How does spending change over the course of your life, and why it might mean you could spend more in retirement. Robert Brokamp discusses those topics and more – including why the 4% withdrawal rate is likely too low -- with financial planning expert David Blanchett, who is a managing director, portfolio manager, and head of retirement research at PGIM DC Solutions. Also in this episode: -The federal government shutdown will delay the release of many figures important to your finances-A recent New York Times article told the tale of how $120,000 worth investments got illegally transferred out of a victim’s IRA – how to prevent it from happening to you-The percentage of items in the CPI that are experiencing annualized price growth above 3% is on the rise-A recent report estimates that there’s $2.1 trillion in left-behind and forgotten 401(k)s – how to find a long-lost account Host: Robert BrokampGuest: David BlanchettEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices
Full Episode
How does spending change over the course of your life and why it might mean you could spend more in retirement? That and much more on this Saturday personal finance edition of Motley Fool Money.
I'm Robert Brokamp, and this week I speak with financial planning expert David Blanchett about his research into how to turn a portfolio into a retirement paycheck and why many retirees could spend more than they do. But first, let's dig into what happened last week in money, starting with the ongoing federal government shutdown.
One consequence is that many economic numbers won't be released, including the previous week's jobs report and, if the shutdown continues, the inflation figures for September, the cost of living adjusted for Social Security, the retirement account contribution limits for 2026, and the new rate for Series I savings bonds, also known as I-bonds.
Another consequence is that many federal employees are furloughed, including nearly half of the workforce at the IRS. But no, that doesn't mean you could ignore the October 15th deadline to get your 2024 tax return in if you filed for an extension. And also, several government websites are down.
So, for example, if you're the victim of identity theft, you'll have to wait until the shutdown is over to report the crime and get helpful resources at identitytheft.gov. While the past is no guarantee of future results, Jeff Bookbinder of LPL did publish some stats about what happened during the past shutdowns. So since 1976, there have been 21 shutdowns, and they last on average eight days.
But the longest was the last one, which was during the first Trump presidency and lasted 34 days. On average, the stock market is essentially flat. during a shutdown with a little bit of variability, the biggest decline being more than 4% in 1979, and the biggest gain being around 10%, again during the last shutdown, which began in 2018.
The treasury market still operates since it's considered an essential service, so interest will be paid and auctions will continue, which is good because our government pretty much runs on debt.
And speaking of identity theft, for our next item, we turn to a recent article from New York Times columnist Tara Siegel Bernard, who wrote about a reader who logged into his wife's IRA at Vanguard and found that $120,000 worth of investments was missing.
It turns out that scammers opened up an IRA in his wife's name at Merrill Lynch, then requested that the investments be rolled over via the Automated Customer Account Transfer Service, otherwise known as ACATS, which is the system that firms use to move money and investments among one another. Fortunately, this reader discovered the crime soon enough and the investments were returned in a week.
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