Colleen Jaconetti of Vanguard - A Goals-Based Approach to Retirement Spending

Aug 16, 2022

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As people live longer and market uncertainty increases, the need for informed retirement portfolio spending strategies is becoming more important than ever.

In this episode, Rusty and Robyn talk with Colleen Jaconetti, a Senior Investment Analyst at Vanguard Investment Strategy Group. Colleen is responsible for establishing and overseeing the investment philosophy, methodology, and portfolio construction strategies used to support Vanguard's advisory services, products, and strategies. With over 25 years of experience in the financial services industry, her areas of expertise include portfolio construction and financial planning, specializing in retirement planning topics, retirement income solutions, and wealth management strategies.

Colleen talks with Rusty and Robyn about Vanguard's research paper, From Assets to Income: A Goals-Based Approach to Retirement Spending. Colleen speaks about interesting topics around the goals-based retirement approach, the four factors that affect people's ability to spend funds from their portfolios, and how investors should consider taxes when planning to withdraw funds.

Key Takeaways

[02:41] - Colleen's role at Vanguard.
[04:21] - Why investors should read Vanguard's paper, From Assets to Income: A Goals-Based Approach to Retirement Spending.
[05:22] - How a goals-based retirement approach outperforms a traditional retirement spending strategy.
[06:22] - Four factors affecting people's ability to spend their portfolios.
[10:16] - Risks associated with income-focused investing.
[12:43] - How investors should consider taxes when planning to withdraw funds.
[15:41] - Colleen's personal investment strategy.
[17:00] - How Colleen maintains her mental and physical well-being to perform at her best.
[17:53] - A list of Colleen's favorite books.

Quotes

[05:02] - "It's important for retirees now, especially with the dynamic spending that as there's market volatility, some retirees may be tempted to reach for yield. In addition, some retirees are asking, can I afford to retire? How much can I spend in light of some of the recent performances in the market?" - Colleen Jaconetti

[06:46] - "When developing a prudent spending rule, the goal for many retirees is to bounce current spending with the potential for future spending, bequest, or other goals." - Colleen Jaconetti

[12:01] - "We try to tell retirees that overweighing dividend-paying stocks are high-yield bonds. For the sole purpose of increasing cash on the portfolio, the income approach can put their principle at higher risk than just spending from it." - Colleen Jaconetti

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1268-OPS-7/19/2022