Dynamic Withdrawal Strategies- Building a Plan You Will Actually Follow

Be one of a kind with Mike's Plan.

Welcome to the One of a Kind Financial Show Daily with your host, Mike Milligan. You know, we, um, we, we love producing this daily show for you, and it really is a culmination of the previous weekend's radio show that comes from the One of a Kind Financial Show. You know, I thank you for those who have reached out to us from the radio show and both the daily podcast To say, uh, yes, I need to talk with Mike and the team about my personal financial plan. Well, today we have something very special for you because we're going to talk about the best strategy, you know, you could have. And the best strategy is one that you will follow. Uh, we like to build one-of-a-kind financial plans for your one-of-a-kind life. And we've seen hundreds and hundreds of those implemented over the last 5 years. And I've, I've implemented thousands of financial plans over my 26 Plus years of experience in the financial services industry. So today we're going to talk about those strategies, uh, recently from a segment that we had on the One of a Kind Financial Show. Enjoy that now.

He has 26 years experience. He's a fiduciary. We're talking about Mike Milligan, and the show is the One of a Kind Financial Show. I'm your consumer advocate, Gary Nolan. Mike has helped hundreds of clients achieve their Financial retirement goals. If you missed the phone number in the prior segment, here it is: 800-748-1838. 800-748-1838. Or text the word ideas to 600-700. Well, no one retires into a spreadsheet. The most sophisticated plan in the world means little if it doesn't match your goals and your personality. Now, in this segment, we're talking about how to design a spending plan that works for your life and gives you confidence to actually know how to use your money well. Know your income floor. What do we mean by that, Mike? Your income floor.

Gary, you have me laughing over here when you said nobody retires into a spreadsheet.

Right. Absolutely.

Well, the income floor is like a baseline. It's the essential monthly income you need. It creates stability. It gives you clarity on how much of your portfolio needs to be devoted to guarantee that you have the income to meet the expenses. Everything above that can be more flexible or growth-oriented. But if you don't have your floor set, you're always going to feel like you're behind the 8-ball in just based in the basics of life.

And income incorporated, guaranteed income where it makes sense, that's important too.

It is. So, like, uh, if that, if that baseline or that income floor is not covered in full by Social Security or pensions, well, you have to look at where you can get guaranteed income from. And that's, that's through annuity solutions. And, and Gary, people say often, I hate annuities. And I get it, right? Uh, I love market, market-based growth. And so, obviously, you would hate annuities because if you compare the return of an annuity to market-based growth over a 50-year period, market-based growth is going to beat it. But here's the other thing that you hate. You hate not having enough money at the end of the month to cover your expenses.

Right.

So, what do you, what do you hate more? Living a life without the money you need or annuities, right? Because those 2 problems, when you look at them together, one solves the other problem, the other one creates other problems. Because when you don't have enough money to spend for your basic expense, then you start going into credit card debt. Then all of a sudden you fall into, you know, scammer possibilities because people asking you to, to consolidate your debt. So annuities are part of the things that help guarantee your income and create dependable income. Some retirees find peace of mind knowing a portion of their bills are covered No matter what the market does. And then, and then you have the flexibility for growth in other growth-oriented when you have your income guaranteed.

And we can talk about annuities throughout the whole show. Then we have done it in the past. And not all annuities are created equal. Some are not so good and some are great. It depends on the situation. And Mike will put you in the proper annuity that makes sense for you. Bucket planning helps reduce decision fatigue. We talked about bucket strategies before on the show.

Yeah, the bucket strategy is where you have some short-term cash, some mid-term stability, and some long-term growth. This gives, uh, the, the buckets— it just gives you a great visual framework of like where your money should go. The bucket strategy simplifies decision-making and can help prevent rash moves during downturns. For instance, if the market goes down and you've got money in the long-term growth bucket that you don't need now, well, you That by having a bucket in place, it creates a guardrail against you making an irrational decision to liquidate money that's for the long-term. This also aligns your spending with time horizons also.

The show is the one-of-a-kind financial show with Mike Milligan. I'm Gary Nolin, your consumer advocate. I want you to get on Mike's calendar to get you all set up with that comprehensive plan. There's no cost. There's no obligation. That phone number is 800-748-1838. 800-748-1838 or text the word ideas to 600-700. The folks at One Oak Financial standing by this weekend ready for your phone call. Get on the calendar. 800-748-1838 or text the word ideas to 600-700. Dynamic withdrawal strategies are more flexible, Mike.

Yeah, rather than sticking to a rigid 4% rule, dynamic withdrawals adjust based on portfolio performance. For example, a guardrail strategy might increase spending in good years and reduce it slightly in bad ones. This approach can extend portfolio longevity and ease emotional stress.

Legacy goals must be intentional. What do you mean by that?

Many retirees want to leave money to the kids or charities, but without clarity, legacy plans can be inconsistent. Decumulation planning should include conversations about what to give, when to give, and why you give. Giving while living may also offer more joy and control for you, but it also will see how others spend and use your money, so you'll know how to give the bigger gifts when you pass away.

Yeah, a lot of times you want to spend that money while you're still alive so the kids and the grandkids can enjoy it and you can create memories for them. Mike, am I right?

That's exactly right, because the things that really matter at the end, like when you're no longer here, is money will go away, assets will be dispersed, right? They'll be used, they'll be incorporated as their own. But experiences, uh, that you have will be talked about for generations to incur. So the more experience you have, the more fondly you'll be remembered for decade upon decade upon decade.

Aligning with your faith and values. What does that mean?

So financial decisions are often emotional and spiritual, not just mathematical. Whether it's tithing, supporting missions, or caring for family, your income strategy should reflect what matters to you.

Tell us about the One of a Kind Financial Plan.

The One of a Kind Financial Plan was something that I, that I wrote the book on that we have implemented into One Oak Financial. It helps create a tax strategy that minimizes Lifetime taxes. It is a retirement income plan that you know beyond a shadow of a doubt will create a guaranteed stable income for your whole life. So, the fear of running out of money and the anxiety that comes with that can be alleviated. You will sleep better at night. And then we created an investment plan that ties back to what matters most to you, like travel, legacy, long-term care. Uh, health needs, helping your— helping the next generation really do what they want in this life. Then we build a long-term care strategy that allows this younger version of you to take care of the older version of you. And then ultimately, we build a legacy plan that says, I love you, right? The one-of-a-kind financial plans that we develop help, help our clients feel more safe and secure, helps them understand and educates them along the way. Because ultimately, we want them to live a one-of-a-kind life.

That's what we want you to do. And it all starts by picking up the phone and dialing this number: 800-748-1838. 800-748-1838. Or text the word ideas to 600-700. 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 broker-dealer. 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 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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