Episode 246: Why 100% Bonds May Not Be the Safest Retirement Portfolio

In a live Retire With Style Q&A, Wade Pfau and Alex Murguia answer retirement planning questions covering Social Security survivor benefits for divorced spouses, home equity as a retirement buffer, sequence-of-returns risk, conservative portfolio construction, Roth conversions and annuity planning. They discuss HECM reverse mortgages versus HELOCs, rising equity glide paths, and how Social Security, QLACs, TIPS and diversification can address longevity and inflation risks. They also address why even highly conservative retirees may hold modest stock exposure and why short-term market timing should not dictate Roth conversion decisions.

1. A divorced spouse may qualify for an ex-spouse survivor benefit if the marriage lasted at least 10 years and remarriage occurred after age 60.
2. A HECM reverse mortgage line of credit is described as a buffer asset designed to remain available during market stress, unlike a HELOC that may be frozen or reduced.
3. Rising equity glide paths are presented as a way to manage sequence-of-returns risk, with implementation varying by retirement income style.
4. Roth conversion decisions generally should not be driven by fear of an immediate market decline, and higher-growth assets such as stocks may be particularly valuable in Roth accounts from an asset-location perspective.