Rethinking Retirement: Beyond the 4% Rule
When you picture retirement, what comes to mind? Maybe it’s traveling, spending more time with family, or finally having the freedom to focus on hobbies and passions. For some, it’s sitting on the porch with a morning cup of coffee and no rush to start the day. For others, it’s volunteering, mentoring, or even starting a small business they’ve always dreamed about.
Whatever your vision looks like, one question matters most: Where will your retirement income come from?
For most people, the answer involves a mix of qualified retirement plans, Social Security, personal savings, and investments. But understanding how these sources work together—and whether they’ll be enough to support the lifestyle you want—is where the real planning begins.
We are finding that most young people when they first get married and start their family, are just trying to get by and haven't thought of saving for retirement. Now is the time to sit down and start your retirement plan and this is where we can help.
Most people retire around the age of 65. It is important to be able to retire when you desire to and yet, have a purposeful plan in place on what your retirement will look like.
Step 1: Estimate Your Needs
Planning starts with knowing how much you’ll need each year in retirement. Think beyond bills and focus on the lifestyle you want to create.
✔️ Include daily living expenses
✔️ Factor in healthcare and insurance costs
✔️ Account for inflation over time
✔️ Set aside a cushion for unexpected expenses
Example: One couple always dreamed of traveling in retirement. After reviewing their numbers, they realized their savings alone wouldn’t comfortably cover both everyday expenses and travel. By rebalancing their portfolio and setting up a flexible withdrawal strategy, they found a way to pursue their dream—without sacrificing financial stability.
Step 2: Rethink the 4% Rule
For years, the “4% rule” was a common retirement strategy. Withdraw 4% of your portfolio each year and, in theory, your money would last 30 years. But today’s world looks different:
People are living longer.
Market conditions are less predictable.
Costs like healthcare and housing keep rising.
The takeaway? Old formulas don’t always fit today’s realities. A more flexible, personalized withdrawal strategy is often a smarter approach.
Step 3: Build with Purpose
Your retirement plan should reflect your life and goals. That means building a portfolio that balances growth, stability, and adaptability.
✔️ Diversify your investments
✔️ Adjust strategies as markets and needs change
✔️ Revisit your plan regularly—not just once
✔️ Align financial decisions with personal goals
The Big Picture
Retirement isn’t about following someone else’s formula—it’s about creating a plan that works for you. Whether your dream is traveling, moving closer to loved ones, or simply enjoying unhurried mornings, thoughtful planning today can help you turn those dreams into reality.
👉 Give us a call! @LeBaron Financial Group Office: 951-695-9535 Steve LeBaron: steve@lebaroninc.com
If you haven’t reviewed your retirement plan recently, take time to revisit your goals and income sources. A well-designed, flexible strategy can help you pursue the retirement you’ve always envisioned!