For many nearing retirement, the question looms: “Have I saved enough?” David, a 61-year-old plant biologist turned chemist, faces this challenge with $530,000 saved. While mortgage-free, David’s concerns include high property taxes and the potential for a market downturn early in retirement, known as sequence of return risk.

David plans to withdraw about 5.4% of his portfolio in his first year, slightly above the 4% rule. However, once his pension and Social Security kick in, this rate will drop to a more sustainable 1%. His current portfolio is a 70/30 split between stocks and bonds, which helps mitigate risk. A strategy that draws from bonds during market downturns can further protect his savings.

With a budget of $2,400 per month and plans to enjoy travel, David’s financial projections show that he can maintain his lifestyle and potentially have more money at 90 than he does today. Flexibility with Social Security timing allows him to adjust based on market conditions.

David’s story highlights that, with careful planning and a diversified portfolio, retiring comfortably is achievable—even amidst uncertainty.

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⏱Timestamps:⏱
0:00 - Meet David
4:11 - Biggest financial fear
7:22 - Expenses in retirement
11:17 - Income in retirement
15:16 - Cash flows
19:57 - Evaluating portfolio robustness
24:03 - Importance of diversification
27:34 - More than surviving
30:59 - Dying with a large portfolio
34:05 - Social Security strategy
37:28 - Retirement possibility verdict

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