Retirement is a milestone we all aspire to, and for many, choosing a lump sum can be the key to financial freedom. However, it can also be daunting. While enticing, the prospect of receiving a substantial cash payout from your employer can come with a particular responsibility and the need to make critical financial decisions. This lump sum represents your life’s work, and it can be challenging to make it last throughout your retirement. The fear of not outliving your savings, the uncertainty of how to invest wisely, and the ever-present question of whether you’re making the right choices can cast a shadow of unease over this opportunity.

“There’s this old adage that once we retire, we have to be really conservative with our investments. And it comes from this place of not having a ton of historical stock market data. But today, you don’t have to do that anymore if you allocate your investments properly.”

In this episode of A Place of Possibility, we aim to shed light on this complexity and empower you with the knowledge and strategies needed to navigate this path with confidence and clarity. We’re diving deep into the world of lump sum retirement planning, guiding you through the crucial steps to retire with confidence and security.

Join us as we discuss:

  • The three main aspects to consider retiring on a lump sum
  • How to tackle inflation in order to continue living comfortably through your later years in life
  • Rule of thumbs to follow for keeping a healthy and effective retirement portfolio
  • Tips for developing and maintaining a retirement budget
  • Why must factor end-of-life support and care into your budget

And much more!

Our goal is for you to walk away with a wealth of tips, tricks, and strategies to help you successfully retire on a lump sum. Regardless of whether you have a high-risk tolerance or not, it is achievable. Your next phase of life is a place of possibility, and we're here to help arm you with the knowledge to make the most of it.

P.S. Looking to meet with Richard or Angela at our office in Alamo, CA? Want to discuss more of what you heard in this episode? Wondering where the heck you need to get started or what all of this means for your retirement plans? Schedule a free 30-minute session and find the peace of mind you deserve for the rest of your life. You can also reach us by calling 925.736.6410 or sending an email to

“You can't rely on a pension or a steady fixed amount of money. It won't provide the same amount of income to you over your lifetime. You've got to have an inflation edge.”

We’re proud to present you with our “Know Your Possibilities Guide,” a tool and free resource for you to take notes, review, keep on hand, or even share with your friends and family. So grab your copy, click the play button, and follow along. You’re just minutes away from discovering your next Place of Possibility.

A Glance at this Episode:

0:00 Introduction

0:23 We’re touching base on the latest inflation updates. The good news? Social Security recipients are getting a boost thanks to cost-of-living adjustments.

2:10 Today, we’re talking about retiring based on a lump sum of money. Can you contribute to a 401k and live off that for the rest of your life? Yes, and many people have to now because there are no more pension plans!

2:40 First, let’s define a “Lump Sum.” What we mean by this is the amount of money you have saved up over your life and have put away for retirement. This can include your portfolio, 401k, inheritance, savings account, and more.

3:42 If you’re interested in retiring from a lump sum, there are three significant aspects to consider. The first is knowing how much you should withdraw annually; that magic number is 5%. Listen as we discuss why.

5:08 Did you know that retirees should never have more than 70% of their portfolio invested in equities or stocks – especially if they have a high withdrawal rate.

6:39 If you’re concerned about the risk of investing in the stock market, we wouldn’t recommend having less than 40% of your portfolio in stocks. Why? To outpace inflation.

6:03 Wondering how to calculate how much you can safely withdraw annually? Take the total amount of money in your portfolio and multiply it by the percentage 4 or 5% – your withdrawal rate.

8:39 The second consideration is allocation. How you distribute your money will play a massive role in how much you’ll have to live off of.

10:17 Next, Richard shares his father’s retirement story, a perfect example of why we must prepare for inflation.

11:39 The ideal stock-to-bond ratio in your portfolio is 40% to 70%. Largely, that depends on your risk tolerance and your personal investment experience.

12:50 How much should you expect to see in returns from your stock portfolio? Listen in as we discuss an example of what some returns might look like.

15:07 The third consideration for retiring off a lump sum is taxes. You will always have some tax to pay, but it mainly depends on what kind of account you have.

17:41 One of the biggest concerns we hear when people walk into our office is, “What if you run out of money?”

20:01 Richard highlights two critical elements that you must remember: Don’t fall in love with any one stock, and your portfolio should be diversified. And don’t worry about the markets being down.

22:49 Losing all your retirement money is unlikely if you invest 40-70% of your retirement in the stock market. The real risk is a lack of self-control.

25:26 Self-control also goes hand-in-hand with a solid retirement budget. Here are a few things you may want to consider.

26:35 Have you budgeted for end-of-life? Long-term care? It’s imperative to factor these into your retirement, too.

27:40 Did you know there is an investment vehicle known as a Qualified Longevity Annuity Contract that allows you to defer your standard retirement account draws until later in life? These can help support end-of-life needs.

29:11 As we wrap up this episode, we’re leaving off on a positive note with these inspiring success client stories.


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Links/Resources Mentioned in this Episode:

“One-size-fits-all” won’t fit you here! The Del Monte Group team understands that everyone’s financial goals are unique. That’s why we always provide customized advice. No matter where you are in life, you can depend on our proven expertise to provide financial planning support for long-term success. Ready to get started? Schedule a meeting with Richard or Angela in our Alamo, CA based office today or we can meet via Zoom! >> You can select a date and time that works for you via our calendar, call us at 925.736.6410, or send an email to We can’t wait to help you!



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