In this episode of the One of a Kind Financial Show Daily, host Mike Milligan (joined by co‑host Gary) walks listeners through the primary risks retirees face when they begin drawing down retirement savings. The conversation outlines six key threats: sequence‑of‑return risk, longevity risk, inflation risk, healthcare and long‑term‑care costs, tax risk, and behavioral risk. For each, Mike explains why it matters, cites concrete data (e.g., a 55 % chance a 65‑year‑old couple will live into their 90s, a 3 % inflation rate halving purchasing power over 24 years, average $315 k healthcare cost), and describes how the “One of a Kind Financial Plan” can mitigate the danger through asset allocation, guaranteed income streams, cost‑of‑living adjustments, tax‑aware drawdown, guard‑rail investing, and personalized long‑term‑care strategies. The episode ends with a promotional call‑to‑action for a free consultation with One Oak Financial/Ideas by Mike, followed by a compliance disclaimer clarifying the advisory nature of the content.
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Welcome to the One of a Kind Financial Show Daily with your host, Mike Milligan.
It is Wednesday, November 5th, hump day, and this is Mike on the mic.
So I just, uh, I just want you to know we appreciate you. We know that you're out trying to live a one of a kind life. That's why you're here following us on the One of a Kind Financial Show Daily. Look soon for our, our, our daily show to be available on all the podcasting streaming networks that are out there. But thank you for listening on YouTube as we have kicked this off. This is episode 33 and, uh, uh, we have a treat in store for you today. Uh, big risk. Uh, we're, um, we're gonna talk about 4 big risks retirees face when withdrawing money from, um, their retirements. Uh, Gary and I spent some time on that topic recently on the One of a Kind Financial Show. Enjoy that segment. And, and as always, Be one of a kind.
Even large retirement balances can be vulnerable if not protected from the right threats. Now, decumulation exposes a very different risk landscape than accumulation. This segment, we're walking through the 4 big risks that retirees face once they start drawing income and how to create a plan that can help stand up to each one. Sequence of return risk— we've talked about this on the show before. Mike, explain this to our listeners, exactly what this is and why This is such a dangerous precedent.
This one is the most dangerous and least understood threat to retirement income. This is like if you're walking in the forest, Gary, and, uh, all of a sudden you feel like something, uh, comes out and just bites your ankles like a snakebite. Yeah, uh, this one will just get you when you least expect it because when the stock market drops early in retirement while withdrawals are happening, it can create a compounding problem that's hard to recover from. Even portfolios that average the same return over time can have very little— can have very different outcomes based on the timing of your withdrawals. So we look to create strategies that retirees can help— that will help shield them from poor market timing early in retirement by, by making sure asset location or asset allocation is correct and that they have guaranteed retirement income that actually, uh, that, that they actually cannot outlive.
Longevity risk. Who knew living longer is a risk? But yes, it can be, right, Mike?
Yeah. According to the research from the Stanford Center on Longevity, there's about a 55 Uh, percent chance that one member of a 65-year-old couple will live well into their 90s. That means your retirement income may need to stretch for nearly 3 decades, not just for living, but for truly enjoying those later years.
Inflation risk. Oh my goodness, we haven't said the word inflation yet in the show. What's the matter with us?
I know, I know. It's, you know, we're, we're trying to help people. We're trying to be positive, Gary. But even modest inflation quietly erodes purchasing power over time. A 3% annual inflation rate cuts spending power in half over a 24-year retirement. Many retirees underestimate how much their income needs will increase over time due to inflation. So we look to put investment and income strategies in place that help retirees preserve purchasing power over the long term.
It all starts with that income plan, doesn't it, Mike? That's where you really start, and that's where you bake inflation into it, don't you?
We do, because, uh, you know, the money you start retirement with is not going to be enough to end retirement with if you don't have income that increases as inflation happens. And so, uh, and so we look— we do look to— just like Social Security has a cost of living adjustment, federal pensions have cost of living adjustments. Your portfolio and your investments that are going to generate income need to have cost of living adjustments tied into them also.
Mm-hmm. The show is the One of a Kind Financial Show with Mike Milligan. Mike is with One Oak Financial and Ideas by Mike. I want to give you the phone number, get on the calendar, get you all set up with that comprehensive plan, that one of a kind financial plan that Mike talks about. 800-748-1838. 800-748-1838. Or text the word IDEAS to 600-700- Do it right now. The folks at One of a Kind Financial— the One Oak Financial, I should say— are standing by ready for your phone call. Uh, healthcare and long-term care risk, that is a biggie, biggie.
Yeah, Fidelity estimates the average couple will need $315,000 for healthcare costs in retirement, and that doesn't even include long-term care, which could cost $100,000 plus per year. Most retirees don't have a solid plan for these expenses, and Medicare doesn't cover everything. So that's why when we build the one-of-a-kind financial plan, we look to see what those expenses are actually going to be for you, because these averages are just that— averages. But for some people, based off genetics and longevity, their, their number may be lower. For other people who've had poor lifestyle choices or health hit them harder than others, the cost could be higher. So we get to know what your risk really is because you are one of a kind, and we build a one-of-a-kind plan specifically for you to help address healthcare and long-term care risk.
Yeah, a couple of minutes left. This is something you always talk about too— tax risk, Mike.
It's the largest expense you're ever going to have in your life. I mean, if you've listened to this show before, you can't quote me on saying that, you haven't really been listening. Taxes Are the biggest expense you're ever going to have in your life. RMDs, IRMAA penalties, capital gains, and bracket creep can chip away at retirement income. High earners with tax-deferred balances may face a steep tax bill once RMDs kick in. Without tax-aware drawdown planning, Uncle Sam become— could become your biggest beneficiary during your life and then when you pass away.
Absolutely. And one more, behavioral risk.
Even wealthy retirees can fall victim to emotional decision-making like panic selling, fear-based spending cuts, or reactionary portfolio strategies. A good plan creates guardrails and removes guesswork. Recently on the Ideas by Mike podcast, we had William P. Bengen on there talking about guardrail investing. See, the goal is to build a strategy using guardrails that help retirees sleep at night.
Absolutely. All right, Mike, up against the clock. Final thoughts. Tell us about the One of a Kind Financial Plan.
Yeah, decumulation in retirement brings real risk, but that can be planned for. And if you want to know how your income strategy holds up to market dips, tax shifts, or a 30-year retirement, let's talk. When we talk, we're going to talk about you and who you are, and then we're going to use the One of a Kind Financial Plan to build a plan That where you can outlive your money, where taxes aren't as big a burden as they are to others, an investment plan that actually puts guardrails in so you don't make big mistakes, a long-term care plan where you are taken care of, right, by you for the rest of your life, and a legacy plan that says I love you to the next generation. Call us because we'll build a one-of-a-kind financial plan so you can live a one-of-a-kind life.
This is your chance to benefit from the one-of-a-kind financial plan. Call right now. We still have a limited number of availabilities on our calendar this week. And remember, here's the beauty of this whole thing. The consultation is offered at no cost or no obligation. 800-748-1838. 800-748-1838. Or text the word ideas to 600-700.
One last message from our compliance team. As a reminder, Mike Milligan, Certified Financial Planner, is an investment advisor representative of Advisory Alpha LLC, an SEC registered investment advisor. All opinions expressed by me, Mike, or any podcast guest are solely our opinions and do not reflect the opinions of Advisory Alpha. This recording is for informational purposes only, should not be relied on solely for investment, tax, or legal decisions, and it's in no way intended to communicate or guarantee specific performance or suitability of any security instrument or product as we may have discussed. Investment advisory and financial planning services offered through Advisory Alpha LLC, a registered investment advisor. Insurance products are provided by Ideas by Mike, a licensed agency located in Norfolk, Virginia, and licensed to do business in all 50 states. While tax and legal issues may be discussed in the general course of financial and investment planning, Advisory Alpha does not provide tax or legal services. Please consult with your tax or legal professional prior to making decisions related to these issues. If you want us— an appointment with Ideas by Mike or One Oak Financial, please reach out via our website. This podcast is produced in conjunction with Mike Milligan, LLC.
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