When it comes to retirement withdrawal strategies, the landscape is cluttered with options. Fixed-dollar withdrawals, the 4% rule, bucket strategies, and countless other variations claim to be the best retirement withdrawal strategy. But what if you had a dynamic, risk-based approach that actually adjusted to real-life circumstances?
That’s exactly what Derek Tharp, Ph.D., CFP®, recently highlighted in his review of our methodology at Brindle & Bay. And if you’re unfamiliar with Tharp, he’s not just another financial expert — he’s a respected researcher, an assistant professor of finance at the University of Southern Maine, and the lead researcher at Kitces.com, one of the most trusted sources for retirement financial planning insights. When he weighs in on a strategy, it matters.
Check out his full video here, or read our summary of it below.
Why Traditional Retirement Withdrawal Strategies Fall Short
Derek Tharp echoes what many retirees and financial planners have struggled with:
-The 4% Rule is outdated: It’s rigid, ultra-conservative, and often causes retirees to underspend in retirement, leaving them with more money than they needed at the end of their life.
-Fixed-dollar withdrawals lack flexibility: They don’t adjust for market changes or life circumstances, meaning retirees could either run out of money or be far too cautious.
-The bucket strategy is psychologically helpful but impractical: Managing multiple “buckets” of money sounds great in theory but becomes a logistical headache when it comes to tax-efficient withdrawals and rebalancing.
The Best Retirement Withdrawal Strategy? Risk-Based Guardrails
So, what does work? Risk-based guardrails.
Tharp notes that Brindle & Bay’s approach to retirement spending strategies is superior because it:
-Adjusts dynamically: Rather than rigid rules, it monitors your portfolio and spending in real-time, allowing for safe, calculated adjustments.
-Prevents unnecessary frugality: Unlike the 4%rule retirement approach, risk-based guardrails tell you when it’s safe to spend more, so you don’t unnecessarily sacrifice your lifestyle.
-Accounts for life changes: Whether you're delaying Social Security, making a large purchase (hello, RV life!), or planning tax-efficient retirement withdrawals, this strategy adapts.
-Reduces stress: Instead of a “pass/fail” retirement plan, this method gives retirees clarity about when they need to adjust — and by how much.
Derek Tharp’s Verdict? Brindle & Bay Gets It Right
In his review, Tharp emphasizes that Brindle & Bay’s risk-based guardrails strategy aligns with how people actually spend in retirement, versus how a theoretical model says they should.
If you’re looking for a retirement income planning strategy that helps you maximize retirement savings withdrawals without unnecessary restrictions, it’s time to rethink your approach. This post just scratches the surface.
If you’re serious about maximizing your retirement income, avoiding costly mistakes, and making the most of risk-based guardrails, we’ve got something even better for you: our in-depth whitepaper. This document goes many levels deeper into:
-How risk-based guardrails compare to traditional withdrawal strategies
-The biggest retirement spending mistakes (and how to avoid them)
-The step-by-step guide to implementing a flexible, tax-efficient withdrawal plan
Don’t leave your retirement strategy to chance. Enter your email address here to get instant access to the full whitepaper and start planning smarter today!
