And I joined the family soft drink business. It’s if I do this, it’s $50 every other week every summer for the rest of my life, which is like $50,000—or whatever that adds up to—decision not to mow my lawn. Good to see you at FinCon. 2. And when you spend less than 10% your income on housing, all that stuff about whether you should save money buying a $5 Starbucks coffee or not, I don’t give a crap. Sometimes, it gets into volunteer work. We certainly can’t time the market but we’re trying to safeguard ourselves from this possibility as much as possible. Again, the health insurance exchanges made that much easier. Timeline has an illustrator tool that does that. I said let’s get out and sit and wait and see what happens and how they resolve this. So was it really starting for you directly as, “I just want to learn about financial planning because I want to do it for myself,” and the decision to become an advisor came later? It’s been a long time since they’ve had to worry about the other problem. I had a good idea of how to get out of the market. There’s just too many dimensions to the problem to have a one-number solution. He pretty much enjoys it because he only takes the shifts that he wants. And there I got back into the market more efficiently than I did in 2009 and 2010. The rest is 60% in VTSAX, 30%ish in Bonds. It is a fortunate coincidence that I was just yesterday on Kitces’ website reseravicng for it, when I bumped into this: https://www.kitces.com/blog/understanding-the-two-5-year-rules-for-roth-ira-contributions-and-conversions/. And I definitely agree. And that’s caused me some problems with some advisors because they felt it wasn’t adequate. The fact that Shiller got a Nobel Prize didn’t really hurt so much. So I’m trying to figure out what 4% rule Kitces is using that is slightly different from what is standard understood 4% rule that did fail. Michael: And so, how long did you continue to run the practice? We call it human capital. You calculate how to amortize your portfolio over a multi-decade time period. Schwab had only just created a service where you could even manage assets for clients on an RIA platform. I think Monte Carlo started hitting the financial advisor world in the late 1990s when Hopewell did an article in the “Journal of Financial Planning” and kind of put it on the roadmap when we started seeing it get added to planning software a couple of years later. It’s non-profit. Michael Kitces: And despite that, or even through all of that, what we find is this 4% initial withdrawal rate adjusting for inflation works. Love the interview! Well, as you know, for most clients, their wealth grows during retirement even though they’re withdrawing. That’s what excited me. Calculate a Safe Withdrawal Rate that ensures your portfolio survives your entire retirement, even if you plan on retiring extremely early! And I don’t know how much further you can take that beyond as you introduce more asset classes. I think I would say to get your education and try to get an internship and follow a path into a larger firm where you have support systems about you. But $20,000 or $30,000 a year is more than enough to supplement that early retirement goal”—you could do anything on the planet you wanted that would pay you $20,000 or $30,000. Quantifying the Value of Financial Planning Advice. Michael: What about from the perspective of retirement and spending advice itself? I had clients that were 5.5% because they are expecting a large inheritance, let’s say five years down the road, that they’re fairly certain of. Michael Kitces and FPA enter uneasy truce after Kitces apologizes and FPA publishes its audited financials. In 2015, Michael Kitces proposed a ratcheting rule for retirement spending that shared the basic framework of constant inflation-adjusted spending while still allowing spending to increase if the portfolio performs well in retirement. Bill: Well, I explained to my clients that even though the markets come down considerably, we’re in a terrible bear market. Learned so much, I always find fantastic content here. One of the internet’s most-respected retirement researchers and financial planners, Michael Kitces, joins me for an episode of the Financial Independence Podcast! I got a lot of local folks. You can decide to consider to work or even make it part of your plan. I don’t think I’d want to become a solo practitioner and financial planner today. But the other half, much of my work in my career has been around retirement research and kind of the intersections of retirements and investment theory as well as retirements and tax strategies. And I wasn’t in that situation, which I thought was cool. So what is the basis for us developing that expectation to them? Bill: It’s probably over a period of a couple of months. How do I set my investments up?”. So there were times when I actually closed my practice to new clients. You’re not relying on your own resources in a very difficult environment. What I’m doing now, basically, is just updating a lot of the numbers I have that are 14 years old. And it’s funny you mentioned Mr. Money Mustache. And when that happens, it usually creates something good, and people somehow pay money for it or somehow money gets generated from it. So, to find this correlation of 0.74 between valuation levels and 30-year safe withdrawal rates that no one had ever written about before, I got pretty excited at the time. BigCharts has an illustrator that does that. Risk in retirement projections great general guide but I never put them into a full allocation, is…! 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