There are some simple rules of thumb, such as saving 10 times your income before retirement age, but experts recommend using a retirement calculator to get a more accurate picture of your retirement number.

Nevertheless, the old rules may no longer apply.

“There is not necessarily a one-size-fits-all solution,” said Christopher Schleiner, registered financial planner and chief operating officer of Mason Investment Advisory Services, headquartered in Reston, Virginia, who is ranked on CNBC’s 2021 100 list 13th.

“Expenditure is always the most important variable,” he told retirees. “The perfect investment solution cannot overcome people who are over budget.”

In addition, your health care costs are also likely to be higher than current expectations. Especially if you retire before you are eligible for Medicare at age 65.

For many years, financial advisors have also relied on the so-called 4% retirement income rule: retirees can withdraw 4% of their total investment portfolio each year to maintain their living, while maintaining a large enough account balance for 30 years.

However, with so much economic uncertainty, the longer retirement period also puts this standard to the test.

Matthew Young, President and CEO of Richard C. Young & Co. in Naples, Florida, ranked 5th in CNBC’s FA 100. He said: “In a 35-year time frame, interest rates at historically low levels may increase by 4 % Challenging.” list. “I told the client that you might want to consider 3%, just in case.

“In terms of returns, we just don’t know what kind of environment we will have in the next 15 years,” Yang said.

Even the typical view of asset allocation has changed.

Steven Check, President of Check Capital Management, Costa Mesa, California, ranked 4th in the CNBC FA 100 list, recommends sticking with it Allocate 80% of stocks to 65-year-old retirees—even S&P 500 index funds. So far this year, the S&P 500 has risen by 16%, and it has risen by approximately 30% in the past 12 months.

“This is higher than the recommended value you usually see, but historically, it will work well, and I think it is more necessary for interest rates to be so low,” Check said of a company that focuses on stocks and equity funds. The investment portfolio is dominated by bonds and cash instead of the more traditional retirement investment portfolio.

“Due to stock valuations and bond yields, the expected returns will not be as good as before,” he added. “Models based on past returns cannot predict forward.”

Check also suggests adopting the “two barrels” approach, using approximately five years of expenditures in stable and liquid assets, such as money market funds and short-term bonds, and investing the rest in stocks to achieve long-term growth.

He said that even if you spend 4% of your assets in the first year (and increase it by 3% every year to deal with inflation), your money will last for 35 years.

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