Rethinking Retirement Planning
It seems like retirement planning always comes down to a) “how much do I need to save for retirement?” and b) “how should I take from my savings so that I won’t run out of money before I die?” On the surface, a relatively simple mathematical exercise in which popular formulae are often used to provide the basic numbers. For example, many Financial Advisors will counsel you to have about ten times your annual salary saved for retirement and, upon retirement, start withdrawing from your nest egg using the popular “4% rule.” Problem is, everyone’s situation is different, so a one-size-fits-all approach is usually not the best strategy to follow.
Some advisors are now taking a different approach to retirement planning. Instead of fixating solely on the dollar numbers, they are focusing on how their client can best live their most desirable life with the money they have. That doesn’t take away the need to make sure there’s enough money to last a retirement lifetime, but it heightens awareness that the goal shouldn’t be to simply restrict spending and hoard money, but rather be one of using one’s resources to live their retirement life to the fullest. This WealthManagement.com article by David Stone, Founder and CEO of RetireOne, explains.