Defining Unicorn Status in Retirement: EDU #2515

Chris’s Summary:
Jim and I are joined again by Jacob as we discuss listener emails about “unicorn” status—our term for retirees whose Minimum Dignity Floor and Fun Number are both covered by secure income. We clarify what qualifies as secure income and explore whether a very low withdrawal rate from a conservative portfolio might serve as a substitute. We also touch on when rental income might count and how longevity risk influences planning.

Jim’s “Pithy” Summary:
This week’s EDU is a dialog episode—where we take listener emails and use them as a jumping-off point to talk through the philosophy behind our approach. Chris and I are joined again by Jacob for a discussion on what it really means to be a “unicorn,” our nickname for retirees whose Minimum Dignity Floor and Fun Number are fully covered by secure income sources.

We get into why secure income isn’t just about predictability, but also about risk pooling, inflation, and longevity. One listener asks whether having an ultra-low withdrawal rate from a conservative portfolio might be good enough—and we talk through that with real-world examples, including a client case Jacob and I worked on. I also go off on a bit of a tangent (as I do) about SPIAs, mortality credits, and why I’m setting up a donor-advised fund that’ll stick around long after I’m gone.

If you’ve ever wondered whether it’s worth striving for unicorn status—or how to think through portfolio-based income—this is one of those conversations that gets to the heart of how and why we plan the way we do. Plus, you get to hear me throw a few curveballs at Chris and Jacob, which is always fun.

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