10 Can’t-Miss Retirement Podcast Episodes From 2023

2. It’s Time to Drop Fixed Withdrawal Rules

Another must-listen episode of the Economics Matters podcast also dropped in July, featuring Kotlikoff and the well-known retirement income researcher Wade Pfau.

In general, even savvy financial planners struggle to fully understand and accurately contextualize Monte Carlo simulations, Pfau said, of which the 4% "safe withdrawal" rule is perhaps the most famous and widely cited example.

According to Pfau, the topic of poorly contextualized Monte Carlo might sound like overly academic or esoteric matter, but it's actually of paramount practical importance.

What is critical to understand is that this type of modeling is highly sensitive to the inputs and assumptions being used, Pfau warned. Monte Carlo simulations, with their focus on generating binary success-failure probabilities, can mask a lot of nuance in middle-ground cases where success and failure are harder to define, “such that we have to view all retirement simulations with a significant degree of caution.”

3. The Real Secrets of Longevity and Retirement Happiness

The connection between wealthy communities and healthy aging is demonstrated in an established and growing body of academic work, but researchers have found much greater variability among middle- and lower-income areas, where some communities far exceed their socioeconomic peers in health outcomes and life expectancy.

As explored in a March report and podcast published by the Stanford Center on Longevity, aging experts often say that “place matters” for a healthy and fulfilling retirement, but they don’t always agree on exactly why.

Some point to the fundamental importance of social connection and community, while others cite more concrete factors, such as exposure to better air quality.

What is clear is that wealth is not the only factor that matters when it comes to a long, healthy and fulfilling retirement, and as such, financial advisors and their clients must account for the “where” and “why” as they build retirement plans.

Credit: YouTube

4. When Spending Too Little Is the Biggest Retirement ‘Risk’

Wealth managers working with clients focused on retirement planning rightly put a lot of focus on ensuring their clients won’t run out of money late in life, but in the experience of Mike Piper, a certified public accountant and author, too little attention is paid to the “opposite risk” of significant underconsumption.

Piper shared this warning during a May episode of Morningstar’s The Long View podcast, hosted by Christine Benz and Jeff Ptak. During the discussion, Piper, Benz and Ptak dug into the ways the planning effort looks different for those clients who “clearly have enough wealth” to navigate the retirement journey.

This risk is especially prevalent in the high-net-worth and ultra-high-net-worth arena, Piper said, and wealth managers working in this space should take time to consider whether their clients may be crossing the line from prudence to paranoia when it comes to retirement spending.

Credit: YouTube

5. Four Flexible 4% Rule Alternatives for 'Safe' Retirement Income

Another insightful episode of The Long View podcast dropped in November, a few weeks after Morningstar published its annual State of Retirement Income report for 2023.

Benz hosted her Morningstar colleagues and report co-authors Amy Arnott and John Rekenthaler in a special podcast episode to dissect the results.

The report suggests new retirees hoping to use a “safe” fixed real withdrawal strategy can plan to spend 4% of their portfolio’s value in the first year of retirement. The topline finding is an important result, according to the group, especially when considering that the safe spending figures for 2022 and 2021 were 3.8% and 3.3%.

But the most important part of the research update, the authors suggested, is the section that considers four distinct flexible withdrawal approaches. As the authors argued, rigid spending frameworks and binary success probability metrics can be important reference points, but they aren’t an actual retirement plan.

Credit: YouTube

6. Plan for Unexpected Risks, and Opportunities, in Retirement

Retirement involves both opportunities and risks, and it's the job of financial advisors to help their clients navigate these two dynamics.

In the extensive experience of Steven Parrish, co-director of the American College Center for Retirement Income, advisors have lots of tools at their disposal to pursue this mission — but they also have to meet high expectations and cope with rapidly changing conditions.

As Parrish emphasized during a recent episode of ThinkAdvisor’s Ask the Retirement Expert podcast, factors such as longevity, market risks and behavioral biases all interact over time to both the benefit and detriment of savers.

Ultimately, advisors who are able to leverage the latest income planning research and product developments can deliver significant value to their clients, Parrish said, while those who fail to embrace emerging best practices are likely to fall behind.

Credit: The American College

7. The Emerging Forces Shaping Income and Social Security Planning

Experts in financial planning commonly argue that the average American's choice about when and how to claim their Social Security benefit is the single most important financial decision they will make in their lifetime.

As noted by Social Security expert Marcia Mantell, the founder and president of Mantell Retirement Consulting Inc. and frequent contributor to ThinkAdvisor, optimizing the claiming decision can result in tens or even hundreds of thousands of dollars in additional lifetime wealth.

Mantell was also featured in a recent episode of the Ask the Retirement Expert podcast, and as she warned, making mistakes in this area can result in undue financial hardship during retirement, especially in cases where married couples fail to carefully coordinate their claiming strategies.

It is also critical to put the Social Security claiming decision in its proper context — alongside considerations about the client’s broader investment portfolio, lifestyle expectations and longevity projections.

8. Don’t Panic! Social Security Isn’t Going Away Anytime Soon

There may be good reason for younger generations of workers to question whether they will receive the full promised value of their Social Security benefits, given the significant financial challenges facing the program. But those who are near or in retirement today should continue to plan to receive most, if not all, of their presently legislated benefits.

In fact, according to Brian Bass at McLean Asset Management, clients who are planning for retirement in the near term could very well shortchange themselves by making poor Social Security claiming decisions based on fearful speculation about the program’s future.

Bass shared this important perspective during a May episode of the “Retire With Style” podcast, hosted by Alex Murguia and Wade Pfau.

Big questions loom, the trio agreed, but what’s clear today is that workers who have the means can put themselves in a much better position by staying committed to saving.

9. Why AI Poses a Mortal Threat to Financial Advisors

Produced by the Investments & Wealth Institute, the goal of the Exceptional Advisor podcast series is to help financial professionals better serve their clients, differentiate themselves from the competition, and improve their ability to communicate the competencies that make them exceptional.

During an episode published in October, the researcher and planning expert David Macchia discussed the implications of artificial intelligence for the financial advisory profession. Macchia highlighted AI's potential advantages, such as cost-efficiency and a unique user experience, but also acknowledged its current limitations in providing accurate advice.

The conversation underscored the importance of trust in the advisory profession, with listeners left to wonder whether AI can achieve a similar trust level. Ultimately, Macchia emphasized the need for human advisors to adapt and integrate AI into their practices to stay competitive in the future.

10. The Essentials of Tax Diversification and Retirement

As a financial planning concept, the subject of tax diversification is relatively simple: It means utilizing a number of different types of investing and savings accounts that are taxed differently for federal and state income tax purposes.

But, as explored an early 2023 episode of the Great Retirement Debate podcast hosted by Ed Slott and Jeff Levine, putting the concept of tax diversification into practice is anything but simple, especially when it comes to planning for retirement.

Slott, a nationally recognized IRA expert and founder of Ed Slott and Co., and Levine, the chief planning officer of Buckingham Strategic Wealth, say the tax diversification challenge stems from two principal factors: the complex and evolving nature of tax laws plus the general uncertainty about what the future may bring for any given individual.

As such, when it comes to tax-smart retirement investing, there are many rules of thumb but few absolutes.