Outdated Retirement Advice To Throw Out the Window

Group 1 - The article critiques outdated retirement rules, emphasizing that they may not provide sound financial advice in today's context [1] - The Rule of 100, which suggests subtracting one's age from 100 to determine stock allocation, is deemed outdated due to longer life expectancies and lower bond yields [2][3] - The 60/40 retirement portfolio may be too conservative, as evidenced by Warren Buffett's strategy of allocating 90% to equities and only 10% to bonds, which outperformed the traditional portfolio [4] Group 2 - Inflation is highlighted as a significant threat to retirement savings, more so than market volatility, necessitating investments that outpace inflation [5] - The 4% Rule, which was popularized in the 1990s for retirement withdrawals, has been challenged, with suggestions that a 5% withdrawal rate may be feasible under certain conditions [6] - The advice to pay off all debt before retirement is questioned, particularly regarding mortgages, as strategic use of debt can enhance income generation [7]