FM 001: The Truth About Retirement Income & Dave Ramsey’s Shocking ROI and Safe Withdrawal Rate Assumptions with Wade Pfau

In this first session of the Financial Mentor Podcast, Wade Pfau from RetirementResearcher.com, reveals deep knowledge based on published research about retirement income and return on investment assumptions for your portfolio. What prompted this discussion was a disturbing publication by well-known author, speaker, and podcaster, Dave Ramsey claiming you can expect 12% long-term investment returns resulting in an 8% safe withdrawal rate. Unfortunately, Dave's claims are NOT supportable by any of the data and run the risk of hurting listeners who follow his advice. In fact, as you will learn during the interview, Dave's claims are nearly double what the latest research would indicate is realistic to assume with important implications for financial planning. Wade and I set the record straight. In this episode you will get access to one of the top minds in retirement planning research today. Wade's original research has been featured in academic peer review journals and his insights are guaranteed to take your understanding to a greater level. In this episode you will discover: * How to forecast a realistic return for your retirement savings. * Why your investment return assumptions are critically important to your financial planning. * How safe withdrawal rates during retirement are calculated and what amount you should assume. * The critical difference between an average return assumption (statistical fiction) and the real-world compound return assumption that is affected by sequence of returns risk. * The difference between safe withdrawal rate research in the U.S. vs. safe withdrawal rates based on international data, and why you should be concerned. * How much should you save each month to achieve financial security? * How the wealth accumulation phase is completely different from the spending and distribution phase of retirement planning, and how to plan accordingly. * And much more… Resources and Links Mentioned In The Show: * Click here for Wade's RetirementResearcher.com web site. * Dave Ramsey's 8% Safe Withdrawal Rate article on RetirementResearcher.com * Dave Ramsey's website * My retirement calculator for running the calculations. * My book teaching

Om Podcasten

Todd Tresidder from the FinancialMentor.com blog reveals unconventional wealth building advice and advanced investment strategy tips. Discover the next step in retirement planning and personal finance from a former professional hedge fund manager turned financial coach and author. If you are tired of the same old “buy, hold, and pray” and worn out frugality tips then this show is for you. Each episode teaches financial freedom for smart people by revealing what works, what doesn’t, and why. Todd has walked the path to wealth himself and coached hundreds of clients just like you to prove out every principle taught – no ivory tower theories or worn out platitudes. He’s organized the entire wealth building process into a cohesive, step-by-step system complete with specific action steps so you can produce measurable results. This isn’t just another “get-rich-quick” or “get out of debt” show. This is about carefully engineering your finances to take charge of your life so you can live the adventure you always imagined life could be.