In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau discuss the launch of the third edition of the Retirement Planning Guidebook and respond to audience questions on tax planning and retirement strategy. They explain what’s new in the latest edition, explore tax-efficient planning concepts including Roth conversions, and unpack key issues such as drawdown strategies and preferential income stacking. The conversation also touches on potential future tax changes, offering practical insights to help listeners make more informed retirement planning decisions.

Takeaways

• The third edition of the Retirement Planning Guidebook is shorter and more affordable.
• Tax maps are included in the new edition of the book.
• Roth conversions can be beneficial even if taxes are paid from an IRA.
• Preferential income stacking can significantly impact tax rates.
• Future tax legislation is uncertain, and planning should follow current laws.
• Blending distributions from different accounts can optimize tax efficiency.
• Roth conversions should be considered based on individual tax situations.
• Beneficiary considerations can influence the decision to convert to Roth IRAs.
• It's important to understand effective marginal tax rates for better planning.
• Avoid pulling money from IRAs to invest in taxable accounts.

Chapters

📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement

📣 Want a heads up for the next Retirement Income Challenge? Join the waitlist and be the first to know when registration opens for this FREE 4-day event hosted by Retirement Researcher. Visit retirewithstyle.com/RIC to learn more and save your spot.

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”

In this episode of Retire With Style, Alex and Wade discuss the nuances of the 4% rule and why it may be either too high or too low depending on factors such as inflation, portfolio diversification, market conditions, and individual circumstances. They explore how withdrawal rates work in practice, including the role of variable spending strategies and buffer assets in managing risk and improving retirement outcomes. The conversation emphasizes that determining an appropriate withdrawal rate requires a tailored approach rather than reliance on a single rule of thumb.

Takeaways

• The 4% rule may not be universally applicable due to varying international market conditions.
• Inflation significantly impacts withdrawal rates, especially in countries with hyperinflation.
• A longer retirement horizon may allow for higher withdrawal rates than the 4% rule suggests.
• Portfolio diversification can enhance returns and reduce volatility, potentially supporting higher withdrawal rates.
• Variable spending strategies can provide flexibility and adaptability in retirement income planning.
• Buffer assets can protect against market downturns and provide liquidity during retirement.
• Optimal withdrawal rates may exceed the 4% rule under certain conditions, allowing for a more comfortable lifestyle.
• Understanding the dynamics of withdrawal rates is crucial for effective retirement planning.
• The psychological aspect of spending and investing plays a significant role in retirement success.
• Tailoring withdrawal strategies to individual circumstances can lead to better financial outcomes.

Chapters

In this conversation, Wade discusses the essential financial goals of retirement, encapsulated in the concept of the four L's: longevity, lifestyle, legacy, and liquidity. He emphasizes the importance of assessing financial preparedness through the funded ratio, which compares assets to liabilities. The discussion also covers safe withdrawal rates, suggesting a rate of 4.5% based on the funded ratio approach. Finally, Wade highlights the significance of implementing variable spending strategies to enhance retirement enjoyment and financial security.

Takeaways

• The four L's of retirement are longevity, lifestyle, legacy, and liquidity.
• Longevity refers to essential expenses that must be covered regardless of lifespan.
• Lifestyle expenses are discretionary and enhance quality of life in retirement.
• Legacy goals involve what one wishes to leave for the next generation.
• Liquidity is crucial for managing unexpected expenses in retirement.
• The funded ratio helps assess financial preparedness for retirement.
• A funded ratio of 100% or higher indicates being on track for retirement.
• The safe withdrawal rate based on the funded ratio is 4.5%.
• Variable spending strategies can allow for higher initial withdrawal rates.
• The funded ratio approach provides more confidence in spending during retirement.

Chapters

00:00 The Four L's of Retirement Goals 06:57 Assessing Financial Preparedness for Retirement 16:27 Understanding Monte Carlo Simulations in Retirement Planning 19:52 The Safe Withdrawal Rate: A Critical Discussion 24:02 Variable Spending Strategies in Retirement 28:05 The Impact of Taxes and Time Horizon on Withdrawal Rates

Links

📘 New Release: The Retirement Planning Guidebook (3rd Edition) Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement

📅 Upcoming Webinar: Tax Planning for Retirement in 2026 Join Wade Pfau live for a free Retirement Researcher webinar on Wednesday, January 28 at 1PM ET. He’ll walk through what proactive tax planning should look like before the 2026 tax changes kick in. Reserve your spot now at retirewithstyle.com/podcast 📣 Want a heads up for the next Retirement Income Challenge? Join the waitlist and be the first to know when registration opens for this FREE 4-day event hosted by Retirement Researcher. Visit retirewithstyle.com/RIC to learn more and save your spot. 📊 Curious about your Funded Ratio? Retirement Researcher Academy members get exclusive access to tools like the Funded Ratio Analysis to help guide their retirement planning. Learn more about joining at retirewithstyle.com/academy.

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

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”

Audio Quality Notice: Please note that this episode contains some technical audio issues affecting portions of the recording. While we’ve made every effort to improve the sound quality, some disruptions may remain. For clarity, full transcripts and closed captions are available and linked here for your reference.

In this episode of Retire with Style, Wade Pfau and Alex Murguia break down key concepts in retirement income planning, including present value, discount rates, and internal rates of return. They explain how these tools apply to real-world decisions such as Social Security claiming and choosing between a pension and a lump sum. The conversation highlights the importance of understanding cash flows and using sound mathematical analysis to inform decisions, while still accounting for personal preferences and risk. Listen now to learn more!

Takeaways

• Present value and breakeven analysis are crucial for financial planning.
• Understanding discount rates helps evaluate future cash flows.
• Internal rate of return is essential for comparing investment options.
• Financial decisions often boil down to present value calculations.
• Social security optimization relies on present value analysis.
• Pension versus lump sum decisions require careful discount rate consideration.
• Cash flow evaluation is key in retirement planning.
• Investment decisions should factor in opportunity costs.
• The relationship between interest rates and present value is significant.
• Financial planning is both a mathematical and an artful process.

Chapters

00:00 Introduction to Retirement Income Planning 03:49 Understanding Present Value and Discount Rates 06:40 Evaluating Cash Flows and Internal Rate of Return 09:32 Applications in Financial Planning 12:46 The Impact of Interest Rates on Valuation 15:30 Real-Life Financial Decisions and Break-Even Analysis 18:53 Social Security and Pension Decisions 22:05 The Funded Ratio Tool and Its Importance

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

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”

In this episode of Retire with Style, Alex and Wade break down the key tax changes coming in 2026, including the return of standard ACA subsidies, the extension of current tax rates, and updates to standard deductions. They cover inflation-related adjustments, itemized deductions, charitable giving rules, estate tax exemptions, and what the alternative minimum tax means for retirees. The conversation also explores the new Trump accounts launching in July 2026 and wraps up with a lighthearted discussion on New Year’s resolutions. Listen now to learn more!

Takeaways

• The ACA subsidies are reverting to pre-2021 levels in 2026.
• Tax rates remain unchanged from previous years, providing stability.
• Standard deductions continue to be higher, affecting itemization rates.
• Inflation adjustments will impact the thresholds for tax brackets.
• Charitable contributions now have a deduction floor based on AGI.
• Estate tax exemptions are increasing significantly for 2026.
• The alternative minimum tax may affect more high-income earners.
• 529 plans have expanded eligible expenses for education.
• Trump accounts will allow contributions for minors starting in July 2026.
• New Year's resolutions can be a time for reflection and planning.

Chapters

00:00 Welcome to 2026: New Beginnings 02:13 Affordable Care Act Changes 07:25 Tax Rates and Standard Deductions 09:16 Inflation Adjustments and Tax Planning 11:34 Itemized Deductions and Charitable Contributions 20:32 Estate Tax Exemptions and Business Income 24:44 Alternative Minimum Tax and 529 Plans 28:19 Trump Accounts and Future Planning 29:42 New Year Reflections and Resolutions

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

As we close out 2025 and head into the New Year, we’re sharing one final Best of episode before returning with new conversations in January. This week’s replay is Alex’s top pick from the year, a conversation that stood out for its relevance, insight, and the questions it generated from listeners.

We’ll be back soon with brand new episodes in 2026. Until then, Happy New Year, and thank you for being part of the Retire With Style community!

Repost from Episode 174

In this episode of Retire with Style, Wade Pfau and Alex Murguia sit down with Dr. Daniel Crosby, a leading voice in behavioral finance, to unpack the psychological side of investing in today’s volatile markets. Together, they examine how market swings and media noise shape investor behavior—and why having a thoughtful media diet and disciplined decision-making framework is more important than ever. This conversation lays the foundation for next week’s episode, where the discussion will shift toward deeper questions of wealth and meaning. Listen now to learn more!

Takeaways

• Market volatility can trigger anxiety—even among professionals.
• It’s normal to feel fear during downturns, but those emotions don’t have to drive your decisions.
• Limiting exposure to financial news may help you stay focused and make better choices.
• Recognizing the incentives behind financial media can help you consume it more critically.
• More information isn’t always better—clarity often comes from less, not more.
• Patience matters. Reminding yourself that “this too shall pass” can be grounding.
• Uncertainty often causes more stress than bad news itself.
• Taking time to reflect before acting can lead to better financial outcomes.
• We tend to give others better advice than we give ourselves—pause and consider what you’d tell a friend.
• Automation and structured plans are powerful tools to reduce emotional decision-making.

Chapters

00:00 Introduction to Behavioral Finance and Market Volatility 02:56 Understanding Market Reactions and Investor Psychology 06:01 The Impact of Media on Financial Decision Making 08:47 Navigating Uncertainty in Financial Markets 12:05 The Importance of Patience and Discipline in Investing 15:03 Frameworks for Better Financial Decision Making 17:55 Conclusion and Transition to The Soul of Wealth

Links

Click here to watch this episode on YouTube: https://youtu.be/6pMFE_-u0YM

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! 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”

As the year comes to a close, we’re taking a moment to revisit a few of our favorite Retire With Style episodes from 2025. This week, we’re replaying one episode that stood out in particular as Wade’s favorite conversation of the year, based on both the discussion and the questions it sparked from listeners.

We’ll be back with brand new episodes after the holiday break. Thanks for listening this year, and we look forward to continuing the conversation in 2026.

Repost from Episode 195

In this episode of Retire with Style, Wade Pfau and Alex Murguia talk with William Bengen, pioneer of the 4% rule in retirement planning. They explore the rule’s evolution, how inflation and market valuations shape sustainable withdrawals, and Bengen’s current recommendations. The discussion highlights the role of asset allocation, the importance of withdrawal strategies, and why ongoing monitoring is essential for a secure retirement.

Takeaways

• William Bengen modernized retirement income planning with the 4% rule.
• Inflation is a critical factor in determining sustainable withdrawal rates.
• Market volatility can significantly impact retirement portfolios.
• A comprehensive withdrawal plan should consider multiple factors.
• Current recommendations suggest a withdrawal rate of around 5.5%.
• Asset allocation plays a vital role in retirement planning.
• Investors should consider a rising equity glide path strategy.
• Regular monitoring and adjustments to retirement plans are essential.
• High inflation can permanently elevate withdrawal amounts.
• The 4% rule is not a one-size-fits-all solution.

Chapters

00:00 Introduction to Retirement Income Planning

01:14 The Birth of the 4% Rule

03:03 Understanding Withdrawal Rates

09:15 The Impact of Inflation on Withdrawals

12:45 Market Valuation and Its Effects

18:07 Current Withdrawal Rate Recommendations

21:10 Asset Allocation Strategies

24:04 Free Lunches in Investment Strategies

27:34 Key Takeaways from A Richer Retirement

31:15 Future Research Directions

Links

Get Bill Bengen’s New Book – A Richer Retirement Want to dive deeper into the research behind the 4% rule and how retirement income planning has evolved? Bill Bengen’s new book, A Richer Retirement, is now available—visit bengenfs.com to learn more and get your copy.

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! 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”