How Investment Fees Wreck the 4% Rule of Retirement Spending
6.1 هزار بار بازدید -
4 سال پیش
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How Investment Fees Wreck the
How Investment Fees Wreck the 4% Rule of Retirement Spending📚 My book, Retire Before Mom and Dad-https://amzn.to/2MsRJ9B📊 Best investment tracking tool-https://go.robberger.com/empower/yt-
Resources in this Video
4% Rule Paper: https://www.retailinvestor.org/pdf/Be...
Vanguard Advisory Services: https://investor.vanguard.com/advice/...
PlanVision (Mark Zoril): https://planvisionmn.com/
Vanguard Digital Advisory Services: https://investor.vanguard.com/advice/...
Betterment Retirement Income: https://www.betterment.com/retirement...
Tools & Resources
📚 My Book (of course): https://amzn.to/2MsRJ9B
✅ Personal Capital: https://go.robberger.com/empower/yt-
✅ My favorite credit cards: https://www.allcards.com/go/cr-best-c...
✅ Checking accounts: https://www.allcards.com/best-checkin...
✅ Online savings accounts: https://www.allcards.com/best-online-...
✅ Free Investment Tracking Spreadsheet: https://docs.google.com/spreadsheets/...
0:00 Investment Fees & the 4% Rule
In this video we look at how investment fees affect the 4% rule.
1:10 4% Rule assumes $0 investment fees
William Bengen did not factor in fees when he published his 1994 paper that is the basis for the 4% rule.
1:50 DIY Index Fund Investors
If you invest on your own in low-cost index funds, the 4% rule still applies without modifications.
2:52 Ignoring fees with the 4% Rule
If you pay expensive advisory and mutual fund fees, however, ignoring their impact on the 4% rule could result in running out of money in retirement.
8:35 Reduce spending to account for fees
You can lower your retirement spending to account for fees, but this could be a major blow to your lifestyle.
10:36 Low cost investing help
There are several low-cost options for those who want investing help.
11:00 Vanguard Advisory Services
11:45 Flat-fee investment advisors
14:37 Digital Advisors
In today's video, we're going to be talking about the 4% rule, and specifically, how investment fees affect our application of the 4% rule in retirement. If you watch the last video, you know, I talked about investment fees during the time when we're saving for retirement and recall that even a quote unquote, small 1% fee, or even a half a percent fee, over a lifetime of investing can easily cost us hundreds of 1000s of dollars. And, believe it or not even a million dollars or more, if you didn't watch that video, I highly encourage it. This video is part of our 4% rule series. So if you haven't watched that, I highly encourage you to go back, there's only about four or five videos in the series at this point and watch them. But as you know, the 4% rule helps us estimate how much we can you know, spend in retirement, we take 4% of our portfolio in year one, and then after that, we just didn't adjust it for inflation. But that raises the question of investment fees. In this video, we're going to discuss five key things you need to understand when it comes to the 4% rule and investment fees.
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)
LET'S CONNECT
Youtube: @rob_berger
Facebook: Facebook: financialfreedomguy
Twitter: Twitter: Robert_A_Berger
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.
Resources in this Video
4% Rule Paper: https://www.retailinvestor.org/pdf/Be...
Vanguard Advisory Services: https://investor.vanguard.com/advice/...
PlanVision (Mark Zoril): https://planvisionmn.com/
Vanguard Digital Advisory Services: https://investor.vanguard.com/advice/...
Betterment Retirement Income: https://www.betterment.com/retirement...
Tools & Resources
📚 My Book (of course): https://amzn.to/2MsRJ9B
✅ Personal Capital: https://go.robberger.com/empower/yt-
✅ My favorite credit cards: https://www.allcards.com/go/cr-best-c...
✅ Checking accounts: https://www.allcards.com/best-checkin...
✅ Online savings accounts: https://www.allcards.com/best-online-...
✅ Free Investment Tracking Spreadsheet: https://docs.google.com/spreadsheets/...
0:00 Investment Fees & the 4% Rule
In this video we look at how investment fees affect the 4% rule.
1:10 4% Rule assumes $0 investment fees
William Bengen did not factor in fees when he published his 1994 paper that is the basis for the 4% rule.
1:50 DIY Index Fund Investors
If you invest on your own in low-cost index funds, the 4% rule still applies without modifications.
2:52 Ignoring fees with the 4% Rule
If you pay expensive advisory and mutual fund fees, however, ignoring their impact on the 4% rule could result in running out of money in retirement.
8:35 Reduce spending to account for fees
You can lower your retirement spending to account for fees, but this could be a major blow to your lifestyle.
10:36 Low cost investing help
There are several low-cost options for those who want investing help.
11:00 Vanguard Advisory Services
11:45 Flat-fee investment advisors
14:37 Digital Advisors
In today's video, we're going to be talking about the 4% rule, and specifically, how investment fees affect our application of the 4% rule in retirement. If you watch the last video, you know, I talked about investment fees during the time when we're saving for retirement and recall that even a quote unquote, small 1% fee, or even a half a percent fee, over a lifetime of investing can easily cost us hundreds of 1000s of dollars. And, believe it or not even a million dollars or more, if you didn't watch that video, I highly encourage it. This video is part of our 4% rule series. So if you haven't watched that, I highly encourage you to go back, there's only about four or five videos in the series at this point and watch them. But as you know, the 4% rule helps us estimate how much we can you know, spend in retirement, we take 4% of our portfolio in year one, and then after that, we just didn't adjust it for inflation. But that raises the question of investment fees. In this video, we're going to discuss five key things you need to understand when it comes to the 4% rule and investment fees.
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)
LET'S CONNECT
Youtube: @rob_berger
Facebook: Facebook: financialfreedomguy
Twitter: Twitter: Robert_A_Berger
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.
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