In this conversation, Alex Murguia and Wade Pfau discuss various topics related to retirement planning, including glide paths, asset allocation, index funds, and tax planning. They address questions about implementing a rising equity glide path, asset allocation across different types of accounts, the performance of index funds, and the availability of withdrawal strategy software for retirees. They also touch on the topic of Medicare and HSA contributions. Overall, the conversation provides valuable insights into retirement planning strategies and considerations.

Takeaways

• Implementing a glide path for retirement asset allocation depends on individual circumstances and goals, and there is no one-size-fits-all approach.



• When considering asset allocation across different types of accounts, it is generally recommended to place tax-efficient assets in taxable accounts and tax-inefficient assets in tax-deferred accounts.



• Index funds generally reflect the performance of the stocks in the index they follow, and their daily performance is based on the weighted average of the proportion of each stock in the index.



• Withdrawal strategy software packages for retirees are primarily available to investment advisors and may not be easily accessible to individual consumers.



• Individuals who work for employers with more than 20 employees can delay applying for Medicare after age 65 to continue contributing to their HSA accounts, but it is important to consult with HR and understand the implications of signing up for Medicare.

Chapters

00:00 Episode 131 Starts

01:29 Asset Allocation and Glide Paths in Retirement

04:07 Understanding Index Fund Performance

07:10 The Drawbacks of Equal-Weighted Indices

10:47 Tax-Efficient Asset Location

21:46 Limitations of Withdrawal Strategy Software

28:00 Managing Medicare and HSA Contributions

32:33 The Value of Professional Advice in Retirement Planning

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”