Will the Stock Market Crash Ruin Your Retirement Planning?

Stock market crashes aren't good news for anyone. For retirees though, this dip in prices can feel like a death wish, as active income is no longer an option. Have the hopes and dreams of financial flexibility gone out the window? Or is a market crash like we're experiencing today just a small blip on a retiree's radar? Pairing this with inflation, how will someone who has just retired make it?

We’ve got Michael Kitces, retirement planning expert and financial genius with enough acronyms coming after his name to spell out the alphabet, on the show to answer whether or not retirees are in trouble. Michael has advised his clients for decades on the right way to save and invest for retirement. He’s been a proponent of the 4% rule and was bold enough to hold his claim even during the flash crash of 2020. But, with such high inflation and stark drops in equity values, does he still agree with his past predictions?

Michael takes us on a trip down memory lane, visiting some of the worst financial crises in American history, showing how they compare to today. He also proposes that holding large amounts of cash, even during high inflationary times, isn’t the worst move to make, and whether or not he’s still investing as the market finds its bottom. If you’re worried about retiring during times like today, this is the man to listen to!

00:00 Intro
02:57 Is the 4% Rule Broken?
08:06 The 4% Rule Explained
17:06 What's a Safe Withdrawal Rate for 2023?
19:34 Bad Market? Retire Rich!
27:29 Are 2020 Retirees in Trouble?
32:52 Tips for Retirees
39:28 Is Selling a Smart Move?
48:01 How is Michael Investing?
53:50 Is Keeping Cash a Mistake?
59:57 Connect with Michael!
01:00:56 Takeaways from Our Talk

Show Notes at:
https://www.biggerpockets.com/blog/money-351?utm_source=youtube&utm_medium=description&utm_campaign=none
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Hear Our Past Interviews with Michael and Bill Bengen (4% Rule Creator):
Michael: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-120early-retirementasset-allocation-safe-withdrawal-rates-michael-kitces?utm_source=youtube&utm_medium=description&utm_campaign=none
Bill Bengen: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-153-bill-bengen?utm_source=youtube&utm_medium=description&utm_campaign=none
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Articles Mentioned in Todays Show:
How Has The 4% Rule Held Up Since The Tech Bubble And The 2008 Financial Crisis?:
https://www.kitces.com/blog/how-has-the-4-rule-held-up-since-the-tech-bubble-and-the-2008-financial-crisis/
Original 4% Rule Articles: https://www.retailinvestor.org/pdf/Bengen1.pdf
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Connect with Michael:
https://www.kitces.com/
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Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 351

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