are no incentives to talk about. Live below your means in retirement means more simple, less focused on spending, maybe move to interesting international places where social security is more than enough. US does not rank high in healthcare, education and crime. Of course fund costs and taxes are just as important

@nickdoyle-achievefinancial2464

Жыл бұрын

Good points. There are numerous options in the world where you can often get more value. Are are they any places you are considering?

@BB-cs3kk

Жыл бұрын

So many good options, issue is to convince spouse. I am also trying to get out of Florida during hurricane season. Several interesting countries offer 6 months visas, although not much cheaper: New Zealand, Australia, Canada, UK. Cheaper but outstanding destinations Portugal, Spain, Greece, Baltic countries (Croatia, Slovenia). If interested in Asia Malaysia (far and humid) followed by Thailand. South America has interesting countries such as Costa Rica, Panama, Uruguay. Lots of great choices, but more than likely will look into developed countries mostly for safety and healthcare. My choice would be 1-2 years per country and keep our house in South Florida 😊

@nickdoyle-achievefinancial2464

Жыл бұрын

@@BB-cs3kk 1-2 years per country sounds pretty fun! It would be difficult to choose one. I hear you on the safety & healthcare. I hear you on the safety and healthcare! I don't know if you can get citizenship through ancestry. I applied for Hungarian citizenship through ancestry & it has been a rewarding process!

Hi Nick, Would you have any thoughts on detailed asset allocation tools for funds and ETFs ( based on traditional 9 categories for stocks and bonds). I find significant differences in between portfolio visualizer and Morningstar x-ray tools. Understanding that having only total stock funds avoids this problem. Any thoughts or suggestions would be appreciated. Thanks.

@nickdoyle-achievefinancial2464

5 ай бұрын

Hi, I don't know if I understand entirely. Do you mean you have ~9 funds and want to calculate the overall allocation / exposures? I've used x-ray for this in the past, but am surprised to hear about the difference to portfolio visualizer. Can you share an example allocation where they are different?

Great research paper from David Blanchette and Michael Finley regarding stocks allocation based on guaranteed income: Annuitized Income and Optimal Equity Allocation (2018)

@nickdoyle-achievefinancial2464

Жыл бұрын

Thanks for the recommendation, I'll check it out!

@catomoose

Жыл бұрын

thank you @BB-, i asked bing for a summary of the paper and thought i'd share the bottom line results: For retirees with low guaranteed income to need ratio (20%), the optimal equity allocation ranges from 30% to 40%, depending on their preference for income stability and bequests. For retirees with moderate guaranteed income to need ratio (40%), the optimal equity allocation ranges from 40% to 50%, depending on their preference for income stability and bequests. For retirees with high guaranteed income to need ratio (60%), the optimal equity allocation ranges from 50% to 60%, depending on their preference for income stability and bequests. For retirees with very high guaranteed income to need ratio (80%), the optimal equity allocation ranges from 60% to 70%, depending on their preference for income stability and bequests. The paper also compares the optimal equity allocation with the traditional rule of thumb of subtracting one’s age from 100 to determine the percentage of stocks in one’s portfolio. The paper finds that this rule of thumb is generally too conservative for retirees with high levels of annuitized income and too aggressive for retirees with low levels of annuitized income. The paper concludes that annuitized income should be considered as an important factor in determining the optimal asset allocation for retirees.

@nickdoyle-achievefinancial2464

Жыл бұрын

Thanks for sharing, good idea to use AI :)

@williamclotfelter8355

Жыл бұрын

​@catomoose thank you, for that summary!

I’m getting really frustrated asking this question without never getting an answer. When you talk about bonds in a portfolio what do you mean? Bond etf’s, bond mutual funds, municipal bonds, I-bonds, treasury bonds etc. All bonds with very different rates of return. Where is the bond money supposed to be invested in a stock / bond portfolio??? Thanks

@nickdoyle-achievefinancial2464

11 ай бұрын

Hi Don, this can be a tricky topic! I generally prefer intermediate-term total market bond index funds or ETFs (examples: VBTLX or BND, FXNAX, VSIGX or VGIT). I went into some details on how I compare bond funds and think about choosing them for my asset allocation here: kzread.info/dash/bejne/c6BmprGtfLaWYLQ.html. I also made a videos on i-bonds & TIPS (kzread.info/dash/bejne/aZpqo86Icr21YNY.html), T-Bills (kzread.info/dash/bejne/qomC1buhm5a_qbg.html), and have a video releasing tomorrow on muni bonds (kzread.info/dash/bejne/rIh718Shea3epNY.html). I hope this helps!

Excellent video Nick! I plan to retire in 5 years (at age 67). Any way I can download you asset allocation worksheet? Thanks!

@nickdoyle-achievefinancial2464

Жыл бұрын

Thanks! You mean the model allocation spreadsheet from this video?

@mj1961christian

Жыл бұрын

Yes. Thank you

@nickdoyle-achievefinancial2464

Жыл бұрын

@@mj1961christian Here is a link: docs.google.com/spreadsheets/d/1H1REjcXroLcHoKEoli1jHj2_MgtTKlsz9h1eQiwT63E/edit?usp=sharing

@mj1961christian

Жыл бұрын

Thank you!

I personally like the rule of 120 as I think a lot of target date funds get way too conservative too early. I think if u are in retirement an exposure to 50-60% stocks is plenty. No need to take additional risk.

@nickdoyle-achievefinancial2464

Жыл бұрын

I agree, the target date funds get quite conservative. Maybe we have above average risk tolerance? I think my wife & I would probably go for somewhere around 60-70% stocks : 30-40% bonds, when we reach retirement.

@foodguy3435

Жыл бұрын

@@nickdoyle-achievefinancial2464 yea I think I’d be like 60/40 in retirement. I’m pretty young right now so I don’t have any bond allocation yet, but will start to add them in my 40’s.

@jdevoz

Жыл бұрын

66 and retired, 65%/35% asset allocation, wife is 60, money has to last a long time.

@BillyO8828

Жыл бұрын

Foodguy - I think it really depends on how close a retired person is cutting it. If he only has, say...$300K with no pension, SS doesn't pay much and the retiree might need every penny of the $300K to make it. But if the person has $1 million, plus a pension, 60% stocks is fine.

@nickdoyle-achievefinancial2464

Жыл бұрын

@@BillyO8828 Good point, some may have a lower risk tolerance and not want to risk it!

Nick, haven’t seen anything from you for a while. Everything ok?

@nickdoyle-achievefinancial2464

8 ай бұрын

Hi Mike, thanks for checking, everything is ok! I've just been taking some time off, focusing more on rest/other hobbies, & deciding what to do next with my channel.

@mj1961christian

8 ай бұрын

Understandable