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 askthecompoundshow@gmail.com!

Print Friendly, PDF & Email

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

No Responses