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It's time to bring your old plan forward by moving away from the rules of yesterday, such as the 4% withdrawal rate and the 60/40 portfolio, to an adaptable, tax-diversified strategy focused on reliable income and longevity.
By
Christopher C. Giambrone, CFP®, AIF®
published
31 January 2026
in Features
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As a financial planner, I see a familiar scene play out often. A new client settles into a chair, opens a thick, leather-bound binder and places it proudly on our conference room table.
It's their "master plan." It's been carefully followed for years — and it shows commitment and discipline.
But as we start paging through it together, it usually becomes clear that we aren't just reviewing a plan. We're revisiting a moment in time.
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Sign upThat doesn't mean the plan was bad. In fact, many of these strategies were thoughtful, well-constructed and perfectly appropriate when they were created. The challenge is that the world they were designed for no longer exists.
The financial reality of 2026 looks very different from 2006. Back then, the iPhone hadn't arrived, "social media" meant MySpace, and the Great Recession was still unimaginable.
Just as technology has evolved, retirement planning has had to evolve with it.
The question isn't whether your plan was once solid — it's whether it has kept pace.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Rethinking the 'safe' withdrawal rate
For years, the 4% rule was a comforting benchmark. Withdraw 4% in year one, adjust for inflation thereafter, and the odds suggested your money would last 30 years.
Today, we approach that guideline with more flexibility. People are living longer, retirements are lasting longer, and market volatility — especially early in retirement — can have an outsized impact on long-term outcomes.
Rather than relying on a single fixed number, many plans now incorporate guardrails. In strong market years, spending can increase modestly. In weaker years, we may pause discretionary expenses.
The goal isn't restriction — it's resilience. Security today often comes from adaptability, not rigidity.
From tax deferral to tax strategy
In the mid-2000s, deferring taxes was often the default approach. Traditional IRAs and 401(k)s offered immediate tax benefits, and many retirees expected to be in a lower tax bracket later.
Fast-forward to today, and taxes deserve a more nuanced conversation. With changing tax laws and rising government debt, flexibility has become more valuable than ever.
Instead of relying on a single tax bucket, modern plans often focus on building a tax-diversified structure — balancing taxable, tax-deferred and tax-free accounts. This allows retirees to manage income more intentionally over time, rather than reacting to tax surprises.
It's less about predicting the future — and more about staying prepared for it.
The evolution of the 60/40 portfolio
For decades, the 60/40 stock-and-bond portfolio was the foundation of retirement planning. Bonds provided income and stability, often moving differently from stocks.
Today, markets behave differently. Stocks and bonds don't always offset each other the way they once did, and inflation has re-entered the conversation in a meaningful way.
While the 60/40 framework still has relevance, many plans now emphasize income sources rather than simple asset ratios — combining Social Security, dividend growth, cash reserves and other tools to create stability through market cycles.
The focus has shifted from balance alone to sustainability.
Health care: Now a central planning pillar
Health care was once treated as just another line item. Today, it's one of the most dynamic — and potentially impactful — parts of a retirement plan.
Rising medical costs, long-term care considerations and tools like health savings accounts have changed how we plan. HSAs, when used strategically, can serve as a powerful resource for future medical expenses.
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Modern long-term care solutions also look very different than the "use it or lose it" policies of the past.
Planning for health care today is less about assumptions and more about intentional preparation.
Swipe to scroll horizontallyTwo eras, two approachesHeader Cell - Column 0Earlier Planning Focus
Today’s Planning Focus
Goal
Accumulating assets
Creating reliable income
Inflation
Secondary concern
Core portfolio risk
Longevity
Planning to mid-80s
Planning well into the 90s
Strategy
Set it and forget it
Ongoing adjustments
Legacy
Whatever remains
Intentional, tax-aware planning
Is it time for a refresh?
If your current review conversations don't include topics like tax diversification, sequence of returns risk or Medicare income thresholds, your plan may simply be overdue for an update — not because it failed, but because time moved on.
Retirement isn't a single moment — it's a multidecade journey. The strategies that helped you accumulate wealth are often not the same ones that help you live confidently on it.
That old binder doesn't need to be discarded. It just needs to be brought forward.
Your future self will thank you for it.
Related Content
- How to Measure the Health of Your Retirement Plan
- How Do You Build Wealth? Seven Critical Steps
- Five Common Retirement Mistakes and How to Avoid Them
- Five Overlooked Factors When Planning for Retirement
- Three Essential Strategies for Managing Your Inheritance
Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is no guarantee of future results. Talk to your financial advisor before making any investing decisions.
DisclaimerThis article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
TOPICS Adviser Intel Get Kiplinger Today newsletter — freeContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.
Christopher C. Giambrone, CFP®, AIF®Co-founder, CG Capital™Chris Giambrone is a co-founder of CG Capital™, a boutique wealth management firm based in New Hartford, N.Y. He is a CERTIFIED FINANCIAL PLANNER™ and Accredited Investment Fiduciary® (AIF®). Chris has also earned a Certificate in Retirement Planning from the Wharton School of Finance at the University of Pennsylvania.
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