Select Page

👉Get New Post Via Email👂Get This Episode On iTunes

Defying Age: An Unconventional Retirement Investment Strategy

Are you following the age-old rule of becoming more conservative with your investments as you get older? What if there’s a different approach that defies the norm? Join Nestor Vargas, a certified financial planner, as he challenges traditional investing principles and introduces a strategy that empowers you to pave your own path, regardless of age. But beware, it may cost you millions if you don’t listen carefully. Will you take charge of your financial destiny and maximize your experiences during retirement? Or will you risk outliving your money? Find out in this episode of Green Cards to Greenbacks podcast.

In this episode, you will be able to:

  • Uncover groundbreaking investment principles for retirees.
  • Grasp the effectiveness of the War Chest strategy in risk reduction.
  • Enhance your retirement living while ensuring financial longevity.
  • Adapt investment techniques to suit your unique portfolio demands.

Imagine building a financial fortress, a war chest, if you will, that empowers you to weather any storm that comes your way.

The resources mentioned in this episode are:

  • Reach out to Nestor Vargas for further retirement investment strategy discussions and questions at
  • Visit the website for show notes and links to any resources discussed in the episode.
  • Consider using the War Chest methodology to maximize growth and minimize risk in your retirement portfolio.
  • Understand your specific portfolio needs to come up with your own stock to bond ratio or asset allocation, instead of relying on outdated rules of thumb.
  • Don’t be too conservative with your portfolio, as the true risk in retirement is not maximizing experiences or outliving your money due to lack of growth.


Understanding one’s financial goals, risk tolerance, and individual circumstances is crucial in making well-informed decisions about retirement planning. Eschewing generalized investment principles in favor of a more personalized approach allows retirees to effectively address their unique financial situation, maximizing their ability to enjoy life to its fullest. In this episode, Nestor Vargas guides listeners through the importance of challenging conventional wisdom in investments and identifies alternative strategies such as the War Chest methodology. His insights encourage independent thinking, urging individuals to consider their long-term objectives and embrace a proactive attitude towards their financial destiny.

The War Chest Methodology

To address the limitations of the traditional investment approach, Vargas introduces the War Chest methodology. This technique involves setting aside a certain portion of the investment funds in bonds and cash, reducing the risk of selling stocks during unfavorable market conditions. The goal is to customize the allocation of stocks and bonds based on individual income requirements, thus minimizing risk while maximizing potential growth. In the podcast, Nestor Vargas discusses a case study of a 54-year-old client with $2 million in savings. Employing the War Chest methodology, this individual was able to drastically increase their earning potential compared to the traditional approach. The personalized allocation of stocks and bonds proposed by Vargas enables a more effective financial strategy that caters to the client’s specific income needs and priorities, resulting in a more fulfilling retirement experience.

Volatility vs. True Risk

It’s common for investors to associate volatility with risk, especially when it comes to retirement planning. However, Vargas challenges this notion by stating that the true risk in retirement is not volatility, but rather the potential to miss out on life experiences or outlive one’s savings. Recognizing the difference between the two can significantly impact retirement planning and overall enjoyment of those golden years. Nestor Vargas encourages listeners to think beyond equity market volatility and consider the more meaningful long-term risks of failing to maximize retirement experiences or running out of money. By focusing on these real-world concerns and adopting a more tailored investment strategy such as the War Chest methodology, retirees stand a better chance of having a fulfilling retirement while mitigating financial risks.


Other episodes you’ll enjoy:

Retirement Resilience: Overcoming Financial Crises and Government Shutdowns

The Truth About Long-Term Care: Planning for a Secure Retirement

Mastering Retirement Projections: Explore the Power of Monte Carlo Simulations

Connect with me:

Timestamped summary of this episode:

00:00:00 – Introduction,
The host, Nestor Vargas, introduces himself as a certified financial planner and experienced Latino financial advisor who will cover all aspects of retirement planning, including investment options, tax considerations, Social Security, healthcare planning, and retirement planning strategy. He also mentions that he will occasionally discuss retirement abroad and exploring different destinations and lifestyles that can be affordable and enjoyable during retirement.

00:01:30 – Defying the Norm,
Nestor challenges the age-old rule that suggests investors should become more conservative as they get older. He discusses the rule of thumb that suggests investors take 100 and subtract their age to come up with their asset allocation and how it can cost them millions of dollars. He recommends an unconventional approach that involves creating a war chest, a pot of money invested in bonds and cash, to reduce the risk of having to sell stocks in a portfolio at the wrong time.

00:07:22 – The War Chest Methodology,
Nestor explains how to create a war chest by understanding how much money is needed to withdraw from a portfolio on a monthly basis to supplement other sources of income and afford a lifestyle. He gives an example of a client who only needs to withdraw $5,000 per month from their portfolio in retirement and how 10% of their portfolio in stocks and bonds is sufficient. He emphasizes that the true risk in retirement is not maximizing experiences during golden years and outliving money.

00:09:52 – Volatility vs. True Risk,
Nestor addresses concerns about stock volatility and explains that it is not