As one who frequently advocates developing a spending budget that best meets your (or if you are a financial advisor, your client’s) needs, I was pleasantly surprised to read the August 29 article by Kenn Tacchino entitled, “Are your retirement drawdown strategies meeting your needs?”
I generally agreed with Mr. Tacchino when he said,
“Rather than just accept the financial planning decumulation strategies as gospel, you will need to customize them to your specific goals (e.g. your desire to travel or take up a new hobby), your individual need to protect against unwanted retirement shocks (e.g., the need to pay for extraordinary health care), and your unique level of tolerance for risk.”
“Your chosen strategy needs to be personalized so that it meets your idea of the proper balance between unnecessarily restricting current consumption and hoarding assets for future needs.”
Of course I think it is easier and more effective to use the Actuarial Approach set forth in this website rather than customize some or all of the decumulation strategies discussed by Mr. Tacchino. See my post of June 7 of this year for an example.