Core Viewpoint - The traditional "4% rule" for retirement spending is considered inadequate by its creator, leading to the introduction of a new strategy called the Annually Recalculated Virtual Annuity (ARVA) method by Stefan Sharkansky, which offers a safer and more flexible approach to retirement income [1][3]. Group 1: ARVA Method Overview - The ARVA method recommends a retirement portfolio consisting of only two asset types: a ladder of Treasury Inflation-Protected Securities (TIPS) and a low-cost stock market index fund [3]. - TIPS provide guaranteed income as their interest payments and principal are adjusted for inflation, preserving purchasing power [3]. - A 30-year TIPS ladder can yield 4.5% of the initial investment annually, adjusted for inflation, making it a superior option compared to the 4% rule [4]. Group 2: Retirement Income Structure - The combination of a TIPS ladder and a stock fund creates a "salary plus bonus" income structure for retirees [5]. - The secure base "salary" includes Social Security, pensions, rental income, and guaranteed income from the TIPS ladder, while any excess funds should be allocated to the stock index fund [6]. - The stock index fund serves as the "bonus" income, which varies with market performance, ensuring retirees receive a bonus every year regardless of market conditions [7].