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However, is this really the best way to approach your retirement?
Stroup and otherexperts offered some thoughts.
Factors like healthcare costs, life expectancy and individual spending habits can vary greatly from person to person.
Moriarty added, People tend to spend more in the first year of retirement.
Or they may delay retirement withdrawals and work part time.
Or they may take more and delay taking Social Security.
This defies logic as we may need more money if we need care, she said.
And keep your investments diverse but more conservative each year, she added.
This is partly because it was created during a time when market returns and bond yields were significantly higher.
Try Alternative Savings Strategies
So, instead consider some alternative strategies like these.
For example, if the market is doing well, retirees can withdraw more.
However, if the market is underperforming, they would be forced to withdraw less.
Look Into the Guardrail Strategy
This approach adjusts withdrawals based on portfolio performance, Mains shared.
Its flexible and accounts for real-time conditions, unlike the rigid 4% rule.
Conversely, those prioritizing stability might withdraw less initially and let their investments grow longer.
Life circumstances and market conditions change, so what works at 65 may not work at 75.
Flexibility is key view retirement as a dynamic journey rather than a static phase.
A well-rounded plan goes beyond money to ensure a fulfilling life.
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