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Flight #112: How NOT to Run Out of Money in Retirement

How can you avoid running out of money in retirement and still live the life you want? In this episode, we break down the most important strategies for sustainable retirement spending, including the 4% rule, dynamic spending approaches, and the three-bucket strategy. You’ll learn how retirement spending actually works in real life and why your financial plan needs to adjust as your lifestyle and health change over time.

Listen in to hear about the biggest risks retirees face, including sequence of return risk, poor planning, and relying too heavily on one-size-fits-all solutions like annuities. Whether you’re a do-it-yourself planner or prefer to delegate, you’ll walk away with practical steps for knowing your expenses, stress-testing your plan, and creating a retirement strategy that helps you spend confidently without fear of running out.

What You’ll Learn In Today’s Episode:

  • Why retirement spending follows the “retirement smile.”
  • The risks of running out of money too soon.
  • Pros and cons of the 4% rule.
  • How dynamic spending strategies work.
  • The three-bucket strategy explained.
  • Why annuities are helpful—but not for everyone.
  • The danger of sequence of return risk.
  • How to stress-test your retirement budget.
  • Why tracking expenses before retiring matters.
  • Simple steps to build confidence in your plan.

Ideas Worth Sharing:

  • “You only get one shot at retirement, and if you mess it up, that’s too bad.” – Kevin Gormely
  • “Because of the time value of money, the worst possible time to pull money out of investments is when they’re down. The bucket strategy can help you prevent doing that, and I think that’s a huge win in and of itself.” – Charlie Mattingly
  • “That’s what planning is all about, thinking about all of the risks and positive outcomes.” – Kevin Gormely

Resources In Today’s Episode:

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