David Blanchett, Iran, Justed discussed on Motley Fool Answers
Is that sound about right? I'm kind of going from memory. I so one of the articles in the area was David Blanchett's retirement spending mile where he talked about how your expenses decline until the very end stages of retirement where health expenses at. That's why it's a smile savior, your expensive start coming back up, but Iran, just with the historical data where if you inflation-adjusted spending. It's four percent withdrawal. Rate with his spending pattern. It was a five and a half percent withdrawal rate. So yeah, that's kind of the the impact that you're you're referring to I guess it to a certain degree does depend on your situation. Like, I could see if you retired with a mortgage, for example. That's clearly a a an expense. That will go away at some point down the road other. Another reason I know why expenses job is because many people enter retirement as a couple, but unfortunately, someone passes away when that happens expenses drop somewhere around twenty to thirty percent. So is it a safe assumption? Do you think that you're spending all the done or do you think it's actually building a margin of safety that maybe should just assume your expenses will go up? Well, I'm comfortable with him in the place in justed spending has that margin of safety. And there was one of the big banks did a study of all their clients than have credit cards and banks banks with them and identify different types of retirement spenders. And so if you can figure out your own situation, the only category, they found where you should really impatient. Your spending growing with inflation with what they called the Globetrotters, which were wealthier individuals who tended to do a lot more traveling in retirement, and then otherwise most of the other group saw their spending decline relative to inflation. So yeah, you can kind of figure out. If you might have something unique that would cause you to leave your spending to grow with inflation. But otherwise. You know, you might just decide you can pay less spending with age and go in that direction as well. Okay. So that's the the inflation part of it. The other part is the steady part, and there's a good deal of the research, and you cover a lot of it in your book is basically choosing some sort of variable spending strategy where the amount you spend each year depends on some sort of factor..