Redefining Retirement: When Traditional Portfolio Advice Falls Short
Aug 1, 2025
Discover how retirement has evolved from ancient Rome to modern-day, potentially lasting longer than your working years. Delve into the psychology behind transitioning from earning to spending, and why traditional withdrawal strategies may fall short. Learn about the sequence of return risk and the innovative bucketing approach to manage volatility effectively. Explore various phases of retirement spending, along with tips on incorporating alternative investments to boost portfolio stability in challenging markets.
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question_answer ANECDOTE
Ancient Origins Of Retirement
Adam and Andy open with an NFL retirement joke and history of retirement stretching back to 13 BC under Emperor Augustus.
They use Roman and German pension history to show early retirements originally lasted only a few years, not decades.
insights INSIGHT
Retirements Now Span Decades
Life expectancy rose so much that many people may be retired longer than they worked, especially high-net-worth individuals.
Planning must reflect multi-decade retirements, not the 5–7 year expectations of earlier eras.
volunteer_activism ADVICE
Assess Your Market Tolerance First
Before changing your portfolio at retirement, assess your psychological tolerance for market swings now that paychecks stop.
Use that tolerance to narrow feasible allocation ranges rather than blindly adopting a rule-of-thumb mix.
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The Romans invented retirement in 13 BC for soldiers who served 20 years. Today, you might be retired longer than you actually worked.
Andy and Adam explore why traditional retirement investing advice doesn't work when you're looking at a 40-50 year retirement. They discuss the psychology of switching from accumulation to distribution, the real math behind withdrawal rates, and why the old 60/40 portfolio might leave you short.
We cover:
How retirement evolved from a 2-3 year benefit to potentially half your adult life
The sequence of return risk that can derail early retirement years
Why your portfolio allocation should change gradually, not all at once
The bucketing strategy for managing short-term volatility
How alternatives can reduce portfolio risk when stocks and bonds move together
The go-go, slow-go, no-go phases of retirement spending
⏱️ Timestamps:
(00:35) NFL retirement age leads to retirement history lesson
(02:30) From Roman soldiers to modern retirees: how we got here
(05:40) Why you might be retired longer than you worked
(08:00) The psychology of investing when paychecks stop
(12:20) Sequence of return risk and the bucketing approach
(16:00) The math behind sustainable withdrawal rates
(17:45) Why stocks beat bonds over 20-year periods
(22:45) The emotional reality of market volatility in retirement
(29:20) Go-go, slow-go, no-go: how retirement phases affect spending
(32:20) Alternative investments and portfolio diversification
The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice or a recommendation.
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