Larry Swedroe is one of the most respected investment thinkers and writers of our time.

He’s published 8 books on investing, including one of the first books to explain the science of investing to a layperson audience. He recently wrote an ultra-comprehensive guide to retirement planning.

He joins us on the show today to discuss the nuances of investing and retirement planning.

We talk about the stock market (is it going to fall soon? Are we heading for a recession?), we talk about risk (including three dimensions of risk that all investors should consider), and we talk about what traditional retirees vs. early retirees should know.

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Resources mentioned: https://affordanything.com/episode175
Subscribe via iTunes: https://affordanything.com/itunes

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9 replies
  1. Build You Up
    Build You Up says:

    Paula, This guy was fabulous. I had never heard of him until this podcast and now I am scouring YouTube to listen to more of him. He is so well spoken and so articulate and knowledgeable about the markets and about the economy.

    I agree with another poster that we do not need to use a wooden adherence to the 3% rule being the new 4%, I think you could take out more in the months or years the economy is doing well and then draw on savings or bonds during the down times. You could also draw on the dividends in the portfolio even in the parts of the portfolio that are down.

    Reply
  2. sbkpilot11
    sbkpilot11 says:

    I agree with Larry totally, he points out the classic mistakes hordes of people are making – recency bias, home country bias, large cap bias (tip – do not put everything in VTSAX which is essentially a Large Cap Blend fund and has very little Mid and Small caps) etc.

    Reply
  3. Jorge Ferreiro
    Jorge Ferreiro says:

    I think a safe route is to withdraw only the actual yield of your portfolio which in my case is 2.6%. Plus I think you need a further hedge of 50%. That is to say if your expenses are say $100,000 per year then you should only retire when you have $150,000 in portfolio yield. You need to have the ability to absorb bad outcomes. I do not count on social security being there at all in my calculations but view it as a windfall.

    Reply
  4. johnjustis
    johnjustis says:

    As far as 3% vs 4% withdrawal rate goes…..In my mind flexibility should rule the day..No? For example, if the market is having a crappy year then you take nothing and live off cash reserves or maybe work for income for a little bit. One can trip over 15k in America. If the market is doing great, say its up 10% for example, why wouldn't you "sell high" and take 4-5% as needed? Am I missing something?

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