Retire With Style

In this episode of Retire with Style, Wade Pfau and Alex Murguia explore how Treasury Inflation Protected Securities, or TIPS, fit into a retirement income plan. They discuss when it may make sense to build a TIPS ladder, the challenge of predicting interest rates, and how TIPS compare with equities as tools for managing inflation risk. The conversation also addresses strategies for creating inflation-adjusted income, the role TIPS can play alongside Social Security, and how a TIPS ladder can support a Social Security delay bridge. Listen now to learn more.  Takeaways TIPS are designed to protect against inflation in retirement. Timing is crucial when building a TIPS ladder for retirement income. Interest rates are unpredictable, making TIPS a safer choice now. Equities can provide growth but lack the guaranteed inflation protection of TIPS. Delaying Social Security can enhance retirement income security. Bond funds may not be the best option for retirement income planning. TIPS can help mitigate sequence of returns risk in retirement portfolios. A blend of TIPS and equities can optimize retirement income strategies. Interest rate risk is a significant factor when considering long-term bonds. Effective financial planning involves understanding the role of TIPS in a diversified portfolio. Chapters 00:00 Introduction to TIPS and Retirement Planning 02:44 Building a TIPS Ladder: Timing and Strategy 06:06 Understanding Interest Rates and TIPS 08:53 TIPS vs. Equities: Inflation Protection and Growth 11:46 Creating Inflation-Adjusted Income Streams 15:05 The Role of TIPS in Retirement Income 17:55 Bond Funds vs. TIPS: A Comparative Analysis 21:13 Social Security Delay Bridge and TIPS 24:00 Current TIPS Market and Yield Considerations 27:00 Final Thoughts and Holiday Wishes Links Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 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”

In this episode of Retire With Style, Alex Murguia and Wade Pfau explore core themes in retirement planning, including the 4 percent rule, sequence of returns risk, and how to balance discretionary and essential spending. They discuss how these factors shape retirement income strategies, the role of reliable income sources, and when a rising equity glide path can be beneficial. The conversation highlights why retirees may need a more flexible and adaptive approach rather than relying on traditional rules of thumb. Takeaways The 4% rule is not a constant and can vary based on market conditions. Sequence of return risk is a real concern but may be overstated for average investors. Discretionary spending in retirement should be carefully planned to avoid future regrets. Variable spending strategies can help manage sequence risk effectively. Reliable income sources are crucial for covering essential expenses in retirement. Investors should consider the implications of longevity risk on their withdrawal strategies. The rising equity glide path can be a useful strategy for managing investment risk in retirement. Dividend income should not be the sole focus for retirement income planning. The retirement planning community often relies on outdated paradigms that may not serve current needs. Education on retirement income strategies should start early, even in high school. Chapters 00:00 Introduction to Retirement Planning Themes 06:11 Understanding the 4% Rule and Withdrawal Strategies 12:03 Exploring Sequence of Return Risk 17:59 Discretionary vs. Essential Spending in Retirement 24:13 The Role of Dividend Income in Retirement 30:06 Rising Equity Glide Path Strategies 36:04 The Shift from Traditional Drawdown Paradigms Links  Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 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

In this episode of Retire With Style, Alex and Wade answer listener questions on key retirement planning topics. They discuss penalty-free withdrawals from 401(k)s, the role of Roth conversions for both younger savers and retirees, and the distinctions between qualified and non-qualified accounts. They also examine how long-term demographic trends may influence market expectations and investment strategies in the decades ahead. Takeaways The rule of 55 allows penalty-free withdrawals from 401(k) plans if employment is terminated after age 55. Roth conversions should be considered based on current and future tax rates. It’s important to fill your standard deduction to minimize tax liabilities. The after-tax safe withdrawal rate differs between account types due to ongoing taxes. Demographic trends are known and factored into market pricing over time. Diversification across asset classes remains a key strategy for long-term investment success. Understanding the implications of RMDs is crucial for tax planning in retirement. Financial planning software can help manage taxes and withdrawals effectively. Chapters 00:00 Introduction and Overview 03:01 Understanding the Rule of 55 10:56 Roth Conversions: Strategies and Timing 21:34 Tax Implications of Withdrawals 25:26 Demographic Trends and Market Predictions Links Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 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”

In this episode of Retire With Style, Wade Pfau and Alex Murguia talk with Beth Pinsker, author of My Mother’s Money, about the practical and emotional realities of financial caregiving and estate settlement. They discuss why clear documentation matters, how probate works, and where family disputes over inheritance often begin. The conversation also covers the roles of wills, trusts, and beneficiary designations, along with the emotional weight that comes with managing a loved one’s affairs. Beth shares personal insights that highlight the value of proactive planning and open communication to help families avoid conflict and ensure a smoother transition of assets. Takeaways 30% of people have any sort of documents in place for estate planning. Family disputes often arise over inheritance and asset distribution. Blended families require careful planning to avoid conflicts. Trusts can provide better protection for all parties involved. Beneficiary designations are crucial to avoid probate complications. Wills serve as power of attorney after death, but trusts offer more control. Proper estate planning can ease the emotional burden on families. Communication about inheritance wishes can prevent family discord. Digital assets should also be included in estate planning. Emotional challenges in settling property can be significant. Chapters 00:00 Introduction to Estate Planning and Legacy 01:53 Understanding Estate Planning and Its Importance 06:35 Family Disputes and the Role of Executors 08:58 Common Sources of Family Disagreements 13:39 Wills vs. Trusts: Key Differences Explained 20:33 The Importance of Beneficiary Designations 27:52 Navigating Property Settlements and Emotional Challenges 34:16 Final Thoughts on Financial Caregiving and Legacy Planning Links Find links to order Beth Pinkser’s book, “My Mother’s Money,” at www.bethpinsker.com Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 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

In this episode of Retire With Style, Wade and Alex talk with Beth Pinsker, author of My Mother’s Money, about the realities of financial caregiving. Beth shares her experience managing her mother’s finances during a health crisis, underscoring the value of preparation and clear legal documentation. The discussion covers the importance of establishing power of attorney, the practical challenges of budgeting for someone else, and the emotional strain that arises when court involvement becomes necessary. The episode offers listeners a straightforward look at why financial caregiving matters and what steps can help families prepare before a crisis hits. Takeaways Beth’s mother was a competent individual who required financial caregiving due to health issues. Preparation is crucial; having legal documents in place can save time and money later. Power of attorney is essential for anyone over 18 to ensure decisions can be made on their behalf. Financial institutions have varying requirements for accepting power of attorney documents. Navigating a loved one’s finances can be complicated without access to their accounts. Budgeting for someone else requires understanding their entire financial picture, including bills and accounts. The court experience for those without power of attorney can be lengthy and emotionally taxing. Many people underestimate the importance of estate planning, regardless of their financial status. It’s important to normalize discussions about power of attorney and healthcare proxies among families. Planning ahead can prevent significant stress and financial burden during a crisis. Chapters 00:00 Introduction to Financial Caregiving 01:45 The Journey Begins: Beth’s Personal Experience 04:11 Preparing for the Inevitable: Legal and Financial Steps 10:21 The Importance of Power of Attorney 16:20 Navigating Financial Institutions 25:32 Reverse Engineering the Budget 30:34 The Court Experience and Its Implications Links Find links to order Beth Pinkser’s book, ”My Mother’s Money,” at www.bethpinsker.com Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 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”