PRISM: Prioritizing Your Goals

Reflect 

We want our members to think about their short and long-term risk, especially in regards to withdrawals. Acknowledging this will help you fully understand how it will affect you down the road. Assessing both short and long-term risk is crucial to avoiding ill-time withdrawals as well as overall allocation.

Engage 

In the comments, we encourage our members to share their thoughts on sequence risk in relation to retirement withdrawals: 

1. If you're currently in retirement, what has been your experience taking withdrawals and how has it affected your other investment goals? Has it been positive or negative? 
2. If you're not yet in retirement, what do you think will be your withdrawal strategy? Do you have additional income you can rely on if you need to fund your investment goals, or will your portfolio be the only one? 

Remember to watch the Lesson 3 video, fill out the attached worksheet, and participate in the below activity. 

Example: 

1. I have not thought about my withdrawal strategy and am learning how serious sequence risk truly is. I will have to rely on my portfolio and savings to fund my goals, especially to fund retirement as well as my parents' long-term care.

I have had to make one minimum withdrawal (less than 1%) since my retirement due to the fact that my wife is still working and I have a pension.  She will retire in 2024 at which point our retirement really begins. 

Our withdrawal strategy will be a 4%-5% withdrawal rate for the first year since we will payoff the remainder of our mortgage that year.

The next 6 years will be a withdrawal rate of 2% - 3% until assuming I wait to age 70 to take social security. 

At that point we may not have to take any withdrawals except minimum distributions which will be reinvested.  I hope to have that plan in place sooner rather than later.

We do want to move into an independent living facility if and when we get that far.   Our home will provide most of the entry cost or monthly cost depending on whether we rent it our or just sell it. 

We have a nice little bundle of Long Term Care insurance that would help with that cost if necessary. 

All of this of course depends on the real rate of return of our portfolio.  I am using a 5% portfolio rate of return over the lifetime of the plan and a varying interest rate of 5% for two years then 2.75% for the rest of the plan.  I'll be revisiting these assumptions and plan along the way.

I use a life expectancy of 95 years old for the length of our goal or plan.

Reflect 

We want our members to think about their short and long-term risk, especially in regards to withdrawals. Acknowledging this will help you fully understand how it will affect you down the road. Assessing both short and long-term risk is crucial to avoiding ill-time withdrawals as well as overall allocation.

Engage 

In the comments, we encourage our members to share their thoughts on sequence risk in relation to retirement withdrawals: 

1. If you're currently in retirement, what has been your experience taking withdrawals and how has it affected your other investment goals? Has it been positive or negative? 
2. If you're not yet in retirement, what do you think will be your withdrawal strategy? Do you have additional income you can rely on if you need to fund your investment goals, or will your portfolio be the only one? 

Remember to watch the Lesson 3 video, fill out the attached worksheet, and participate in the below activity. 

Example: 

1. I have not thought about my withdrawal strategy and am learning how serious sequence risk truly is. I will have to rely on my portfolio and savings to fund my goals, especially to fund retirement as well as my parents' long-term care.

Reflect 

We want our members to think about their short and long-term risk, especially in regards to withdrawals. Acknowledging this will help you fully understand how it will affect you down the road. Assessing both short and long-term risk is crucial to avoiding ill-time withdrawals as well as overall allocation.

Engage 

In the comments, we encourage our members to share their thoughts on sequence risk in relation to retirement withdrawals: 

1. If you're currently in retirement, what has been your experience taking withdrawals and how has it affected your other investment goals? Has it been positive or negative? 
2. If you're not yet in retirement, what do you think will be your withdrawal strategy? Do you have additional income you can rely on if you need to fund your investment goals, or will your portfolio be the only one? 

Remember to watch the Lesson 3 video, fill out the attached worksheet, and participate in the below activity. 

Example: 

1. I have not thought about my withdrawal strategy and am learning how serious sequence risk truly is. I will have to rely on my portfolio and savings to fund my goals, especially to fund retirement as well as my parents' long-term care.

Reflect 

We want our members to think about their short and long-term risk, especially in regards to withdrawals. Acknowledging this will help you fully understand how it will affect you down the road. Assessing both short and long-term risk is crucial to avoiding ill-time withdrawals as well as overall allocation.

Engage 

In the comments, we encourage our members to share their thoughts on sequence risk in relation to retirement withdrawals: 

1. If you're currently in retirement, what has been your experience taking withdrawals and how has it affected your other investment goals? Has it been positive or negative? 
2. If you're not yet in retirement, what do you think will be your withdrawal strategy? Do you have additional income you can rely on if you need to fund your investment goals, or will your portfolio be the only one? 

Remember to watch the Lesson 3 video, fill out the attached worksheet, and participate in the below activity. 

Example: 

1. I have not thought about my withdrawal strategy and am learning how serious sequence risk truly is. I will have to rely on my portfolio and savings to fund my goals, especially to fund retirement as well as my parents' long-term care.