FinanceSwami Ironclad Retirement Planning Framework: A Step-by-Step System

Introduction: A Retirement Planning Framework That Protects Your Future

If you’ve heard the advice that you only need 70% of your current income in retirement, let me be direct with you: that guidance could leave you financially vulnerable in your 70s and 80s.

Most retirement planning frameworks tell you to save for 25 years, withdraw 4% annually, and assume your expenses will drop by 30% when you stop working. It sounds reasonable. It’s what you’ll read in most personal finance books and hear from many financial advisors.

But here’s what I’ve learned from watching real people retire and live through their retirement years: conventional retirement planning advice is built on best-case scenarios that rarely play out in real life.

When healthcare costs spike, when your roof needs replacing at 72, when inflation eats away at your purchasing power over 30 years, when you want to help a struggling adult child or enjoy the retirement you worked decades to reach—that’s when the cracks in traditional retirement planning frameworks show up.

I created the FinanceSwami Ironclad Retirement Planning Framework because I needed something that would actually hold up when life got messy. Not just in the good years, but when medical bills arrive, when unexpected expenses pile up, and when you’re too old to go back to work if something goes wrong.

What Makes This Retirement Planning Framework Different

The FinanceSwami Ironclad Retirement Planning Framework is built on five core principles that diverge sharply from conventional wisdom:

Principle 1: Plan for a 35-year retirement, not 25 years. People are living longer. Medical advances are extending lifespans. Running out of money at 85 is catastrophic. This retirement planning framework adds a 10-year buffer to standard models.

Principle 2: Assume you’ll need 150% of your current expenses, not 70%. Healthcare costs rise. Home maintenance doesn’t stop. Inflation compounds over decades. This framework rejects the dangerous myth that retirement is cheaper than working life.

Principle 3: Build a 12-month emergency fund before calculating retirement needs. Most retirement planning frameworks skip this step. That’s a mistake. Your rainy day fund prevents you from being forced to sell investments during market downturns.

Principle 4: Use FinanceSwami Ironclad 3.5% Planning Rule – 3.5% withdrawal rate, not 4%. The extra conservatism in this retirement planning framework accounts for longer lifespans, sequence-of-returns risk, and rising expenses in late retirement.

Principle 5: Prioritize capital preservation and sustainable income at 65+. Once you reach retirement age, the goal isn’t maximum returns—it’s stability, predictability, and peace of mind over potentially 35 years.

This isn’t theory. This isn’t what sounds good in a finance textbook. This is a retirement planning framework that accounts for reality, not best-case scenarios.

How This Retirement Planning Framework Fits Into Your Financial Journey

This framework is designed to be comprehensive and actionable on its own, but it’s also part of a larger system for building financial security.

If you’re completely new to retirement planning or want a broader understanding of why retirement planning matters, how Social Security works, what different retirement accounts exist, and how to think about retirement at different life stages, I recommend starting with my complete guide: Ultimate Guide to Retirement Planning.

That guide walks you through the fundamentals of retirement planning—what it is, why starting early matters, how to maximize employer matches, understanding IRAs and 401(k)s, and planning for healthcare in retirement.

Think of it this way:

• The Ultimate Guide to Retirement Planning is your comprehensive education on retirement planning—what it is, why it matters, and all your options
• The FinanceSwami Ironclad Retirement Planning Framework (what you’re reading now) is my specific, battle-tested system that you can implement immediately

You can absolutely start here with the Ironclad Retirement Planning Framework if you’re ready to jump straight into implementation. Everything you need is in this guide. But if you want the full context and want to understand the bigger picture of retirement planning first, the Ultimate Guide gives you that foundation.

What You’ll Learn in This Retirement Planning Framework

In this retirement planning framework, I’m going to walk you through five critical steps:

Step 1: Build a 12-Month Rainy Day Fund – Why this comes before retirement calculations and how it protects your investment strategy

Step 2: Plan for 150% of Current Expenses – Why the 70% rule is dangerously optimistic and how to calculate your real retirement spending needs

Step 3: Plan for a 35-Year Retirement Horizon – Why 25 years isn’t enough and how longer planning protects you from outliving your money

Step 4: Apply the FinanceSwami Ironclad 3.5% Planning Rule – How to calculate your retirement savings target using a more conservative withdrawal rate

Step 5: Focus on Capital Preservation at 65+ – Why the investment strategy changes once you reach retirement age

Each step includes detailed explanations written so clearly that someone with zero financial background can understand and implement them. This retirement planning framework gives you the exact thinking, calculations, and decision-making tools you need to build a retirement plan that withstands reality.

Who This Retirement Planning Framework Is For

This retirement planning framework is for you if:

• You’re tired of retirement advice that assumes everything will go perfectly
• You want a conservative approach that builds actual financial security for your later years
• You need clear, step-by-step guidance with real numbers and calculations
• You’re ready to commit to building a retirement plan that won’t fail when you’re 75
• You want to understand exactly how much you need to save and why

This retirement planning framework works whether you’re:

• In your 30s just starting to think about retirement
• In your 40s or 50s getting serious about retirement planning
• In your 60s approaching retirement and wanting to verify your plan
• Already retired and checking whether your plan is sustainable
• Earning $40,000 or $200,000 a year
• Single or planning for a couple’s retirement

The principles in this retirement planning framework are universal. The steps are clear. The math is transparent. And the results speak for themselves.

Understanding the Problem with Traditional Retirement Planning

Before I walk you through the FinanceSwami Ironclad Retirement Planning Framework, you need to understand why conventional retirement planning advice falls short.

The Myth of the 70% Rule

You’ve probably heard some version of this:

“You’ll need about 70% to 80% of your pre-retirement income to live comfortably in retirement.”

Financial advisors repeat it. Retirement calculators assume it. Personal finance books reference it as gospel.

The logic sounds reasonable on the surface. You’re no longer:

• Saving for retirement (that money is freed up)
• Commuting to work (gas, tolls, parking costs disappear)
• Paying payroll taxes on earned income
• Potentially paying a mortgage (if it’s paid off)

So naturally, the thinking goes, you need less money.

Here’s my honest take on this retirement planning framework assumption: it’s dangerously optimistic and sets people up for financial stress in their later years.

Yes, some expenses go down in retirement. But many critical expenses go up—often by more than people expect—and they tend to show up when you’re least able to absorb financial shocks or return to work.

What Actually Happens to Expenses in Retirement

Let me walk you through what I see happening with real people in real retirement situations.

Healthcare Costs Rise Significantly

As you age, you typically:

• Visit doctors more frequently
• Need more prescriptions and medications
• Face higher out-of-pocket costs for specialists
• Deal with dental work, vision care, and hearing aids
• Potentially need home healthcare or assisted living

Even with Medicare, you’re still paying:

• Monthly premiums for Part B and Part D
• Copays for doctor visits
• Deductibles before coverage kicks in
• Costs for services Medicare doesn’t cover

Fidelity estimates that a retired couple age 65 may need approximately $300,000 saved just for healthcare expenses over retirement. That’s not including long-term care.

According to the Centers for Medicare & Medicaid Services, healthcare spending grows faster than general inflation. While overall inflation might be 3% annually, healthcare costs often rise 5-6% per year or more.

What this means for your retirement planning framework: That $5,000 you spend annually on healthcare at 65 could easily become $10,000 or more by age 80.

Insurance Premiums Increase

Many retirees pay more over time for:

• Medicare supplemental plans (Medigap)
• Prescription drug coverage (Part D premiums)
• Long-term care insurance (if you choose to carry it)
• Home and auto insurance (rates don’t drop with age)

These costs rarely move down. They almost always move up.

Home and Vehicle Maintenance Doesn’t Stop

Your house and car age just like you do. In fact, by the time you reach retirement, many major home systems are approaching end-of-life.

Expect expenses like:

• Roof replacement ($8,000-$20,000)
• HVAC system replacement ($5,000-$15,000)
• Water heater replacement ($1,200-$3,500)
• Plumbing issues and repairs
• Appliance failures (refrigerator, washer, dryer, dishwasher)
• Vehicle repairs or replacement
• Driveway repaving
• Exterior painting
• Foundation or structural repairs

These are large, irregular expenses that don’t show up neatly in “average retirement budget” calculators. But they’re not optional. Your roof doesn’t care that you’re retired.

Reality check for your retirement planning framework: A single major home repair can cost $10,000-$30,000. You’ll likely face 3-5 of these over a 30-year retirement.

Service Costs Replace DIY Labor

Tasks you once handled yourself often become paid services later in life:

• Lawn care and landscaping
• Snow removal
• House cleaning
• Basic home repairs
• Gutter cleaning
• Window washing
• Tree trimming
• Heavy lifting and moving

At 45, you mow your own lawn. At 75, you probably pay someone $150-$300 per month to do it.

These costs are easy to underestimate when you’re building your retirement planning framework at 50, but they’re very real at 70.

Inflation Compounds Over Long Retirement Horizons

This is the one most people miss in their retirement planning framework.

Retirement is no longer a 10-15 year phase. Many people will spend 25-35 years in retirement. Over that time:

• Prices rise every single year
• Even “low” 3% inflation doubles prices in 24 years
• Healthcare inflation runs higher than general inflation
• Property taxes tend to rise over time
• Utility costs increase
• Food prices climb

Let me show you what this means in real numbers:

If you retire at 65 spending $50,000 per year, and inflation averages just 3% annually:

• At age 75: You’ll need $67,196 to maintain the same lifestyle
• At age 85: You’ll need $90,306 to maintain the same lifestyle
• At age 95: You’ll need $121,363 to maintain the same lifestyle

That’s the same lifestyle, the same quality of life—but the dollar amount nearly doubles over 25 years and more than doubles over 30 years.

Most retirement planning frameworks don’t adequately account for this compounding effect over 3+ decades.

Unexpected Family Needs Arise

Life doesn’t stop because you retire. Common situations I see that impact retirement spending:

• Helping an adult child through job loss, divorce, or financial hardship
• Supporting grandchildren (childcare, education expenses)
• Covering family medical emergencies
• Housing a family member temporarily
• Funeral and estate expenses for parents or siblings
• Emergency travel to support family

These events are common—and expensive. Your retirement planning framework needs to account for the reality that you probably won’t spend 30 years in isolation with zero family financial obligations.

The Lifestyle You Actually Want

Here’s the hard truth: many people work for 40+ years imagining a retirement filled with travel, hobbies, experiences, and freedom.

Then they retire and realize their retirement planning framework only budgeted for “bare minimum survival.”

Retirement isn’t just about not dying broke. It’s about actually enjoying the years you worked so hard to reach. Many people want to:

• Travel to places they’ve always dreamed of visiting
• Explore hobbies that require investment (golf, photography, woodworking, art)
• Attend family events across the country
• Enjoy dining out and entertainment
• Give generously to causes they care about
• Spoil grandchildren a bit

Planning only for the absolute minimum in your retirement planning framework often means sacrificing the enjoyment that makes retirement worthwhile.

The Problem with 25-Year Retirement Planning

Most retirement planning frameworks assume you’ll retire at 65 and live until roughly 90. That’s 25 years.

But life expectancy tables show that:

• A 65-year-old man today has a roughly 50% chance of living past 85 and about 25% chance of living past 90
• A 65-year-old woman today has a roughly 50% chance of living past 88 and about 25% chance of living past 92
• For married couples, there’s a high probability one spouse lives well into their 90s

And these are just averages. Medical advances continue to extend lifespans. Better treatments for heart disease, cancer, and other conditions mean people are living longer than previous generations.

What happens if your retirement planning framework plans for 25 years but you live 35 years?

You run out of money at 90—and you’re still alive, possibly for another 5-10 years, with zero earning capacity and potentially increasing care needs.

That’s not a scenario you can recover from. You can’t go back to work at 90. You can’t “catch up” on retirement savings. You’re simply broke, dependent, and stuck.

Why I Built a Different Retirement Planning Framework

After seeing the limitations of traditional retirement planning advice, after watching people struggle with inadequate retirement funds, after realizing that most retirement planning frameworks don’t account for reality—I developed the FinanceSwami Ironclad Retirement Planning Framework.

This framework is conservative. It assumes life will be expensive. It plans for longer lifespans. It builds in buffers for the unexpected.

I would much rather you over-prepare and have extra money in your 80s than under-prepare and spend your final years worrying about every dollar.

Let me walk you through each step.

Step 1: Build a 12-Month Rainy Day Fund (Non-Negotiable)

Before I even talk about retirement planning framework calculations, I want you financially stable today.

This is the foundation step that most retirement planning frameworks skip—and it’s a critical mistake.

What Is a Rainy Day Fund?

A rainy day fund is 12 months of essential living expenses kept in a safe, liquid, accessible account—completely separate from your retirement investments.

This is different from your retirement savings. This is different from your investment portfolio. This is money sitting in a high-yield savings account earning 2-4% annually, ready to be used when life goes wrong.

Why This Comes First in the Retirement Planning Framework

Your rainy day fund serves three critical purposes:

Purpose 1: Prevents Forced Selling During Market Downturns

Imagine this scenario: You’re 68 years old. The stock market drops 30% (this happens periodically—it happened in 2008, 2020, and will happen again). You have a $15,000 emergency expense.

If you don’t have a rainy day fund, you’re forced to sell investments while they’re down 30% to cover the expense. You lock in those losses. Your portfolio never recovers that money.

If you have a 12-month rainy day fund, you pay the $15,000 from your cash reserves. Your investments stay invested. When the market recovers, your portfolio recovers with it.

This single buffer can save you tens of thousands of dollars over a retirement.

Purpose 2: Handles Life Events Without Derailing Retirement

Job loss, health emergencies, family crises, major home repairs—these don’t stop just because you’re approaching retirement or already retired.

With a rainy day fund:

• Job loss at 62 doesn’t force you to claim Social Security early (and take permanently reduced benefits)
• Medical expenses don’t force you to withdraw retirement funds early (triggering penalties if under 59½)
• Home repairs don’t force you to rack up high-interest credit card debt

Without a rainy day fund, every emergency becomes a retirement planning crisis.

Purpose 3: Provides Emotional Stability for Better Investing

When you know you have 12 months of expenses in cash, you can:

• Invest your retirement accounts more patiently
• Ride out market volatility without panic selling
• Make strategic decisions instead of emotional decisions
• Sleep better at night knowing you’re covered

Your retirement planning framework should reduce stress, not create it. The rainy day fund is what makes everything else in this framework possible.

How to Calculate Your 12-Month Rainy Day Fund Target

Here’s exactly how to determine your rainy day fund goal:

Step 1: Calculate your essential monthly expenses

Include only the true necessities:

• Housing (rent/mortgage, property taxes, insurance)
• Utilities (electric, water, gas, trash, basic internet/phone)
• Food (groceries for home cooking)
• Transportation (car payment, insurance, gas, or public transit)
• Insurance (health, dental, vision, life if supporting dependents)
• Minimum debt payments
• Basic medications and healthcare

Do NOT include:

• Retirement contributions
• Discretionary spending (dining out, entertainment, hobbies)
• Luxury expenses
• Non-essential subscriptions

Example:

• Housing: $1,800
• Utilities: $250
• Food: $500
• Transportation: $400
• Insurance: $350
• Debt payments: $300
• Healthcare: $200

Total essential monthly expenses: $3,800

Step 2: Multiply by 12 months

$3,800 × 12 = $45,600

Your rainy day fund target: $45,600

12-Month Rainy Day Fund Calculation Worksheet

Use this template to calculate your own target:

ESSENTIAL MONTHLY EXPENSES:

Housing:

• Rent/Mortgage: $__________
• Property Tax (if not in mortgage): $__________
• Homeowners/Renters Insurance: $__________

Total Housing: $__________

Utilities:

• Electricity: $__________
• Water: $__________
• Gas/Heating: $__________
• Trash/Sewer: $__________
• Basic Internet: $__________
• Basic Phone: $__________

Total Utilities: $__________

Food:

• Groceries (home cooking only): $__________

Transportation:

• Car Payment: $__________
• Car Insurance: $__________
• Gas for essential driving: $__________
• Public Transit: $__________

Total Transportation: $__________

Insurance:

• Health Insurance: $__________
• Dental Insurance: $__________
• Vision Insurance: $__________
• Life Insurance (if supporting dependents): $__________

Total Insurance: $__________

Minimum Debt Payments:

• Credit Card Minimums: $__________
• Student Loan Minimums: $__________
• Personal Loan Minimums: $__________

Total Debt Payments: $__________

Healthcare:

• Prescriptions/Medications: $__________
• Regular Doctor Visits/Copays: $__________

Total Healthcare: $__________

TOTAL ESSENTIAL MONTHLY EXPENSES: $__________

12-MONTH RAINY DAY FUND TARGET:

Monthly Expenses × 12 = $__________

Where to Keep Your Rainy Day Fund

This money should be in a high-yield savings account at a reputable, FDIC-insured bank.

Good options include:

• Ally Bank
• Marcus by Goldman Sachs
• American Express Personal Savings
• Other established online banks with competitive rates

Requirements:

• FDIC insured (protects up to $250,000)
• No monthly fees
• No minimum balance requirements
• Easy online access for transfers
• Currently earning 2-4% APY (rates vary with Federal Reserve policy)

Do NOT keep this money:

• In a regular checking account earning 0%
• In investments (stocks, bonds, mutual funds)
• In retirement accounts (you need easy access without penalties)
• Under your mattress

The goal is safety and accessibility, not high returns. You’ll earn enough interest (2-4%) to partially keep up with inflation, but the real value is the protection it provides.

Building Your Rainy Day Fund Before Aggressive Retirement Saving

I know what you’re thinking: “But if I put $45,000 in savings, that’s money that could be invested for retirement growing at 8-10%!”

You’re right that there’s an opportunity cost. But here’s why the rainy day fund comes first in this retirement planning framework:

Reason 1: Foundation Before Building

You don’t build a house on sand. Your retirement planning framework is the house. Your rainy day fund is the foundation. Build the foundation first.

Reason 2: Prevents Retirement Account Raids

Without a rainy day fund, every emergency means withdrawing from retirement accounts early, which often triggers:

• 10% early withdrawal penalty (if under 59½)
• Income taxes on the withdrawal
• Permanent loss of tax-advantaged growth

A $10,000 retirement account withdrawal to cover an emergency at age 55 might actually cost you $30,000-$40,000 in lost growth over the next 30 years.

Reason 3: Enables Better Retirement Investing

Once your rainy day fund is complete, you can invest retirement money more aggressively (higher stock allocation) because you have a cash buffer. This often leads to better long-term returns than being forced to keep retirement money conservatively invested because you have no emergency fund.

Rainy Day Fund Priority in Your Overall Financial Plan

Here’s where the rainy day fund fits in your overall financial priority order:

Priority 1: Pay minimums on all debt (avoid default)

Priority 2: Contribute enough to 401(k) to get full employer match (free money)

Priority 3: Build $1,000-$2,000 starter emergency fund

Priority 4: Pay off high-interest debt (credit cards, payday loans)

Priority 5: Build full 12-month rainy day fund

Priority 6: Maximize retirement contributions (401k, IRA, etc.)

Once your 12-month rainy day fund is complete, you shift all that monthly contribution toward aggressive retirement saving. But not before.

This is the foundation of the FinanceSwami Ironclad Retirement Planning Framework. Everything else builds on this stability.

Step 2: Plan for 150% of Current Annual Expenses (Not 70%)

Now we get to the heart of why the FinanceSwami Ironclad Retirement Planning Framework diverges from conventional wisdom.

Most retirement planning frameworks tell you to plan for 70-80% of your pre-retirement income. I’m telling you to plan for 150% of your current annual expenses.

Let me explain exactly what this means and why it matters.

Understanding the Difference Between Income and Expenses

First, we need to clarify something important: we’re planning based on expenses, not income.

Many people confuse these. If you earn $80,000 per year, traditional advice says you need $56,000-$64,000 per year in retirement (70-80% of income).

But what if you only spend $45,000 per year currently because you save $20,000 and pay $15,000 in taxes?

The FinanceSwami Ironclad Retirement Planning Framework approach:

• Current annual spending: $45,000
• Retirement target: $67,500 (150% of current expenses)

This is much more accurate than blindly using a percentage of income.

The Three Retirement Planning Scenarios

I want you to understand three different planning levels. Most people should aim for the third level, but let me explain all three.

Scenario 1: Current Lifestyle Baseline (Minimum)

At the absolute minimum, assume you’ll need 100% of your current annual living expenses in retirement.

Not 70%. Not 80%. 100%.

This acknowledges that expense reductions (no commute, no retirement savings) and expense increases (healthcare, home maintenance) often cancel each other out.

Example:

• Current annual spending: $45,000
• Retirement target (Scenario 1): $45,000

This is the floor. You should not plan for less than this.

Scenario 2: The Realistic Buffer (125% More)

A more realistic target is 125% of your current annual expenses.

This provides breathing room for:

• Higher healthcare costs as you age
• Increased insurance premiums
• Home and vehicle maintenance
• Some lifestyle flexibility
• Mild inflation buffer

Example:

• Current annual spending: $45,000
• Retirement target (Scenario 2): $56,250

This is better. This accounts for some of the realities of aging and inflation. But it’s still not quite conservative enough for a truly ironclad retirement planning framework.

Scenario 3: The Ironclad Plan (150% More) — My Recommendation

This is the target I want most people to aim for in their retirement planning framework.

Plan for 150% of your current annual expenses.

Example:

• Current annual spending: $45,000
• Retirement target (Scenario 3): $67,500

Why 150% Works as a Retirement Planning Framework Standard

Let me break down exactly what this 150% buffer protects you from:

Protection 1: Major Medical Events

A serious health issue can easily add $10,000-$30,000 in out-of-pocket costs in a single year, even with Medicare. The 150% buffer absorbs these shocks without derailing your retirement.

Protection 2: Insurance Premium Increases

Medicare Part B, Part D, and supplemental insurance premiums rise over time. What costs $3,000 annually at 65 might cost $6,000-$8,000 by age 80. The buffer covers this.

Protection 3: Large, Irregular Expenses

New roof. New HVAC. New car. Major plumbing repair. These don’t happen every year, but they happen. Over 30 years, you’ll face multiple five-figure expenses. The 150% buffer smooths these out.

Protection 4: Service Costs

Lawn care, snow removal, house cleaning, handyman services—these add up to $3,000-$6,000 per year or more. The buffer covers the transition from DIY to paid services.

Protection 5: Inflation Over Decades

Even with Social Security cost-of-living adjustments, your purchasing power erodes over time. The 150% buffer provides cushion against 2-3% annual inflation compounding over 30+ years.

Protection 6: Family Generosity

Helping children, supporting grandchildren, covering family emergencies—these are real expenses that bring meaning to retirement. The buffer lets you be generous without jeopardizing your own security.

Protection 7: Quality of Life

Travel, hobbies, entertainment, dining out—retirement should include enjoyment, not just survival. The 150% buffer allows for the lifestyle you envisioned when you were working.

Protection 8: Cognitive Decline Planning

As cognitive abilities decline (which happens to many people in their 80s and 90s), you may make poor financial decisions or be vulnerable to scams. The extra buffer provides protection even if you’re not managing money perfectly later in life.

Calculating Your Retirement Spending Target

Here’s the step-by-step process for calculating your retirement planning framework spending target:

Step 1: Track Your Current Annual Spending

Look at the last 12 months. Add up everything you spent, including:

• Housing (mortgage/rent, property taxes, insurance, maintenance)
• Utilities
• Food (groceries and dining out)
• Transportation (car payments, insurance, gas, maintenance)
• Insurance (health, dental, vision, life, disability)
• Healthcare (copays, prescriptions, procedures)
• Debt payments
• Subscriptions and memberships
• Personal care
• Entertainment and hobbies
• Gifts
• Clothing
• Travel
• Miscellaneous

Use bank statements, credit card statements, and budget tracking apps. Be thorough.

Step 2: Subtract Retirement-Specific Expenses

Remove expenses that won’t exist in retirement:

• Retirement account contributions (401k, IRA, etc.)
• Mortgage payment (if house will be paid off)
• Work commuting costs
• Work wardrobe expenses
• Payroll taxes (FICA)

Step 3: Calculate Your Current Retirement Lifestyle Spending

This is what you spend annually on actual living, after removing retirement contributions and expenses that will disappear.

Example:

• Total current annual spending: $65,000
• Minus retirement contributions: -$12,000
• Minus payroll taxes: -$5,000
• Minus commuting costs: -$2,400
• Current lifestyle spending: $45,600

Step 4: Multiply by 150%

$45,600 × 1.50 = $68,400

Your retirement planning framework spending target: $68,400 per year

Retirement Spending Calculation Worksheet

CURRENT ANNUAL SPENDING BREAKDOWN:

Housing:

• Mortgage/Rent: $__________
• Property Taxes: $__________
• Homeowners/Renters Insurance: $__________
• HOA Fees: $__________
• Home Maintenance/Repairs: $__________

Annual Housing Total: $__________

Utilities:

• Electricity: $__________
• Water: $__________
• Gas/Heating: $__________
• Trash/Sewer: $__________
• Internet: $__________
• Phone: $__________
• Cable/Streaming: $__________

Annual Utilities Total: $__________

Food:

• Groceries: $__________
• Dining Out/Takeout: $__________

Annual Food Total: $__________

Transportation:

• Car Payments: $__________
• Car Insurance: $__________
• Gas: $__________
• Maintenance/Repairs: $__________
• Registration/Fees: $__________
• Public Transit: $__________

Annual Transportation Total: $__________

Insurance & Healthcare:

• Health Insurance Premiums: $__________
• Dental Insurance: $__________
• Vision Insurance: $__________
• Life Insurance: $__________
• Disability Insurance: $__________
• Doctor Visits/Copays: $__________
• Prescriptions: $__________
• Medical Procedures: $__________

Annual Insurance/Healthcare Total: $__________

Debt Payments:

• Credit Cards: $__________
• Student Loans: $__________
• Personal Loans: $__________
• Other Debt: $__________

Annual Debt Total: $__________

Lifestyle & Discretionary:

• Entertainment: $__________
• Hobbies: $__________
• Subscriptions/Memberships: $__________
• Personal Care (haircuts, etc.): $__________
• Clothing: $__________
• Gifts: $__________
• Travel/Vacation: $__________
• Pet Care: $__________
• Charitable Giving: $__________
• Miscellaneous: $__________

Annual Lifestyle Total: $__________

TOTAL CURRENT ANNUAL SPENDING: $__________

SUBTRACT RETIREMENT-SPECIFIC EXPENSES:

• Retirement Contributions (401k, IRA, etc.): -$__________
• Mortgage (if will be paid off): -$__________
• Commuting Costs: -$__________
• Work Wardrobe: -$__________
• Payroll Taxes (FICA, 7.65% of wages): -$__________

CURRENT LIFESTYLE SPENDING: $__________

RETIREMENT PLANNING SCENARIOS:

Scenario 1 (100% – Minimum):

Current Lifestyle × 1.00 = $__________

Scenario 2 (125% – Realistic):

Current Lifestyle × 1.25 = $__________

Scenario 3 (150% – Ironclad Recommendation):

Current Lifestyle × 1.50 = $__________

MY RETIREMENT SPENDING TARGET: $__________

Adjusting for Life Changes

Your retirement planning framework spending target isn’t set in stone forever. Recalculate if:

• You pay off your mortgage
• Your children become financially independent
• You downsize your home
• You relocate to a lower cost-of-living area
• Your health status changes significantly
• You make major lifestyle changes

But always err on the side of planning for more, not less. It’s better to have a buffer you don’t fully need than to run short at 80.

The Peace of Mind Factor

I would much rather you over-prepare and have extra money in your 80s than under-prepare and spend your final years worrying about every dollar, skipping medications to save money, or becoming a financial burden on your children.

The 150% target in this retirement planning framework isn’t about pessimism. It’s about building a retirement that’s genuinely secure, genuinely comfortable, and genuinely able to handle whatever life throws at you for 30+ years.

Step 3: Plan for a 35-Year Retirement Horizon (Not 25 Years)

Most retirement planning frameworks assume a 25-year retirement. The FinanceSwami Ironclad Retirement Planning Framework plans for 35 years.

This single change makes an enormous difference in how much you need to save and how you structure your retirement strategy.

Why 25 Years Isn’t Enough Anymore

Traditional retirement planning was built around the assumption that you retire at 65 and live until about 90. That’s 25 years.

But several factors have changed:

Factor 1: Life Expectancy Is Increasing

Medical advances are extending lifespans:

• Better treatments for heart disease
• Improved cancer survival rates
• Advanced diabetes management
• More effective medications for common aging conditions
• Better surgical techniques
• Increased health awareness and preventive care

According to the Social Security Administration:

• A man reaching age 65 today can expect to live, on average, until age 84
• A woman turning age 65 today can expect to live, on average, until age 86.5
• About one out of every three 65-year-olds today will live past 90
• About one out of every seven will live past 95

But these are averages. Many people live well beyond these ages.

Factor 2: Longer Retirements Are Becoming Common

I regularly see retirement planning scenarios where people:

• Retire at 62-64 (earlier than 65)
• Live into their mid-90s or beyond

That’s potentially 30-33 years of retirement, not 25.

Factor 3: The Cost of Being Wrong Is Catastrophic

Here’s the critical difference between planning for 25 years versus 35 years:

If you plan for 25 years and live 25 years: You’re fine. Your money lasts.

If you plan for 25 years and live 35 years: You run out of money at 90 with potentially 5-10 years still to live. You can’t go back to work. You can’t recover. You’re broke and dependent.

If you plan for 35 years and live 25 years: You die with money left over. Your heirs benefit. No harm done.

If you plan for 35 years and live 35 years: You’re completely fine. Your money lasts. You have security.

The math is simple: planning for longer costs you nothing if you die sooner, but planning for shorter is catastrophic if you live longer.

How a 35-Year Retirement Horizon Changes the Math

Let’s look at concrete examples of how planning horizon affects retirement savings targets.

Example: Planning for 25 Years vs. 35 Years

Assumptions:

• Retirement spending target: $50,000 per year
• Social Security: $20,000 per year
• Need from savings: $30,000 per year
• Withdrawal rate: 4%

25-Year Planning Horizon:

• Many calculators suggest you need: $750,000

35-Year Planning Horizon:

• You actually need: $950,000-$1,000,000+

That’s a $200,000-$250,000 difference because:

• You need the money to last 40% longer
• Inflation compounds over more years
• Sequence of returns risk increases
• You face more years of potentially high expenses

The Reality of Retirement Length

Let me show you what retirement length actually looks like for real people:

Couple Retiring at 65:

• Husband lives to 88 (23 years in retirement)
• Wife lives to 93 (28 years in retirement)

For this couple as a unit, their retirement planning framework needs to support at least 28 years. If they plan for only 25 years, the wife is uncovered for the last 3 years—exactly when healthcare costs are likely highest.

Individual Retiring at 62:

• Lives to 95 (33 years in retirement)

If this person’s retirement planning framework only accounted for 25 years, they run out of money at 87 and face 8 more years with no resources.

Early Retiree at 60:

• Lives to 92 (32 years in retirement)

Planning for only 25 years means running out of money at 85.

The 35-Year Planning Horizon Provides Essential Margin

Here’s what the 35-year horizon does for your retirement planning framework:

Benefit 1: Longevity Protection

You’re covered even if you live into your late 90s or reach 100. This is increasingly common and will only become more so.

Benefit 2: Inflation Buffer

More years means more compounded inflation. The 35-year horizon forces you to account for prices potentially tripling over your retirement.

Benefit 3: Healthcare Cost Coverage

The most expensive healthcare typically happens in the final years of life. A 35-year horizon ensures you’re financially covered for those high-cost final years.

Benefit 4: Reduced Withdrawal Pressure

Planning for more years means you can afford to withdraw less aggressively early in retirement, which helps preserve capital and reduces sequence-of-returns risk.

Benefit 5: Mental Peace

Knowing your retirement planning framework covers 35 years eliminates the anxiety of “what if I live too long?” You’re covered.

Retirement Horizon Comparison Table

How to Apply the 35-Year Horizon

When using any retirement calculator or retirement planning framework:

• Change the default “retirement length” from 25 or 30 years to 35 years
• If the calculator asks for “life expectancy,” add 10 years to the standard estimate
• If using withdrawal rate calculations, factor in the longer time horizon (this is why we use 3.5% instead of 4%, which we’ll cover in Step 4)

Special Considerations

If You Have Longevity in Your Family:

If your parents and grandparents lived into their 90s or beyond, consider planning for 40 years. Genetics matter, and you may have inherited longevity genes.

If You Have Serious Health Conditions:

You might reasonably plan for a shorter horizon, but be careful: medical advances are improving outcomes for many conditions. Don’t under-save based on a health condition that might be better managed in 10-20 years.

If You’re Retiring Early (Before 60):

Plan for 40+ years. If you retire at 55 and live to 95, that’s 40 years. The earlier you retire, the longer your retirement planning framework needs to cover.

The Bottom Line on Retirement Horizon

Running out of money at 90 isn’t a “small miscalculation.” It’s a catastrophe that you cannot recover from.

Planning for 35 years builds essential margin into your retirement planning framework. It’s not excessive. It’s not paranoid. It’s responsible planning that accounts for the reality of modern life expectancy.

Step 4: The FinanceSwami Ironclad 3.5% Planning Rule

Now that we know how much you need to spend annually in retirement (Step 2) and how long your money needs to last (Step 3), we can calculate how much you need to save.

This is where the FinanceSwami Ironclad 3.5% Planning Rule comes in—and where this retirement planning framework diverges significantly from conventional wisdom.

Understanding the Traditional 4% Rule

First, let me explain what the 4% rule is and where it came from.

The 4% rule is a retirement planning framework guideline that suggests:

• You can withdraw 4% of your retirement portfolio in the first year of retirement
• Adjust that dollar amount upward each year for inflation
• Historically, this approach has supported approximately 30 years of retirement without running out of money

Example of the 4% Rule:

• Portfolio value: $1,000,000
• First year withdrawal: $40,000 (4%)
• Second year: $40,000 × 1.03 (assuming 3% inflation) = $41,200
• Third year: $41,200 × 1.03 = $42,436
• And so on…

The 4% rule came from research by financial planner William Bengen in 1994, later refined by the Trinity Study. It’s based on historical stock and bond returns from 1926-1995.

The 4% rule has been useful as a starting point for retirement planning frameworks. It gives people a simple way to estimate how much they need to save.

But it has limitations.

Why the 4% Rule Isn’t Enough for the Ironclad Retirement Planning Framework

The traditional 4% rule was built around:

• A 30-year retirement horizon
• Historical market conditions (1926-1995)
• A 50/50 stock/bond portfolio
• Assumptions that may not fully reflect modern realities

Our retirement planning framework requires different assumptions:

Issue 1: We’re Planning for 35 Years, Not 30

The extra 5 years of retirement significantly increases the risk of portfolio depletion. Research shows that a 4% withdrawal rate has roughly a 90-95% success rate for 30 years, but that success rate drops for longer time horizons.

Issue 2: Sequence of Returns Risk

If you retire just before or during a major market downturn (like 2008 or 2020), you’re forced to sell investments while they’re down to fund living expenses. This “sequence of returns risk” can devastate a portfolio.

Starting with a slightly lower withdrawal rate (3.5% instead of 4%) provides more cushion for bad luck with market timing.

Issue 3: Current Market Valuations

Some retirement planning framework experts argue that today’s market valuations and bond yields are different from historical averages, potentially reducing future returns. A more conservative withdrawal rate accounts for this uncertainty.

Issue 4: Rising Healthcare Costs

Healthcare inflation has historically outpaced general inflation. For retirees facing increasing medical expenses, a 3.5% starting withdrawal rate provides more buffer.

Issue 5: Longer Life Expectancy

People are living longer than the historical data assumed. A 3.5% rate accounts for potentially living into your late 90s or beyond.

Introducing the FinanceSwami Ironclad 3.5% Planning Rule

The FinanceSwami Ironclad 3.5% Planning Rule adjusts the withdrawal rate downward to account for:

• Longer retirement horizons (35 years)
• Sequence-of-returns risk
• Rising healthcare and insurance costs
• Modern longevity
• The need for built-in margin

This is not about pessimism or fear—it’s about aligning your withdrawal assumptions with the longer planning horizon and real-world expenses you’re actually facing.

Think of 3.5% as a planning buffer, not a permanent spending cap.

Starting conservatively:

• Gives your portfolio more room to absorb market downturns early in retirement
• Reduces the risk of forced spending cuts later
• Provides flexibility to spend more if markets perform well
• Creates margin for unexpected expenses

You can always spend more if your portfolio is performing well. But if you start at 4% and your portfolio underperforms, cutting spending when you’re 75 is painful and difficult.

How to Use the 3.5% Rule to Calculate Your Savings Target

Here’s the simple formula:

Retirement Savings Target = Annual Spending Need ÷ 0.035

Let me walk you through the complete calculation:

Step 1: Determine Your Total Annual Retirement Spending Target

From Step 2, you calculated 150% of your current expenses.

Example: $68,000 per year

Step 2: Subtract Guaranteed Income Sources

Most people will have Social Security. Some may have pensions.

Example:

• Total retirement spending target: $68,000
• Social Security (estimated): $24,000
• Pension: $0
• Need from savings: $44,000 per year

Step 3: Apply the 3.5% Rule

$44,000 ÷ 0.035 = $1,257,143

That’s your retirement savings target.

Comparing 3.5% vs. 4% Withdrawal Rates

Let me show you the difference between these two approaches:

Example Scenario:

• Annual spending need from savings: $44,000
• Planning horizon: 35 years

Using Traditional 4% Rule:

$44,000 ÷ 0.04 = $1,100,000 savings target

Using FinanceSwami Ironclad 3.5% Rule:

$44,000 ÷ 0.035 = $1,257,143 savings target

Difference: $157,143

That extra $157,143 is not waste. It’s insurance:

• It accounts for your 35-year horizon (not 25-30)
• It provides flexibility during market volatility
• It increases the likelihood your savings last without forcing lifestyle cuts
• It gives you margin for unexpected expenses

Retirement Savings Target Calculation Worksheet

STEP 1: ANNUAL RETIREMENT SPENDING TARGET

From Step 2 (150% of current expenses): $__________

STEP 2: GUARANTEED INCOME SOURCES

Social Security (estimated annual):

• Your benefit: $__________
• Spouse benefit (if applicable): $__________
• Total Social Security: $__________

Pension (if applicable):

• Your pension: $__________
• Spouse pension (if applicable): $__________
• Total Pension: $__________

Other Guaranteed Income:

• Rental income: $__________
• Annuities: $__________
• Other: $__________

Total Guaranteed Income: $__________

STEP 3: ANNUAL NEED FROM SAVINGS

Retirement Spending Target: $__________

Minus Guaranteed Income: -$__________

Annual Need from Savings: $__________

STEP 4: RETIREMENT SAVINGS TARGET

Using Traditional 4% Rule:

Annual Need ÷ 0.04 = $__________

Using FinanceSwami Ironclad 3.5% Rule:

Annual Need ÷ 0.035 = $__________

MY RETIREMENT SAVINGS TARGET (3.5% Rule): $__________

Understanding What This Target Means

Your retirement savings target is the total amount you need saved by your planned retirement date across all retirement accounts:

• 401(k)
• 403(b)
• Traditional IRA
• Roth IRA
• SEP IRA
• Taxable brokerage accounts earmarked for retirement
• Any other investment accounts intended for retirement

This does NOT include:

• Your emergency fund (that’s separate)
• Home equity (unless you plan to sell and downsize)
• Other non-liquid assets

The Flexibility Built Into 3.5%

Here’s what people misunderstand: the 3.5% rule is a starting point and planning target, not a rigid spending limit.

In practice:

Good market years: You might withdraw 4% or more without concern because your portfolio has grown.

Poor market years: You might withdraw 3% or cut discretionary spending temporarily to preserve capital.

Later in retirement: If your portfolio has grown significantly and you’re 80+ years old with a shorter remaining horizon, you might increase withdrawals.

If markets crash early: The 3.5% starting rate gives you more cushion to ride out volatility without depleting your portfolio.

The 3.5% planning rate builds in margin so you’re not constantly stressed about money or forced to make painful cuts when you’re 75.

The 4% Rule Helps You Understand the Problem. The 3.5% Rule Helps You Solve It Responsibly.

The 4% rule is useful for understanding retirement planning framework basics and ballpark estimates.

The FinanceSwami Ironclad 3.5% Planning Rule is what I recommend for actually building a retirement plan that you can count on for 35 years, through good markets and bad, through rising healthcare costs and unexpected expenses.

That extra margin—the difference between 3.5% and 4%—is what makes your retirement “ironclad.”

Step 5: Capital Preservation and Sustainable Income Focus (Age 65+)

Once you reach age 65 and beyond, your financial priorities shift fundamentally.

The FinanceSwami Ironclad Retirement Planning Framework recognizes that the objective changes when you actually enter retirement.

The Shift in Financial Priorities at 65+

Before retirement (accumulation phase):

• Goal: Grow your wealth as much as possible
• Time horizon: 20-40 years until retirement
• Risk tolerance: Can be higher because you have time to recover from market downturns
• Strategy: Aggressive growth, maximum returns

After retirement (preservation and distribution phase):

• Goal: Preserve capital and generate reliable income
• Time horizon: 35 years of spending needs
• Risk tolerance: Lower because you can’t easily replace losses
• Strategy: Stability, predictability, sustainable withdrawals

What Capital Preservation Means

Capital preservation doesn’t mean “never lose a dollar.” It means:

Priority 1: Protect Against Catastrophic Loss

You cannot afford to lose 40-50% of your portfolio in a market crash and have no way to recover. Unlike someone working who can keep contributing during downturns, you’re withdrawing money.

Priority 2: Generate Reliable Cash Flow

You need consistent, predictable income to cover living expenses. Volatility in cash flow creates stress and poor decision-making.

Priority 3: Maintain Purchasing Power

Your money needs to keep up with inflation over 35 years. Pure “safety” (like keeping everything in cash) actually destroys wealth through inflation.

Priority 4: Enable Flexibility

Your portfolio structure should allow you to withdraw money during market downturns without being forced to sell stocks when they’re down.

Why Investment Strategy Changes at Retirement

Let me explain why the same aggressive portfolio that worked at 45 doesn’t work at 70:

Reason 1: No More Contributions

When you’re working and contributing to retirement accounts:

• Market crashes let you buy stocks on sale
• You’re dollar-cost averaging during volatility
• You have years to recover

When you’re retired and withdrawing:

• Market crashes force you to sell stocks while they’re down
• You’re reverse dollar-cost averaging (selling more shares when prices are low)
• You don’t have income to wait out long recoveries

Reason 2: Sequence of Returns Risk

The order of investment returns matters enormously when you’re withdrawing money.

Example of Sequence Risk:

Person A retires in 2007:

• Starts with $1,000,000
• Withdraws $40,000 per year
• Immediately faces 2008 crash (-37% market drop)
• Portfolio drops to ~$593,000 after withdrawal and crash
• Never fully recovers because they’re withdrawing throughout

Person B retires in 2010:

• Starts with $1,000,000
• Withdraws $40,000 per year
• Benefits from strong market recovery (2010-2019)
• Portfolio grows despite withdrawals

Same starting amount, same withdrawal rate, but Person A runs out of money while Person B is fine—purely due to luck of retirement timing.

Capital preservation strategies reduce sequence risk.

Reason 3: Shorter Recovery Time

At 45, you can wait 10-15 years for markets to recover from a crash. At 75, you might not have 10-15 years, and you’re withdrawing money during that entire period.

Reason 4: Cognitive Decline

As you age, your ability to make complex financial decisions may decline. A simpler, more stable portfolio structure reduces the need for constant active management.

What Capital Preservation Looks Like in Practice

Capital preservation in this retirement planning framework means:

Element 1: Diversified Asset Allocation

A mix of:

• Stocks for growth and inflation protection
• Bonds for stability and income
• Cash for near-term expenses and emergency buffer

The exact allocation depends on your specific situation, risk tolerance, and income needs—which is why detailed portfolio construction belongs in the FinanceSwami Ironclad Investment Strategy Framework.

Element 2: Income-Generating Investments

Focus on investments that produce cash flow:

• Dividend-paying stocks
• Bond interest
• Real estate investment trusts (REITs) with distributions

Having investments that throw off income reduces the need to sell shares to fund living expenses.

Element 3: Cash Buffer Strategy

Keep 1-3 years of expenses in cash or very safe, short-term bonds. This allows you to:

• Avoid selling stocks during market crashes
• Wait for recovery before replenishing cash reserves
• Reduce sequence of returns risk

Element 4: Periodic Rebalancing

As some investments grow and others don’t, rebalancing keeps your risk level appropriate. This typically means:

• Selling portions of investments that have grown significantly
• Buying investments that have underperformed or maintaining stable allocations
• Doing this annually or when allocations drift beyond target ranges

Why This Framework Stops Here

The FinanceSwami Ironclad Retirement Planning Framework intentionally focuses on:

• How much you need to save (Steps 1-4)
• How much you need to spend (Step 2)
• How long money needs to last (Step 3)
• When priorities shift (Step 5)

But it deliberately does NOT prescribe exact portfolio allocations, specific investments, or detailed asset allocation percentages.

Why?

Because those decisions are deeply personal and depend on:

• Your specific risk tolerance
• Your income sources (Social Security, pension, rental income, etc.)
• Your health and longevity expectations
• Your desire to leave an inheritance
• Your comfort with market volatility
• Your total asset base
• Tax considerations

The how of portfolio construction—what percentage in stocks, which bonds to hold, how to generate income, age-based allocation adjustments—belongs in the FinanceSwami Ironclad Investment Strategy Framework, where we break down exactly how to structure investments to support this retirement planning framework.

The Relationship Between Planning and Investing

Think of it this way:

The Retirement Planning Framework (what you’re reading now) tells you:

• How much you need
• How long it needs to last
• When priorities change
• What you’re planning for

The Investment Strategy Framework tells you:

• How to allocate assets
• Which investments to choose
• How to rebalance
• How to generate income
• How to manage taxes

They work together, but they’re separate disciplines.

You need both. But you need the planning framework first to know what you’re actually trying to achieve with your investments.

What You Can Do Right Now

Even without the detailed investment framework, here are actions you can take immediately:

Action 1: Assess Your Current Retirement Accounts

Make a list of all retirement accounts and current balances:

• 401(k): $__________
• IRA: $__________
• Roth IRA: $__________
• Other: $__________

Total: $__________

Action 2: Compare to Your Target

Based on Step 4, your target is: $__________

Your current total is: $__________

Gap: $__________

Action 3: Calculate Required Monthly Savings

If you have 15 years until retirement and need to save an additional $300,000, you need to save approximately $1,400-$1,600 per month (assuming 7% average returns).

Use online retirement calculators to determine your required monthly contribution based on:

• Current savings
• Target savings
• Years until retirement
• Expected investment returns

Action 4: Maximize Contributions

• Max out employer 401(k) match (this is free money)
• Increase 401(k) contributions toward the annual limit ($23,000 in 2024 for those under 50, $30,500 for those 50+)
• Open and fund an IRA if eligible ($7,000 limit in 2024 for those under 50, $8,000 for those 50+)
• Consider Roth IRA for tax diversification

Action 5: Review and Adjust Annually

Your retirement planning framework isn’t set-it-and-forget-it. Review annually:

• Am I on track to hit my savings target?
• Has my spending changed significantly?
• Do I need to adjust my retirement age?
• Should I revise my spending target?

The Foundation Is Complete

At this point, you have a complete retirement planning framework:

• Step 1: 12-month rainy day fund for stability
• Step 2: Spending target at 150% of current expenses
• Step 3: Planning horizon of 35 years
• Step 4: Savings target using 3.5% withdrawal rate
• Step 5: Understanding that priorities shift at 65+

This gives you clear numbers, realistic expectations, and built-in margin for the unexpected.

Conclusion: Your Ironclad Retirement Planning Framework

Let me bring this all together.

Most retirement planning frameworks are built on optimistic assumptions: you’ll need less money, your expenses will drop, 25 years is enough, 4% is safe.

The FinanceSwami Ironclad Retirement Planning Framework is built on reality: expenses rise, healthcare costs compound, people live longer than expected, market timing matters.

The Five Pillars of This Retirement Planning Framework

Pillar 1: Stability First

12 months of expenses in a rainy day fund gives you a foundation to build on and protects your retirement investments from being raided during emergencies.

Pillar 2: Realistic Spending

Planning for 150% of current expenses accounts for healthcare, maintenance, inflation, and quality of life—not just bare-bones survival.

Pillar 3: Longevity Protection

35-year planning horizon ensures your money lasts even if you live well into your 90s or beyond.

Pillar 4: Conservative Withdrawal

3.5% starting rate provides margin for market volatility, sequence risk, and unexpected expenses over a long retirement.

Pillar 5: Strategic Shift

Recognizing that investment strategy must change at 65+ to prioritize preservation and income over maximum growth.

What Makes This Framework “Ironclad”

This retirement planning framework is ironclad because:

It’s built to withstand reality. It doesn’t assume best-case scenarios. It assumes healthcare costs rise, homes need maintenance, markets crash periodically, and life throws curveballs.

It’s conservative by design. It’s better to over-save and have extra security than to under-save and face poverty at 85.

It’s comprehensive. It covers stability (rainy day fund), spending (realistic targets), longevity (35 years), savings (3.5% rule), and priorities (capital preservation at 65+).

It’s tested. This retirement planning framework is based on real-world observation of what actually happens to people in retirement, not just academic models.

It gives you margin. When unexpected expenses arrive, when markets crash, when healthcare costs spike—you have room to absorb these shocks without your retirement collapsing.

Your Next Steps

Here’s exactly what to do next:

Step 1: Calculate Your Numbers

Use the worksheets in this retirement planning framework to determine:

• Your 12-month rainy day fund target
• Your annual retirement spending target (150% of current expenses)
• Your retirement savings target (using 3.5% rule)

Step 2: Assess Your Current Situation

Compare where you are today to where you need to be:

• Do you have your rainy day fund complete?
• Are you on track to hit your retirement savings target?
• How many years until retirement?
• What’s your monthly savings gap?

Step 3: Make a Plan to Close the Gap

If you’re behind:

• Increase retirement contributions
• Maximize employer match
• Consider working a few years longer
• Look for ways to reduce expenses and increase savings rate
• Consider side income to boost retirement contributions

Step 4: Review Annually

Your retirement planning framework needs periodic maintenance:

• Recalculate spending targets as life changes
• Adjust for paid-off mortgages or new expenses
• Update Social Security estimates
• Revise savings targets as needed
• Monitor progress toward goals

Step 5: Learn About Investment Implementation

Once you have your retirement planning framework in place, dive deeper into how to invest by exploring the FinanceSwami Ironclad Investment Strategy Framework, which covers:

• Asset allocation by age
• Income-generating investments
• Tax-efficient withdrawal strategies
• Rebalancing methods
• Risk management

Final Thoughts on This Retirement Planning Framework

Retirement planning isn’t about hitting some arbitrary percentage of your income or following rules that were built decades ago for different circumstances.

It’s about building a financial foundation that lets you live with dignity, security, and peace of mind for potentially 35 years after you stop working.

The FinanceSwami Ironclad Retirement Planning Framework gives you that foundation.

It’s conservative. It’s comprehensive. It’s realistic. And most importantly, it’s designed to actually work when life gets messy—because life always gets messy.

You deserve a retirement where you’re not worried about money every day. Where unexpected expenses don’t create panic. Where you can be generous with family, enjoy experiences, and live the life you spent decades working toward.

This retirement planning framework is how you build that security.

Start with Step 1. Build your rainy day fund. Calculate your real numbers. Make a plan. And stick to it.

Your 75-year-old self will thank you.

—

About FinanceSwami & Important Note

FinanceSwami is a personal finance education site designed to explain money topics in clear, practical terms for everyday life.

Important note: This content is for educational purposes only and does not constitute personalized financial advice.

Keep Learning with FinanceSwami

This retirement planning framework is comprehensive and actionable on its own, but it’s part of a larger mission to make personal finance clear, practical, and accessible.

If you want to dive deeper into the fundamentals of retirement planning—understanding Social Security strategies, maximizing employer retirement accounts, learning about IRAs versus 401(k)s, planning healthcare costs in retirement, and exploring different retirement scenarios—visit the complete Ultimate Guide to Retirement Planning on FinanceSwami blog.

For investment strategies that support this retirement planning framework—including asset allocation by age, income-generating investments, tax-efficient withdrawal strategies, and portfolio construction for retirees—explore the FinanceSwami Ironclad Investment Strategy Framework.

You can also find clear, practical financial education on the FinanceSwami YouTube channel, where I break down complex topics into simple, actionable guidance using the same patient teaching approach you’ve seen in this retirement planning framework.

Whether you prefer to read detailed guides or watch video explanations, the goal is the same: giving you the knowledge and tools to build genuine financial security.

Money is complicated. Retirement planning frameworks don’t have to be.

Take what you’ve learned here and build a retirement you can count on.

— FinanceSwami