Good morning, Retirement Starts Today Community,
Welcome to Every Day is Saturday, the newsletter reminding us that in retirement, every day is Saturday (even on days when the stock market looks more like a Monday).

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Before we dive into the headlines this week, I want to acknowledge what many of you are already feeling—the market is down. As of this writing (April 7), the S&P 500 is off about 14% year-to-date. If you’ve been with the podcast for a while, you know that we prepare for times like these. This isn’t a surprise—it’s part of the plan.

That’s why we don't put 100% of our money in stocks, especially in retirement. That often-criticized 40% allocation to bonds and cash? It’s doing the heavy lifting right now. When stocks misbehave, bonds and cash give us years of retirement runway—so we don’t have to sell low.

Volatility is the price of admission for long-term growth. Hang in there.

​Listen on Spotify. Listen on Apple Music.​

Outline of This Episode​
(0:00) Market update: S&P down 14% and what to do about it
(2:20) Retirement Headline: Morningstar’s research on sequence of returns
(5:05) How a rough first five years in retirement can wreck your plan
(10:10) How to use cash, bonds, and flexible spending to weather the storm
(15:00) Listener question: Should I consolidate my mutual funds at Schwab?
(22:40) Why investing = betting on human progress

Retirement Headline: Sequence of Returns—Why the First 5 Years Matter Most

This week’s article comes from Morningstar’s Jeffrey Ptak:
“How to Avoid Outliving Your Retirement Savings”

Here’s the key insight: The order of returns in retirement matters more than the average. A strong start gives you flexibility. A rough start? That can derail even the most well-funded retirement.

The Data:

• With a 90% stock portfolio, a 3.1% withdrawal rate gives you a 90% success rate over 30 years.
• But if you lose money in the first five years, your risk of running out jumps dramatically.
• If you gain in those first five years, failure drops to just 4%.

This applies to all portfolios—not just aggressive ones. The first few years are fragile. That’s why we build retirement runway with bonds and cash.

Five Key Takeaways from the Article:

1. Create a 5-Year Safety Net​
   Build your income runway using cash, CDs, and short- to intermediate-term bonds. That’s how you ride out market crashes without panic-selling.
2. Diversify (Really)​
   100% stocks only support a 3.1% withdrawal rate. A more balanced mix can support 3.7% or higher—without more risk.
3. Use Flexible Withdrawals (aka Guardrails)​
   Reduce spending in down years, increase it in strong years. It’s not just smart—it’s sustainable.
4. Delay Big Expenses​
   Want to remodel the kitchen or buy an RV? Consider waiting until after the first 5 years of retirement. A strong foundation creates long-term freedom.
5. Reevaluate After Year 5​
   If you’ve made it through the early years without major losses, consider loosening the purse strings. You’ve earned it.

Listener Question of the Week

Great question—and one I hear often. In short: yes, there can be major benefits. Here’s why:

Simplicity​
Tracking your allocation, performance, and tax situation becomes much easier with everything under one roof.

Better Tools & Research​
Schwab, Fidelity, and Vanguard offer strong retirement tools, calculators, and customer service that standalone fund companies may not.

Access to More Fund Families​
Instead of multiple logins, you can manage dozens of fund options in a single account—and possibly get access to lower-cost share classes.

Lower Costs (Sometimes)​
Especially if your old 401(k) plan has high expense ratios, rolling into an IRA may reduce your annual investment fees significantly.

Caution:​
Having access to 15,000+ fund options can be empowering—or overwhelming. More choices don’t always mean better outcomes. If you’re consolidating, have a clear plan for how you’ll invest once it’s moved.

Resources & Mentions

Morningstar: “How to Avoid Outliving Your Retirement Savings” by Jeffrey Ptak​

My new book, Retirement Starts Today: Your non-financial guide to an even better retirement, is available! To order click here​

That’s it for our three hundred and seventy-sixth installment of Every Day is Saturday. If this episode helped you feel more confident about your plan, would you consider forwarding it to a friend? It’s the best way to help others enjoy the retirement they’ve worked so hard for.

Have a great "Saturday",
—Benjamin Brandt (your humble host)

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