From Rules of Thumb to Your Personalized Retirement Plan

Scott Sullivan |
Categories
Retirement Planning

From Rules of Thumb to Your Personalized Retirement Plan

 

Why Generic Rules Fall Short

For decades, simple retirement planning guidelines like the 4% withdrawal rule have dominated financial advice: withdraw 4% of your initial savings each year (adjusted for inflation) to make your money last. While straightforward, these rules often fail in real life because they:

  • Separate saving from spending: Treating your working years and retirement years as unrelated phases misses the bigger financial picture.
     

  • Ignore market volatility: A fixed withdrawal rate can be risky if markets underperform, especially when retirement begins during a downturn.
     
  • Rely on outdated data: The 4% rule is based on historical U.S. market returns that may not reflect today’s economic environment.
     

  • Lack personalization: They don’t account for individual goals, risk tolerance, health, lifestyle, or unique spending patterns.

The Shift: Integrated, Personalized Retirement Planning

A personalized retirement plan takes a life-cycle approach, connecting how much you save now with how you spend in retirement. This integrated strategy builds confidence and resilience against financial surprises.

Key Elements of a Personalized Retirement Plan

  1. Integrated Financial Planning
     We consider your entire financial life—from your first paycheck to your final withdrawal—to create a cohesive, adaptable strategy.
     
  2. Risk Management for Peace of Mind
     A holistic plan addresses key risks:
     
    • Longevity Risk: The possibility of outliving your savings.
       
    • Sequence of Returns Risk: Poor investment returns early in retirement.
       
    • Inflation Risk: Erosion of purchasing power over time.
       
    • Unexpected Expenses: Healthcare or other unforeseen costs.
       
  3. Diverse Income Sources
     Your plan can include Social Security, pensions, annuities, investments, and other income options to provide stability and flexibility.
     
  4. Personalized Style (RISA® Profile)
     Using the Retirement Income Style Awareness (RISA®) Matrix, we align your plan with your personal preferences—whether you favor safety-first, probability-based strategies, commitment, or flexibility.
     
  5. Dynamic Spending Strategies
     Instead of a rigid withdrawal percentage, your plan can adjust spending as markets and personal circumstances evolve, reducing anxiety and increasing confidence.

Why Personalization Matters Now

With today’s changing interest rates, market conditions, and longer lifespans, relying on generic rules can put your retirement security at risk. A personalized, integrated plan gives you:

  • Greater financial confidence
     

  • The flexibility to adapt to life changes
     

  • Protection from market surprises

Ready to Build Your Unique Retirement Plan?

Start early. Save consistently. Plan with confidence.

Schedule your 15-minute Retirement Fit Call today to explore how a personalized approach can help you retire with peace of mind.

Click here to schedule your 15-minute Retirement Fit Call.

Your retirement is unique. Your plan should be too.

To your confident retirement,