The problem with traditional retirement planning and even personal finance oriented websites (including this one) is that they all focus a lot on the number, that is, our retirement stash that we aspire to get to. For those having a set target, this laser-like focus on ‘hitting’ that number can turn into an obsession. For those with say, a $1 million target, reaching a precise figure of say, $933,240, may still feel like they fell short. That is far from the truth. The number doesn’t define who you are or isn’t even a gauge of what you have accomplished in life.
The huge financial services industry and the much smaller community of Financial Independence and Retire Early (FIRE) bloggers differ on many fronts. Yet, we all agree on one principle – sustainable withdrawal and retirement success through simulation models. Of course, we all need to know our sustainable spending rate. But, as we saw earlier, focusing solely on the simulated probability of financial success only increases the relative probability of a non-financial event wrecking our plans. Today, we seek a new angle to one such non-financial risk factor that impacts your financial future.