Ep. 305 – The High Net Worth Guide to Secure Your Retirement
CLICK HERE TO SUBSCRIBE
In this Episode of the Secure Your Retirement Podcast, Radon and Murs discuss the essential steps to creating a comprehensive financial plan designed for high-net-worth retirement. Joined by Nick Hymanson, CFP®, they walk through the emotional and financial transition from accumulating wealth during your working years to distributing that wealth to fund your retirement. They tackle the critical components of financial planning for retirement, including risk management, retirement income planning, and investment strategies that allow you to retire comfortably and confidently.
Listen in to learn about how a solid retirement investment strategy, focused on the Three Bucket Strategy, can help reduce sequence of returns risk and provide clarity and peace of mind. With today’s market volatility and increasing long-term care costs, it’s more important than ever to create a retirement planning guide that ensures your income, protects your assets, and helps you secure your retirement future through thoughtful tax strategies in retirement, retirement withdrawal strategies, and more.
In this episode, find out:
· How the Peace of Mind Pathway guides you from working years to retirement with confidence.
· Why sequence of returns risk can derail your plan and how to protect against it.
· What makes the Three Bucket Strategy essential for high-net-worth retirement success.
· The growing importance of long-term care planning in today’s retirement landscape.
· Key retirement withdrawal strategies to create predictable, reliable income for decades.
Tweetable Quotes:
“Our whole concept revolves around the Peace of Mind Pathway—it’s not just about investments, it’s about creating a complete plan to secure your retirement.” — Murs Tariq
“The safety bucket is what allows you to sleep at night. It’s the foundation that keeps you from worrying about daily market swings.” — Murs Tariq
Resources:
If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!
To access the course, simply visit POMWealth.net/podcast.
Here’s the full transcript:
Murs Tariq:
You’ve been working for decades and saving for decades, and now you’re approaching that moment in time where you’re starting to plan for retirement. Work goes away, and now what you have has to last.
Today, we are walking through that—a high-net-worth guide to securing your retirement. Enjoy the show.
We hope you’ve been enjoying all the episodes from Secure Your Retirement. If you’d like to keep learning and receiving these episodes, hit the subscribe button and the bell so you receive alerts when they come out.
We’ve helped thousands of listeners get on the path to securing their retirement. Now it’s your turn. Let’s dive in.
Welcome, everyone, to the Secure Your Retirement Podcast. Very excited to come to you today with a very special episode entitled “From Work to Wealth: A High Net Worth Guide to a Secure Retirement.”
That’s the name of our podcast, Secure Your Retirement, and the name of our firm is Peace of Mind Wealth Management. We think those two names go hand in hand very well together.
Today, I’m bringing in Nick Hymanson, CFP®, another CFP® on our team, to help walk through some of these concepts.
We talk to our clients all the time about these topics, but I’m sure you as listeners are curious about how someone can construct a financial plan and see that all the way through.
What are the things that we need to be thinking about along the way? Because what happens is—we earn and we save, and then we have to spend it, and that money has to last a long time.
And that’s where a lot of anxiety can come in. How is all of this going to work? Is it going to work at all?
The bottom line is that our whole concept revolves around this idea of the Peace of Mind Pathway, which I will talk about a little bit more. But it’s all-encompassing in this concept of a retirement-focused financial plan.
So, let’s go ahead and kick it off.
The Transition to Retirement
Murs Tariq:
Nick, why don’t you talk a little bit about the beginning part of this—this idea of working and saving, and then shifting into retirement?
What does that transition look like, and what do you see clients going through as they think about this?
Nick Hymanson:
Yeah, so, you know, it’s a good question.
Ultimately, we talk to clients who are trying to figure out when they can retire and what that transition looks like.
For many people, it’s an emotional decision. It’s also a mindset shift—going from accumulating assets to actually distributing assets and beginning to pay yourself a retirement paycheck.
Some of the fears we consistently see are:
- “Am I going to run out of money?”
- “What happens if the market goes down in retirement?”
We have strategies in place specifically around investments that we’ll talk about today to help transition someone from working in that accumulation phase to the distribution phase, while providing some protections along the way.
Defining High Net Worth
Murs Tariq:
Yeah. So, I know earlier I mentioned the title being a high-net-worth guide. I think there are a lot of definitions as to what “high net worth” means.
For today’s purpose, let’s imagine that we’re talking to someone who has saved somewhere in the range of a million dollars or more in investable assets—not including property or anything like that, just liquid, investable assets.
That’s our loose definition of high net worth for today.
Nick’s right—we save and save, and then suddenly we have to start creating our own paycheck.
How is this going to work? How is it going to last me 30-some-odd years? How am I going to provide for my family? Am I going to leave money behind?
Understanding Sequence of Returns Risk
One of the biggest risks we see as people approach retirement and begin the distribution phase is a technical term called Sequence of Returns Risk.
There are a lot of risks we deal with when it comes to investing and planning. You’ve got:
- Market risk
- Inflation risk
- Interest rate risk
But one that’s not talked about enough is Sequence of Returns Risk.
Essentially, depending on when we retire and what types of market returns we experience at the beginning of our retirement, it can strongly dictate the success of our financial outcomes.
For example, two individuals both retire with a million dollars, withdraw the same amount, and have the same average return over 10 years.
But if one experiences a major market downturn at the start of retirement—like 2008 or 2001—while also withdrawing funds, they may run out of money much faster than someone who starts retirement during a bull market.
So, how do we address this?
The Three-Bucket Investment Strategy
Nick Hymanson:
One of the most effective strategies we use to mitigate Sequence of Returns Risk is the Three-Bucket Investment Strategy.
This strategy consists of:
- Cash Bucket – Money market accounts, checking, and high-yield savings for immediate expenses.
- Safety & Income Bucket – Investments designed to provide stable returns (4%-8%) while being protected from market risk.
- Market Growth Bucket – Stocks, ETFs, and alternatives designed for long-term growth (6%-12%).
The key is that retirees don’t rely on the Market Growth Bucket for their monthly income. Instead, they draw from their Safety & Income Bucket, which buffers against market volatility.
This structure provides peace of mind because retirees know they have a steady source of income even if the market fluctuates.
Retirement Withdrawal Strategies
Murs Tariq:
So, how do we effectively withdraw funds in retirement?
Nick Hymanson:
A lot of this depends on tax efficiency and timing. Some key strategies include:
- Maximizing Social Security at the right time.
- Managing withdrawals from pre-tax, Roth, and taxable accounts to minimize taxes.
- Considering long-term care costs and ensuring enough liquidity.
This all fits within our Peace of Mind Pathway, which includes:
- A Personalized Roadmap – Where you are today and where you want to go.
- Implementation – Putting the plan into action with proper investment and withdrawal strategies.
- Ongoing Monitoring & Adjustments – Regular meetings to adapt as life changes.
Next Steps: How to Get a Plan in Place
Murs Tariq:
If you’re listening and thinking, I don’t have a plan like this in place—or I want help structuring my retirement strategy—we’d love to help.