May 2025

A common rule of thumb for retirement planning is the 4% rule. It suggests that if you withdraw 4% of your retirement portfolio annually, your savings should last about 30 years. For example, if you plan to spend $50,000 per year in retirement, you would need a portfolio of $1,250,000 ($50,000 ÷ 0.04).

However, this rule was developed over 30 years ago, and today’s economic landscape calls for a more nuanced approach. One of the most common mistakes retirees make is underestimating the impact of inflation—especially in sectors like healthcare. In recent years, healthcare costs have been rising at least 1% faster than general inflation.

At Vibrance Wealth Management, our financial planning models assume 3% general inflation and 5% for healthcare costs. We believe it’s better to plan conservatively than to leave our clients vulnerable to unpleasant surprises.

We also recommend establishing secure income streams—such as Social Security, pensions, or annuities—to cover at least one-third of your essential living expenses. In addition, having long-term care insurance can help protect your assets if you need assistance in the future. These measures can provide retirees with a stronger sense of security and reduce the pressure on their investment portfolio to support all expenses.

Read more: Kiplinger

Gold has been outperforming many other asset classes since last year, often signaling that investors are seeking safety or hedging against risks such as inflation, recession fears, or geopolitical instability.

While gold is commonly viewed as a safe-haven asset, it is not without risks. Gold is still a commodity, which means it can be subject to significant short-term volatility, and it’s exposed to risks such as currency fluctuations. Historically, gold has tended to perform well during times when stocks are struggling—but during sharp market selloffs, gold may also decline, although it often recovers sooner than equities.

This short-term volatility reflects gold’s role as a crisis hedge. It can play a valuable part in a diversified portfolio, especially during inflationary or uncertain periods. Gold’s behavior highlights the importance of diversification—different asset classes will lead or lag depending on broader market conditions.

Read more: Bloomberg

Having three generations in one family can be a beautiful experience—but for those in the sandwich generation, it often comes with significant emotional and financial pressure. You may be supporting children while also caring for aging parents, all while trying not to delay your own retirement goals.

It's crucial to prioritize your own financial health. While funding a child’s education is important, there are multiple resources available—such as student loans, financial aid, and scholarships. In contrast, your retirement will primarily depend on your own savings.

Caring for parents can be especially challenging when they are reluctant to talk about their needs. But just like the airplane oxygen mask analogy—you must take care of yourself first before helping others.

If you're feeling overwhelmed, this is the time to consult a Certified Financial Planner®. Start by gaining clarity on your own financial situation, then explore solutions to support both your children and aging parents in a sustainable way.

Read more: trust & will

If you're in your early 60s, the SECURE Act 2.0 offers an enhanced opportunity to boost your retirement savings. Beginning in 2025, individuals aged 60 to 63 can make super catch-up contributions to qualified retirement plans.

Instead of the standard $7,500 catch-up for those over 50, this provision allows for 150% of the regular catch-up amount—which equals $11,250. Combined with the regular 2025 deferral limit of $23,500, eligible individuals can contribute up to $34,750 in total.

This is particularly beneficial for those who may have delayed retirement savings due to other priorities—such as funding college for their children. With life expectancies reaching well into the 90s, there’s still ample time to grow your retirement assets.

Read more: The Motley Fool