Are You Following Outdated Financial Rules?

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Today’s Question:

When it comes to retirement, the rules that applied for your grandparents or parents aren’t necessarily the same for you. To find out which rules are outdated, we discuss some of the financial rules of thumb you may have heard in the past.

Click on the timestamps below to jump to specific topics. 

Confidence Corner

Similar to phones or technology, some ways of thinking or strategies become outdated. People do different things over time, so it’s important that we strategize accordingly. What sort of rules or concepts are outdated when it comes to financial planning?

On this episode of The Financial Answer, we dig into things like the four percent rule or the 10-5-3 rule. What do these numbers mean and do they still apply? How should your portfolio be diversified instead and what kind of retirement numbers should you be looking at?

When it comes to stocks and bonds, is there a set age you should move your investments from one to the other? Do you have to hit a million dollars to retire? Consider your goals instead of a general rule of thumb. Are you factoring in other streams of income or inflation? How much do you actually need in retirement?

Considering your own situation is key. Instead of getting caught up in all the outdated or overgeneralized rules of thumb when it comes to financial planning, meet with an advisor who can create a customized plan and coach you as you make different decisions related to your retirement.

Listen to the full episode or click on the timestamps to hear what Nathan thinks about these often applied rules of thumb.

[2:50] – What financial rules are outdated?

[3:22] – Is the 4 percent rule outdated? 

[6:20] – What is the 10-5-3 rule?

[7:45] – Should you move from stocks to bonds at a certain age?

[9:13] – The million dollar rule to retire. 

[13:48] – Do you need less in retirement than when you’re working?



A Point Of Wisdom:


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