Protection for You, Your Family,
and Your Future Together
Climbing Mount Everest is one of the world’s greatest feats—yet most fatalities happen on the descent. In a study of 192 climber deaths between 1921 and 2006, a surprising 56% occurred while descending. Similarly, building wealth may feel like an ascent—exciting, focused, and full of momentum. But the real test comes during the descent: spending your nest egg safely without running out of oxygen.
The Comfort of the 4% Rule
For decades, retirees have clung to the 4% rule—a simple guideline that promises a safe withdrawal rate from your portfolio. Take 4% in the first year, adjust for inflation, and your resources should last 30 years.
Why Simplicity Can Mislead
But simplicity comes with a cost: it overlooks market swings, healthcare cost inflation, longevity, tax complexities, and IRS rules like IRMAA that can quietly hike your Medicare premiums. In other words, 4% isn’t a one-size-fits-all solution.
What if You Could Withdraw 8–10%?
Sounds bold—maybe even reckless. But with the right mix of strategies,
an 8–10% withdrawal rate can be surprisingly sustainable:
- Protect against market downturns early in retirement (sequence risk) using bucketed reserves or dynamic withdrawal methods.
- Base income income solidity through annuities or bonds to cover essentials.
- Tax-smart distributions (e.g. Roth IRAs, timing RMDs) to minimize IRMAA and taxes.
- Adaptive spending—spend more when markets behave, pull back when they don’t.
Retirement: More Complex Than You Think
Retirement isn’t just about saving. The distribution phase is where most plans falter—it’s like descending Everest: energy is gone, risks are higher, and mistakes can be costly. That’s why considerations like tax effects, Medicare IRMAA surcharges, and sequence-of-returns can’t be ignored.
Professional Guidance to Navigate the Descent
Accumulation may be intuitive—but spending—and sustaining—your retirement income merits a deeper, expert approach. If you’re between 55 and 70, let’s talk about building a plan that lets you withdraw more safely, without running out.