What Will Happen To Your Money After You Retire?

Billy and Akaisha Kaderli are in inspiring couple that retired when they were just 38 years old.

I wrote this story about their money…sort of.

In a sense, it’s as much about your money as it is about theirs.

Image by Pixabay

You can access the story here

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

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14 Responses

  1. Michael CPO, From The far side of the planet says:

    Their story is good … is the below more or less correct…… for long term non resident Canadians overseas there are no Canadian taxes, nor usually rssps , or Canadian pensions etc, only our overseas investments …I am up to almost 3 mill now via foreign stocks and real estate …

  2. Mary says:

    Great piece Andrew. One quick question. You say that there has historically been a 100% chance the money lasting if 25%-40% of a portfolio is in bonds, but for somebody close to retirement or just starting retirement, would you say 25% in bonds is enough or it is safer to go towards 30%-40%? Surely if you follow the bonds:age ratio and have 65%-70% in bonds, this is too conservative?

    • Hi Mary,

      If you are going to live a long time, then I think having 65% to 75% in bonds is too conservative if you want to withdraw an inflation-adjusted 4% per year for at least 30 years.


  3. Ale says:

    Hi Andrew
    I do have a question regarding “withdrawn an inflation-adjusted 4 percent annually”. So I got the idea about withdrawing 4% (although some dispute that 3% might be reasonable) from your investment once you retire, but I don’t get how do y adjust to the inflation. Certainly there is an inflation and thing gets more expensive — and in this case you use 4% rule + the inflation rate?Ex: inflation rate=2% + 4%= 6% annual withdraw for this specific year?

    • Hi Ale,

      Please read this story carefully and look at the annual retirement dollar amounts that are withdrawn for each respective table. You will see how the investor makes each respective year’s adjustment for inflation. https://assetbuilder.com/knowledge-center/articles/the-biggest-risks-of-the-4-percent-retirement-rule


    • Jen says:

      Ale…I also struggled to understand this until Abdrew explained it in a post to me…on one of the articles here.
      When one retires each year one draws 4% of the amount of the pot that one retires with ( irrespective of how much is in it in the years..it s always 4% of the starting year)—- adjusted for inflation…so the inflation amount is calculated off the amount withdrawn from the preceding year E.g say you retire and your pot is $500,000— you take $20,000 that first year (4%). The next year the inflation is 2% ..so you take $20400 (the original $ 20,000 plus the 2% inflation ..based on the amount you took). The 3rd yr you would take $ 20,808 ( the original $20,000 and the 2% inflation on $20,400). I think inflation would be higher but that,s just an example. Anyway that is how I understand it.

  4. ron says:

    To calculate the 4% of assets, do we include the home as well? I live in 2 homes during the year amounting to probably $800k so including/excluding the home in the calculation is at least $32.000 difference per year to spend.

  5. Glory Brooks says:

    Hi Andrew,
    Thank you for all you share about investing, retiring, and so much more financial wisdom. I still have so much to learn regarding investment. I have enjoyed reading various articles from your blog and hope to read your book soon. So, I’m a teacher in Jakarta, Indonesia and have been working there for quite some time. As such, I have thought a lot about retirement and investing. I know many other expat teachers in Jakarta would appreciate and benefit from your valuable insight. Would you have time in your schedule this year to come to my school in Jakarta and share valuable information to the teachers and staff about investing, retirement, etc.? Please let me know as soon as you can if this is possible.

    Thanks so much,
    Glory Brooks

  6. Glory Brooks says:

    Great! Thanks for the response and information, Andrew. I will contact your wife via email right away regarding your next available time.


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