Secure a Wealthier Retirement by Adhering to These Five Key Principles
Retirement planning is undergoing a significant transformation with the emergence of the Golden Rules. This innovative approach offers a more personalized, integrated strategy that focuses on individual financial objectives and asset allocations across all primary asset classes.
Unlike traditional retirement advice, which often relies on fixed withdrawal rules like the 4% rule, the Golden Rules utilize advanced analytical tools and novel financial products to optimize income and liquidity throughout retirement while reducing risk.
Emphasizing Financial Objectives
The Golden Rules emphasize three key financial objectives: lifetime income, liquid savings, and legacy, while also addressing market risks that retirees face. By creating personalized retirement plans based on detailed analysis and individual circumstances, the Golden Rules aim to increase retirement income by 50% to 75% and liquid savings by 250% in late retirement compared to conventional approaches like the 4% rule.
Diversifying and Adjusting Portfolios
The Golden Rules advocate for a broader range of asset classes to diversify and dynamically adjust the portfolio. This approach includes investments, annuities, and mortgages, and incorporates innovative products tailored to each stage of retirement, such as variable annuities with living benefit guarantees and payout annuities.
Leveraging Technology
The Golden Rules also leverage software-driven planning tools that factor in billions of scenarios to optimize outcomes. This technology, developed by the team at Go2Income, enables the creation of personalized plans that are designed to support higher, sustainable income and better cash availability without increasing exposure to major financial risks.
Risk Reduction
In addition to increasing income and liquid savings, the Golden Rules focus strongly on risk reduction. By addressing market risks that retirees face, such as sequence of returns risk, the Golden Rules design withdrawal strategies and asset allocations that protect retirement assets.
By following these Golden Rules, individuals approaching or in retirement can significantly increase their income and liquid savings while mitigating key risks that traditional advice may not fully address.
The Golden Rules of Retirement Planning: A Summary
| Aspect | Traditional Retirement Planning | Golden Rules of Retirement Planning | |--------------------------|--------------------------------------------------|----------------------------------------------------------------| | Withdrawal strategy | Fixed rule-based (e.g., 4% rule) | Flexible, personalized withdrawal strategies | | Asset allocation | Often limited or static | Uses all primary asset classes with dynamic adjustments | | Focus | Conservatism and preservation | Income maximization, liquidity growth, and risk reduction | | Use of products | Basic investment accounts | Innovative financial products tailored to life stage | | Planning approach | Generalized guidelines | Software-driven personalized plans based on extensive simulations|
For those interested in learning more about the Golden Rules and how they can be applied to build a retirement plan, visiting Go2Income's website is recommended. It's always a good idea to check an advisor's records with the SEC or FINRA before making any investment decisions.
In the Golden Rules of Retirement Planning, the focus is shifted from traditional fixed withdrawal strategies like the 4% rule to flexible, personalized withdrawal strategies that aim to increase retirement income by 50% to 75% and liquid savings by 250%. (Emphasizing Financial Objectives)
This transformation in retirement planning also includes a broader range of asset classes for portfolio diversification and dynamic adjustments, such as investments, annuities, and mortgages, utilizing innovative products tailored to each stage of retirement. (Diversifying and Adjusting Portfolios)
