ABOUT THE GUESTS

mary beth franklin
ABOUT Mary

Mary Beth Franklin is a contributing editor for InvestmentNews and is a nationally recognized expert in Social Security claiming strategies.  Formerly a Capitol Hill reporter at United Press International and retirement and tax editor at Kiplinger Personal Finance, Mary Beth has been working in the finance industry for years.  She frequently speaks and writes about current research on [...]

Michael Kitces
ABOUT Michael

Michael Kitces is the publisher of the financial planning industry blog Nerd's Eye View through his website kitces.com. He is a co-founder of the XY Planning Network, the practitioner editor of the Journal of Financial Planning and the publisher of the e-newsletter The Kitces Report. In 2010, Michael was recognized with one of the FPA’s “Heart of [...]

ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently leads Pure Financial Advisors along with Michael Fenison and Joe Anderson. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. As of [...]

Published On
July 4, 2015

When the market goes down, where are you going to get your income? What asset class are you pulling from? Joe and Al discuss recency bias and the fear & greed factor. Sticking to the theme of the retirement “fire drill,” Joe has a discussion with Michael Kitces on efficient withdrawal strategies to help you create a steady retirement income. Also on the show is Mary Beth Franklin who is an expert on Social Security claiming strategies.


2:07 “Money’s money, but how it’s taxed and how you invest it when it comes to creating income; it’s a totally different ballgame”

4:48 “If you do the appropriate tax strategies within your investments, you can add significant return just from a tax savings”

10:30 Start of Interview with Michael Kitces

11:37 “What are some of the things people should look at when they are now starting to take withdrawals?”

11:46 “Number one is figuring out what spending is going to look like…and where am I going to draw that money from?”

12:06 “The second challenge that we have to deal with that overlaps this is how am I going to test my portfolio?”

12:46 “What most retirees need to do in today’s real world situation is to draw interest on things like bonds, we’re going to draw on dividends from stocks, we’re going to get some capital gain appreciation on equity”

14:04 “That balancing of how are going to do the spending and liquidation, how are we doing it for tax purposes and then how are we going to invest to that; to me these are the three pillars of generating retirement income”

16:12 “Michael, you’ve got the choice of Social Security. You could take that as early as 62 and as late as 70 so how does that fit into your thinking?
17:14 “Because Social Security is inflation-adjusted, and delaying your benefit gives you a bigger inflation-adjusted benefit, ironically delaying Social Security turns out to be one of the best means we have to defend against the risk of high inflation”

18:17 “There are three things that will really screw up your retirement portfolio: getting bad market returns, having high inflation and living way longer than you expected”

20:52 Start of Interview with Mary Beth Franklin

21:18 “As most people know, yes you can claim Social Security benefits as early as age 62, but if you do that, your benefits will be permanently reduced for the rest of your life and you will not be able to use the creative claiming strategies [which I will describe] which could mean the difference of $100,000 or more over the lifetime of a married couple”

25:45 “Let’s say I claim my benefit at age 62 and my wife is age 66. She’s full retirement age and I decided to claim mine early—if she takes the spousal benefit at her full retirement age event though I claimed mine early, is she going to get a reduction in her benefit?”

31:10 “2010 is when they changed the rules; what that change was was that regardless of your income level, you can do a Roth conversion. Before 2010, you had to make less than $100,000…now anyone can do a conversion”

38:30 “We talk to people all the time, and I would say for the majority of cases it makes sense for you to at least be considering Roth conversions”