Podcasts Business Retirement Starts Today Can I Go Fishing for the Next 25 Years and Forget About Work?, Ep #203

Can I Go Fishing for the Next 25 Years and Forget About Work?, Ep #203

Published: Aug. 2, 2021, 8 a.m.

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How\\u2019s this for a headline?\\xa0I\\u2019m 62, unemployed, living off my savings, and waiting on Social Security \\u2014 \\u2018Can I go fishing for the next 25 years and forget about work?\\xa0It naturally caught my eye since there was fishing in the title!

Today we\\u2019ll check out this\\xa0MarketWatch article\\xa0and answer the headline\\u2019s question as well as explore the additional recommendations the article mentions on ways to make retirement savings last.

In the listener questions segment, I\\u2019ll answer a complex question about borrowing against your home for a gift for a child. Once you\\u2019re done listening please head on over to our\\xa0annual listener survey\\xa0to make sure you voice your opinions on the trajectory of the show.\\xa0

Outline of This Episode

  • [1:22] Can I go fishing for the next 25 years?
  • [4:58] Financial advisors weigh in on this question
  • [14:20] Should I take out $150,000 of my IRA to help my family buy a house?
  • [19:35] Make your voice heard--go check out our\\xa0listener survey!

Is it time to forget work and go fishing?

A recent Market Watch article caught my eye since it had fishing in the headline. The article opens with a question from a reader about his decision to quit his job early and go fishing for the rest of his life. The recent retiree did a great job saving for retirement and the MarketWatch author and I agree--he is absolutely ready to go fishing for the rest of his life.

I enjoyed reading this article since it included other experts\\u2019 responses, so I thought I would dig in and explore them a bit further and add my own 2 cents.\\xa0

The dangers of leaving \\u2018moldy money\\u2019 lying around

One commenter pointed out that the writer had a substantial amount of money in a savings account. He warned of the dangers of inflation by leaving that money in a low-yielding savings account.\\xa0

I agree with these concerns. Unless there is a specific reason, you need to be wary of leaving \\u2018moldy money\\u2019 lying around in low-yielding accounts. This money will end up losing purchasing power over time due to inflation.\\xa0

If you do have a substantial amount of money that isn\\u2019t invested consider converting a portion of that savings into a Roth IRA. Listen in to hear how I disagree with one advisor\\u2019s approach to investing for retirement.\\xa0

Why the bucket approach works

Another advisor suggested the bucket approach for asset allocation. This approach requires you to divide your assets into categories based on your withdrawal timeline.\\xa0

The super-conservative category is the first bucket you\\u2019ll dip into. The less conservative bucket has a longer time horizon, and the aggressive bucket won\\u2019t be touched for a long time.\\xa0

The bucket approach is a great idea and allows you to visualize your near-term assets and distinguish them from your longer, more volatile investments.\\xa0

Recognizing the difference between the boring short-term assets from the more exciting long-term assets will help you keep your sanity when the market starts misbehaving.\\xa0

To delay Social Security or not

The next area that the article discusses is Social Security. The letter writer plans to wait until full retirement age in order to receive 100% of his Social Security benefit, but there is the possibility of delaying even longer until the age of 70.\\xa0

Generally, my suggestion is to wait until age 70 to receive the maximum benefit, however, in this case, I don\\u2019t think it is as important. Listen in to hear why.\\xa0

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Resources & People Mentioned

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