He Retired With $1 Million in 2000. By 2008, Half of It Was Gone. (FQF)

This week in Five Question Friday (FQF):

Question 1: If you retired with $1 million at the 2000 market peak using a 90/10 portfolio and 4% withdrawals, how did you fare through the lost decade?

Question 2: How should you add international stocks — does it matter whether they go in a Roth or a taxable account, and should you own total international or developed only?

Question 3: Does your safe withdrawal rate depend on your asset allocation and where your money is taxed?

Question 4: Do Roth conversions make sense at age 75 when your RMDs keep growing and a planner warns of a "tax bomb"?

Question 5: In retirement, should you reinvest dividends and interest or take them as cash?

Resources mentioned in the video:

How the 4% rule works (Rob Berger): https://robberger.com/how-the-4-percent-rule-works/
Warren Buffett's 90/10 (2013 Berkshire letter, p.20): https://www.berkshirehathaway.com/letters/2013ltr.pdf
Foreign tax credit on international funds (Bogleheads): https://www.bogleheads.org/wiki/Foreign_tax_credit and https://www.bogleheads.org/forum/viewtopic.php?t=454900
Bengen 1996 Paper: https://robberger.com/research/asset-allocation-for-a-lifetime/

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0:00 Intro
1:04 Retiring at the 2000 market peak ($1M, 90/10, 4%)
8:12 Adding international stocks: location, total vs. developed
12:17 Does your safe withdrawal rate depend on allocation?
16:09 Roth conversions at 75 with a growing RMD tax bomb
20:32 Reinvest dividends or take them as cash?

_Boundaries: 0:00 the topic preview; 1:04 "Question number one from Edwin… enough with sugarcoating";
8:12 "Nancy, I am wanting to add international equity"; 12:17 "Question three… the safe withdrawal
rate"; 16:09 "Next question. Rex… tax bomb"; 20:32 "final question… question five… from Joe."_

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. I've since sold my websites, bought them back, and started a new website and this YouTube channel.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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