Episode 175 - Can You Spend More Than 4% of Your Portfolio in your 60s and 70s? Morningstar’s David Blanchett Speaks Out

In this episode of The Lange Money Hour: Where Smart Money Talks, we welcome to the show Morningstar's David Blanchett. David is head of retirement research at Morningstar Investment Management, LLC, and in that role, he works to enhance the group’s consulting and investment services and conducts research primarily in the areas of financial planning, tax planning, annuities and retirement. In 2014, Investment News included David in their inaugural “Forty Under Forty” list as a visionary for the financial-planning industry, and in 2014, Money magazine called him one of the brightest minds in retirement planning. He’s a retire mentor for Market Watch and an expert retirement panelist for the The Wall Street Journal. TOPICS COVERED: 1. Guest Introduction: David Blanchett of Morningstar Investment Management 2. Should You Spend More Early in Retirement While You’re Relatively Healthy? 3. The Three Buckets: Needs, Wants and Wishes 4. Key Factors: How Long Will You Live, What’s the Return Rate, How Much Will You Spend? 5. David Blanchett’s 25-Times Rule for Sufficient Savings and Accounting for Inflation 6. Managing Your Portfolio with Flexibility, As If It Were an Endowment 7. Think in Terms of ‘Risk Preference’ Rather Than ‘Risk Tolerance’ 8. Your Paid-Off Home Is a Powerful Asset for a Comfortable Retirement 9. Comprehensive Planning and the Idea That ‘No Portfolio Is an Island’ 10. Beyond Alpha and Beta: The Gamma of Holistic Financial Planning 11. David Blanchett’s Retirement Rule of Thumb: One Size Does Not Fit All 12. Bucket Analogy Helps Clients Better Understand How Portfolio Works for Them 13. One Overall Goal, But Different Investment Strategies to Get There 14. David Blanchett’s Best Advice: You Only Retire Once, Don’t Screw It Up