Most retirement plans start with the same question: How much can I safely spend each year without running out of money?
A common starting point is the 4% rule - the idea that you can withdrawal about 4% of your portfolio in your first year of retirement, adjusting for inflation thereafter, without outliving your savings. It's a helpful guideline - but like all rules of thumb, it doesn't tell the whole story.
Because there's another risk we need to plan for: The risk of dying with too much money.
If you spend too little - out of fear, uncertainty, or habit - you could end up living more conservatively than you need to. You miss out on opportunities to travel, enjoy experiences, help your family, or support causes you care about during your lifetime. And you might leave behind more assets than you intended - with potential tax consequences or distribution issues.
That's why good planning doesn't just set a withdrawal rate - it monitors and adjusts it over time based on:
- Market performance
- Your spending habits
- Health and lifestyle changes
- Legacy goals and charitable interests
The goal isn't simply to "not run out of money." The real goal is to make your money work for you - to support the life you want today, tomorrow, and for the people and causes that matter most.
If you're ready for a conversation about living well - not just saving well - I'd love to help.
Schedule a Complimentary Consultation by calling me at 785-313-4752.
Talk soon.
Tony