The Personal Finance Podcast

Episode: "10 Steps to Creating the Ultimate Retirement Plan"

Host: Andrew Giancola

Date: January 26, 2026

Overview

In this episode, Andrew Giancola breaks down the 10 essential steps to build what he calls “the ultimate retirement plan.” Andrew emphasizes starting early, regularly reviewing your plan, and tailoring each step to your unique goals—whether you aim for early retirement or a traditional timeline. With actionable advice and relatable stories, Andrew aims to demystify retirement planning so anyone can confidently take control of their financial future.

Key Discussion Points & Insights

1. Define Your Retirement Target [22:29]

• Clarity is the goal. Andrew urges listeners to define when they want work to become optional and what retirement will look like for them (purpose, location, activities).
• “Most people wait too late. As a wealth builder, I don’t want you waiting too late.” (Andrew, 03:20)
• Exercise: Map your perfect retirement year. Consider housing, travel, vehicles, family support.
• Three Buckets of Retirement Spending:
  • Needs: Essentials like housing, food, healthcare.
  • Wants: Travel, hobbies, memberships (“Maybe you never want to make dinner again… then budget for eating out every day!” – 23:50)
  • Legacy: Gifts or support for family/charity.
• Geography matters. Moving to a different state/city can significantly affect costs & taxes—choose based on lifestyle, not just money.

“Retirement isn’t stopping any income. It’s just stopping doing work that you don’t want to do...it just means you don’t have to work your traditional job anymore.” (Andrew, 16:18)

Notable Example

• Mark and Sarah’s Story:
  • Ages 42 & 40, with two kids
  • Plan: Retire at 60, downsize house, travel 2x/year, help kids with college/wedding/home
  • Calculate needs, wants, and legacy into annual requirement—adjust for cost-of-living by considering a lower-tax state, saving $14,000/yr.

2. Calculate How Much You Need [37:15]

• Build a retirement budget in today’s dollars.
• Spending in retirement often 75–80% of working years.
• Annual Review: Track your retirement number, adjust as life changes.
• Safe Withdrawal Rate:
  • Early retirees: 3–4%
  • Traditional: 4–4.5%
  • Example: $80,000/yr needs = $2M portfolio at 4%
• Adjust for inflation: Increase contributions yearly to maintain buying power.

“Nobody else talks about this, but I think you need to track your retirement number on a yearly basis.” (Andrew, 42:10)

3. Map Out Income Sources [50:20]

• Estimate Social Security (ssa.gov)—plan for different claim ages; delay for higher benefit.
• Other sources to consider:
  • Pensions, annuities, rental income, part-time or passion income.
• "Guaranteed income dramatically lowers the failure rate in retirement." (Andrew, 55:55)
• Portfolio's purpose: fill the gap between annual spending and guaranteed income.
• Flexible strategies like “Barista FIRE” (part-time jobs for income/benefits) can bridge gaps.

4. Plan for Healthcare [1:00:40]

• Healthcare costs are a major wildcard.
• Pre-65: ACA premiums range widely.
• Post-65: Medicare plus supplements; Fidelity estimates $315,000 in expenses for a retiring couple.
• HSAs: Use as retirement health vehicle; aim to fund to at least cover projected healthcare costs.

5. Design Accumulation Plan [1:09:50]

• Work backward:
  • Portfolio goal, years to retirement, conservative rate of return (plan at 7%, not an optimistic 10%).
• Maximize tax-advantaged accounts (401k, IRA, HSA).
• For early retirees: taxable brokerage is key.
• AUTOMATE! Set up auto-contributions to all savings/investing vehicles.
• Pick a core portfolio strategy and stick to it.

6. Protect Wealth While Building [1:17:56]

• Emergency fund:
  • 1, 3, 6 months’ worth, growing to 1-2+ years of cash for retirees (in high-yield accounts, CDs, or T-bills).
• Term life and disability insurance:
  • Only necessary if someone depends on your income.
• Digital protection:
  • Freeze your credit, use password managers, and services like DeleteMe to remove personal info from data brokers.
• Review asset allocation to avoid having too much or too little risk as you approach retirement.

7. Plan the Transition to Retirement [1:31:34]

• Determine withdrawal order (typically: taxable → traditional pre-tax → Roth), but personalize for taxes, Medicare, legacy.
• Plan for RMDs (Required Minimum Distributions).
• Build up "cash buckets" (emergency funds) to reduce the need to sell investments in a down market (sequence-of-returns risk).

8. Social Security: Integrate Strategically [1:36:09]

• Coordinate with your spouse. Survivor benefits can make delaying the higher-income spouse’s SS powerful.
• SS can reduce portfolio stress—covering needs lowers income withdrawal stress.

9. Address Long-Term Risks & Legacy [1:39:33]

• Long-Term Care: ~70% of people over 65 need it.
• Discuss wishes with family early; long-term care insurance is complex and costly—consider self-funding.
• Wills, POA, beneficiary reviews, trusts—these legal tools are a gift to your heirs.

“Estate planning...is a gift to the people you love so you’re not a liability.” (Andrew, 1:45:51)

10. Create an Ongoing Review Rhythm [1:48:10]

• Annual review and adjustment:
  • Spending, portfolio value, asset allocation, withdrawal rate, key insurances/estate plan.
• Prioritize personal life changes (marriage, kids, health) over market noise.

“Personal finance is personal...there are personal decisions you need to make.” (Andrew, 1:52:00)

• Simple approach: One-page financial plan with target age, spending, portfolio goal, current status, allocation, and key insurance/estate notes.

Memorable Quotes & Moments

• “Clarity was the key word...they were clear about their intentions, clear about their goals, clear on exactly what they wanted to do.” (Andrew, referencing Fidelity study, 13:40)
• “Moving to a lower cost-of-living location just for money? I’d never do that. But if you love the lifestyle, that’s a great reason.” (Andrew, 18:12)
• “You can always earn more money. We can always find more ways to get money. But you need to live the life you want.” (Andrew, 20:49)
• “If someone depends on you, get term life insurance. If not, you don’t need it yet.” (Andrew, 1:20:32)
• “If you have a health problem, you only have one problem.” (Andrew, 1:51:30)

Structure & Timestamps of the 10 Steps

1. Define Your Target – 22:29
2. Calculate How Much You Need – 37:15
3. Map Out Income Sources – 50:20
4. Plan for Healthcare – 1:00:40
5. Design the Accumulation Plan – 1:09:50
6. Protect Your Wealth While You Build – 1:17:56
7. Plan the Transition – 1:31:34
8. Integrate Social Security – 1:36:09
9. Plan for Legacy & Long-Term Risks – 1:39:33
10. Review & Refresh the Plan Every Year – 1:48:10

Final Takeaways

• Start retirement planning as early as possible—clarity and regular updates are crucial.
• Your retirement plan should reflect your unique dream lifestyle.
• Annual review is a must; life changes matter more than market volatility.
• Think holistically: consider health, housing, family, legacy, security, and happiness—not just numbers.
• “It’s personal finance, not general finance.” (Andrew, 1:51:55)

For more resources and tools, Andrew encourages joining the Master Money Academy and subscribing to his newsletter for ongoing education and step-by-step guides tailored to any stage of the financial journey.