Research into dynamic retirement income planning has often focused on setting “guardrails” based on portfolio withdrawal rates. However, client scenarios often do not lend themselves to simple withdrawal-rate-based planning. When realistic changes in expected income needs and non-portfolio income sources like Social Security are included in the picture, we need a more powerful approach to income guardrails. Guardrails based on total, holistic income risk provide a more generalizable and intuitive way to plan for dynamic retirement income.
