Robo-Advisor vs. Real Advisor to Spend Down Retirement Savings? | YMYW POdcast

Question: Hello YMYW Team – Jim from Santa Cruz “calling” … it’s been 6-weeks since my last confession (oops – 6-weeks since my last email) … as my good friends Jack and Diane are getting-close to Retirement, they’re realizing that how one accumulates assets is really different from how one spends those assets. They’ve heard about a bunch of different methods – Bucket Strategies and things like that – but they’re looking for something simple.
Diane is now wondering about so-called Robo-Advisors … she’s noticed that Vanguard has Vanguard Digital Advisors, Fidelity offers Fidelity Go and Schwab offers Schwab Intelligent Advisors. Each offers more-or-less automatic rebalancing and diversification within an account. These accounts seem to be designed for wealth accumulation, but Diane wonders how well they would work for decumulation. Rather than constantly move $$ from one bucket to another, they can simply make their withdrawals and let Schwab or Fidelity or Vanguard manage the rebalancing. What, if any, are your thoughts on using Robo-Advisors to spend-down retirement savings? Thanks, as always, for the Great Show. Jim from Santa Cruz

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