Delay Period Strategy: EDU #2540

11 snips

Oct 1, 2025

Dive into a listener's intriguing delay period strategy, blending laddered CDs, equity ETFs, and delayed Social Security. Discover the importance of spending liquidity and how market conditions could impact planned withdrawals. The hosts discuss the dangers of reliance on market growth and why continuous adjustments are crucial. They also highlight the crossover risk with Social Security and advocate for regular monitoring of Roth conversions. A solid plan can falter without flexibility, especially in unpredictable markets!

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INSIGHT

Delay Period Covers MDF And Go-Go Overlap

The delay period funds minimum dignity floor (MDF) needs until secure income starts and often overlaps with go-go spending needs.
Jim emphasizes MDF is predictable but go-go spending is unpredictable and needs similar protection.

ANECDOTE

Listener Case Drives The Dialogue Format

Jim and Chris describe the dialogue show format where listeners share DIY strategies and hosts critique them.
They use a specific listener's delay-period plan to illustrate trade-offs and adjustments.

INSIGHT

Tax-Planning Window Is A Limited Opportunity

The tax-planning window (post-59½ to RMD age) gives you control to direct distributions and conversions.
After RMDs begin you lose much control because required distributions force taxable income.

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Chris’s Summary
Jim and I return for an EDU dialogue episode focused on a listener’s delay period strategy. His plan includes laddered CDs, equity ETFs, delayed Social Security, and Roth conversions. We use his plan to discuss bracket drift, spending liquidity, and how rising markets can complicate a fixed glidepath. We also cover the tax planning window, crossover risk, and why even strong plans need regular adjustments—especially when they rely on assumptions that may not hold up year to year.

Jim’s “Pithy” Summary
Chris and I are back with an EDU dialogue show, and this one is a deep dive inspired by a listener who shared what he calls a simple delay period strategy. Honestly, I like a lot of it. He’s got a plan. He’s doing Roth conversions, delaying Social Security—all good stuff. He’s even laddered out CDs to fund his Minimum Dignity Floor and his Go-Go fun. That’s great—until you read the line that made me pause: “when the markets rise.” Not “if the markets rise.”

And what if they don’t rise? What if your equity side’s down and your CDs aren’t enough? Now you’re spending from equities when you didn’t want to. Suddenly, the conversion you were planning that year? You can’t do it as planned without jumping to a higher bracket. So, do you cut back on spending or on your planned conversion? That’s how these things fall apart.

He’s got structure, he’s got glidepaths, he’s even adjusting the ladder year by year. But don’t assume growth will keep bailing you out. If you do and markets stall, your whole glidepath strategy starts to crack. And as Jacob and I just talked about at lunch—Go-Go money is tough. You don’t know if someone’s going to call and ask for money for a dream vacation or a home remodel and we’ve got to build with that in mind. We also explain why I call it spending liquidity. Liquidity isn’t enough. You need cash you can actually spend without penalties, volatility, or surprise taxes. That’s what makes this kind of planning work.

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