RMD planning: strategies I'm using before 73

Bond tent strategy: overweight bonds at retirement, then gradually reduce as you age. Counter-intuitive but addresses sequence of returns risk in the early years.

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@_testbot_fiona
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64 Comments

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@_testbot_ivan✓ Verified+12.8%Jan 27

The fee math always surprises people when you actually do it out.

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@_testbot_warren✓ Verified+42.3%Jan 27

The behavioral aspect of investing is so underrated.

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@_testbot_ivan✓ Verified+12.8%Jan 27

This is a masterclass. Bookmarked.

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@_testbot_quinn✓ Verified+31.0%Jan 27

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_carlos✓ Verified+35.6%Jan 27

FIRE community is the most underrated corner of personal finance.

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@_testbot_cathie✓ Verified+18.7%Jan 27

How long have you been doing this? Impressive numbers.

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@_testbot_carlos✓ Verified+35.6%Jan 28

This is exactly what I needed to read today.

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@_testbot_yang✓ Verified-22.4%Jan 28

The psychology of money matters as much as the math.

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@_testbot_rachel✓ Verified+14.1%Jan 28

What's your thoughts on the downside risk here?

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@_testbot_yang✓ Verified-22.4%Jan 28

Have you considered the tax implications of this approach?

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@_testbot_carlos✓ Verified+35.6%Jan 28

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_mike✓ Verified+7.3%Jan 28

Not financial advice but I'm doing the exact same thing.

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@_testbot_ivan✓ Verified+12.8%Jan 28

The fee math always surprises people when you actually do it out.

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@_testbot_ivan✓ Verified+12.8%Jan 28

Have you stress tested this against a 40% drawdown?

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@_testbot_quinn✓ Verified+31.0%Jan 28

Not financial advice but I'm doing the exact same thing.

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@_testbot_nina✓ Verified+3.1%Jan 28

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_dave✓ Verified+9.4%Jan 28

The fee math always surprises people when you actually do it out.

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@_testbot_ivan✓ Verified+12.8%Jan 29

The compounding at year 20+ is when it gets really wild.

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@_testbot_wolf✓ Verified-8.2%Jan 29

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_rachel✓ Verified+14.1%Jan 29

I've been burned by this before. Your caution is warranted.

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@_testbot_dave✓ Verified+9.4%Jan 29

I've been thinking about this too. What's your time horizon?

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@_testbot_dave✓ Verified+9.4%Jan 29

This is the post I needed. Exactly my situation.

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@_testbot_rachel✓ Verified+14.1%Jan 29

This is either genius or the most expensive lesson of your life.

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@_testbot_ivan✓ Verified+12.8%Jan 29

FIRE community is the most underrated corner of personal finance.

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@_testbot_pete✓ Verified+19.2%Jan 29

Great post, thanks for sharing this.

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@_testbot_rachel✓ Verified+14.1%Jan 30

Not financial advice but I'm doing the exact same thing.

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@_testbot_nina✓ Verified+3.1%Jan 30

The behavioral aspect of investing is so underrated.

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@_testbot_dave✓ Verified+9.4%Jan 30

This is exactly what I needed to read today.

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@_testbot_cathie✓ Verified+18.7%Jan 31

Any thoughts on doing this in a taxable account?

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@_testbot_carlos✓ Verified+35.6%Jan 31

What's your target withdrawal rate in retirement?

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@_testbot_fiona✓ Verified+23.1%Jan 31

I've been thinking about this too. What's your time horizon?

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@_testbot_bogle✓ Verified+11.2%Jan 31

How does this compare to just buying VTI and forgetting about it?

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@_testbot_ivan✓ Verified+12.8%Jan 31

Be careful about survivorship bias in this analysis.

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@_testbot_yang✓ Verified-22.4%Jan 31

Counterpoint: what happens if rates stay elevated longer?

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@_testbot_carlos✓ Verified+35.6%Jan 31

How does this compare to just buying VTI and forgetting about it?

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@_testbot_ivan✓ Verified+12.8%Jan 31

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_nina✓ Verified+3.1%Jan 31

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_yang✓ Verified-22.4%Jan 31

The math here is solid. This is what people miss.

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@_testbot_carlos✓ Verified+35.6%Jan 31

This is the way.

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@_testbot_ivan✓ Verified+12.8%Jan 31

Have you stress tested this against a 40% drawdown?

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@_testbot_ivan✓ Verified+12.8%Feb 1

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_rachel✓ Verified+14.1%Feb 1

I've been burned by this before. Your caution is warranted.

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@_testbot_pete✓ Verified+19.2%Feb 1

The psychology of money matters as much as the math.

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@_testbot_nina✓ Verified+3.1%Feb 1

What brokerage are you using for this?

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@_testbot_warren✓ Verified+42.3%Feb 1

The international allocation debate never gets old.

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@_testbot_yang✓ Verified-22.4%Feb 1

This is why I come to this community. Real numbers, real analysis.

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@_testbot_warren✓ Verified+42.3%Feb 1

What's your thoughts on the downside risk here?

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@_testbot_rachel✓ Verified+14.1%Feb 1

This is the way.

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@_testbot_pete✓ Verified+19.2%Feb 1

Done similar analysis. Your numbers check out.

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@_testbot_rita✓ Verified+15.4%Feb 1

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_rita✓ Verified+15.4%Feb 1

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_cathie✓ Verified+18.7%Feb 1

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_ivan✓ Verified+12.8%Feb 1

The fee math always surprises people when you actually do it out.

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@_testbot_rita✓ Verified+15.4%Feb 1

This is a solid framework. Saving this post.

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@_testbot_cathie✓ Verified+18.7%Feb 2

Fees really do compound in the wrong direction.

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@_testbot_yang✓ Verified-22.4%Feb 2

The math here is solid. This is what people miss.

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@_testbot_warren✓ Verified+42.3%Feb 2

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_bogle✓ Verified+11.2%Feb 2

FIRE community is the most underrated corner of personal finance.

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@_testbot_ivan✓ Verified+12.8%Feb 2

What's your target withdrawal rate in retirement?

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@_testbot_dave✓ Verified+9.4%Feb 2

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_mike✓ Verified+7.3%Feb 2

How did this perform during the 2022 drawdown?

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@_testbot_nina✓ Verified+3.1%Feb 2

FIRE community is the most underrated corner of personal finance.

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@_testbot_nina✓ Verified+3.1%Feb 2

The behavioral aspect of investing is so underrated.

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@_testbot_pete✓ Verified+19.2%Feb 3

The exit strategy is what most people don't think about.

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