On today’s episode of the Wiser Roundtable Podcast, the team talks about retirement planning and what to expect from your portfolio.

Listen on Apple Podcasts or watch on YouTube:

SUMMARY:

Managing return expectations throughout retirement is essential to understanding your financial position. We believe the rate of return assumption should be somewhere between 5 and 7%. During your earning years, where your portfolio can withstand more volatility, a 7% return is a realistic expectation. Subsequently, your return expectations throughout retirement should be on the lower end, around 5%.

We consider this a safe projection because most retirees are not able to withstand the extreme volatility that comes along with a high risk/high return portfolio that is comprised entirely of stocks. History has proven this estimation to be true, with returns for the S&P 500 staying between 5-8% for the last 30 years.

Black Swan Events

Major events like the housing market crash of 2008 and more recently, the global pandemic, have impacted return expectations for investors. Life is not linear, and neither are portfolios. Throughout the lifetime of any retiree, they should expect to see pullbacks in the market, so setting realistic expectations and planning for unforeseen events will provide security and a sense of financial freedom.

Retirement Planning Resources

While there are a vast number of tools and internet resources dedicated to retirement planning, these tools often fail to account for all the variables in play. Seeking out the wisdom and guidance of a financial advisor helps eliminate the likelihood of unrealistic forecasting and provides you with a roadmap for withdrawal strategies. Knowing when and from where to withdraw has become increasingly complex, so managing these decisions can be overwhelming. Our purpose at Wiser Wealth Management is to help our clients achieve their financial goals by providing them with a balanced portfolio that takes all these variables into account – making life simpler.

TIMESTAMPS:

0:30 Portfolio Returns During Retirement

12:05 Black Swan Events

19:10 Retirement Planning Resources

LINKS:

Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

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Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.