Episode Guide

Episode Summary:

Understanding drawdown strategies is crucial for financial independence, especially as many individuals approach or enter retirement. This episode features insights from Karsten from Early Retirement Now and Fritz from The Retirement Manifesto, both of whom share their unique approaches to withdrawing funds after retiring in June 2018. Karsten emphasizes the importance of asset location and has maintained cash flow without selling assets, while Fritz outlines his bucket strategy, which includes planning two years in advance and employing a system to create a 'paycheck' from savings. Both methods aim to minimize anxiety during market downturns and ensure a steady income during retirement. With their differing perspectives, they also highlight the significance of tax implications and dynamic spending adjustments in maintaining financial comfort throughout retirement.

Episode Timestamps

In this episode: the "average" withdrawal, Karsten's strategy, Fritz's strategy, fixed withdrawal rates, the bucket strategy, and refilling.

Preparing for retirement can look different for all on the journey to FI. All of our goals differ, but we are still in the mindset of positioning ourselves for the coming years. This week we are having a face-off between returning guests Karsten and Fritz, as they discuss their own receptive drawdown strategies, their advantages, and how you can best prepare yourself mentally and financially for your retirement. While a large part of preparing for retirement means saving, that does not mean you should be afraid to spend. Even in retirement, there are strategies that can allow you to not only spend comfortably within your means, but also spend confidently!

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Fritz & Karsten:

Fritz's Website: theretirementmanifesto.com
Karsten's Website: earlyretirementnow.com

Timestamps:

1:35 - Introcution
2:09 - Karsten's Strategy
6:05 - Fritz's Strategy
13:28 - Fixed Withdrawal Rates
18:08 - Your Retirement Spending Mentality
23:01 - The Source Of The Bucket Strategy Debate
30:46 - Refilling The Buckets
40:40 - The Cheap Gimmick
45:13 - The Importance Of Rebalancing
51:03 - The Key Takeaways/The "Average" Withdrawal
59:06 - Conclusion

Resources Mentioned In Today’s Episode:

The wave of change

08/31/2018

Steve... Can

I listen to many podcasts financial and otherwise. Given the abundance of Podcasts it is critical to be selective on which ones to dedicate your time to. This is one of those podcast where one can benefit greatly with their financial information and general life hacks. As someone who is 450 thousand in debt I realize I have a long road to FI but these gentlemen keep me inspired. Keep up the good work. Thank you.
Life Changing Information

04/08/2019

bfalco126

The thing that I love most about this podcast is not necessarily the information that they are providing. The information that they are providing can be found in numerous other locations around the Internet but it is the way that they presented it and the community that they have built that have made me a believer in Brad and Jonathan. I have recommended this podcast as well as their advice to all of my close family and friends and I am very appreciative to have found ChooseFI.

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