Helping Your Girlfriend with Retirement Planning

Last week I joined Ben Carlson’s live Youtube show called Portfolio Rescue. Each week, Ben pulls the most relevant questions we receive from listeners, watchers, and readers of our finance content. I helped answer two listener questions that dealt with financial planning issues. The first was from a man who is helping his girlfriend save for retirement. Despite my surprise at how the dating scene has changed since I got married, I am excited to see that couples are thinking seriously about money before marriage. We discuss 1099 versus W2 wages and the ability to defer more savings through SEP IRA contributions or a Solo 401(k) plan.

Next, we dive into a technical question about Monte Carlo simulations for financial plans and how to interpret them. TLDR: stocks are more volatile than bonds, which means an all-equity portfolio doesn’t always have the highest probability of success. The math for accumulation and savings is very different from decumulation and spending. And I surmise that no one’s goal should be to die with the largest pile of cash, but rather to safely enjoy their hard-earned savings while leaving enough cushion for longevity risk.

You can watch my answers and the entire episode of Portfolio Rescue below, and don’t forget to subscribe to our Youtube Channel, The Compound for more great financial education content. Submit your Portfolio Rescue questions to!

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