When you think about retirement planning, the process of preparing financially for life after work by building sustainable income, managing risks, and aligning investments with long-term goals. Also known as retirement income planning, it's not just about how much you save—it's about how wisely you use that money when you stop working. For decades, the 4% rule, a guideline suggesting retirees can withdraw 4% of their portfolio annually without running out of money gave people a simple number to aim for. But today’s markets—high inflation, low bond yields, and volatile stocks—make that rule riskier than ever. You can’t just set it and forget it. Retirement planning now needs guardrails: adjusting withdrawals based on market performance, using annuities for guaranteed income, and knowing when to hold back.
That’s where an investment policy statement, a written plan that defines your goals, risk tolerance, and rules for buying and selling assets becomes essential. It’s not paperwork for financial advisors—it’s your personal contract with your future self. It stops you from panic-selling when the market drops or chasing hot stocks in retirement. It keeps your portfolio aligned with your real needs: safety, income, and longevity. And it’s the foundation for decisions like whether to use hedged bond funds, international bond funds that protect against currency swings or stick with domestic assets. It also helps you choose between high-yield savings for short-term cash needs and long-term growth investments.
Retirement isn’t a single event—it’s a multi-decade journey with different phases. You need money for emergencies, for travel, for healthcare, and for leaving a legacy. That’s why smart planners spread their assets across time horizons: some funds for the next 1–3 years, others for 5–10, and the rest for 20+ years. Your emergency fund shouldn’t be in stocks. Your income stream shouldn’t rely on one stock or one country. And your plan shouldn’t ignore taxes—selling the right ETF shares at the right time can save you thousands. The posts below cover exactly this: how to adapt the 4% rule for 2025, how to build an investment policy statement that actually works, how to choose between hedged and unhedged bonds, and how to keep your money safe without sacrificing growth. No fluff. No theory. Just what you need to make your retirement last.
The bucket strategy divides retirement savings into three time-based accounts to protect against market crashes and ensure steady income. Learn how to set it up, avoid common mistakes, and make it work for your retirement.
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