Episode 248 - The Importance of Efficient Choices for Future Flexibility

In this episode, Ryan Burklo and Alex Collins discuss the challenge of turning variable assets into a consistent income stream in retirement. They emphasize the importance of making efficient choices today to set oneself up for flexibility in the future. They explore the concept of promised-based assets, such as Social Security and pensions, which provide a steady income stream, and compare them to market-based assets, like stocks and bonds, which can be more volatile. They also discuss the risks of relying solely on market-based assets and the benefits of incorporating promised-based assets into one's retirement plan. The conversation highlights the need to consider the entire picture and balance one's portfolio between market-based and promised-based assets.

Takeaways

Making efficient choices today can set you up for more flexibility in retirement.
Promised-based assets, such as Social Security and pensions, provide a steady income stream.
Market-based assets, like stocks and bonds, can be more volatile and may not produce consistent income in retirement.
Balancing your portfolio between market-based and promised-based assets can help mitigate risk and provide more financial security in retirement.

Chapters

00:00 Introduction
06:16 Understanding Single Point of Failure in Retirement Planning
13:09 Balancing Your Portfolio: Incorporating Promised-Based Assets
26:30 Question of the Day