Retirees today are facing financial pressures unlike those experienced by earlier generations, characterized by inflation, rising healthcare costs, and elevated prices for essentials. Many seniors, particularly over 65, are still burdened with mortgages, which exacerbate financial strain. Traditional retirement withdrawal strategies, such as the 4% rule, fail to accommodate these fixed costs. Financial advisors now advocate for a more conservative approach to withdrawals and emphasize personalized spending plans to help manage expenses effectively and enhance the longevity of retirement savings.
"Retirees with a mortgage should consider a more conservative withdrawal rate, perhaps around 3%, to ensure they can cover their mortgage payments and other essential expenses without depleting their savings too quickly."
"Instead of suggesting the 4% rule, Falcon works with his clients to create a target rate of return, update their plan regularly, and track to see that they're spending less than their average return."
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