Most People Follow the Wrong Rules About Money

When it comes to retirement planning, most people assume that the key to financial security is accumulating as much as possible and then hoping it lasts. This is what we call Survival Planning—and it’s based on a flawed set of financial rules.

These rules create fear, uncertainty, and risk because they rely on:

• Consuming savings instead of creating reliable income.

• Market-dependent investments that expose your wealth to volatility.

• Taxable retirement accounts that put more money in the government’s pocket than yours.

But here’s the truth: The quality of your retirement isn’t determined by how much money you save—it’s determined by the financial rules you follow.

The Survival Plan: How Traditional Retirement Planning Fails

Most advisors put their clients in a 60/40 stock and bond portfolio and call it a “retirement plan.” But this strategy follows outdated rules that compound risk instead of security.

Here’s what happens when you follow traditional financial advice:

1. You’re told to live off a small percentage of your savings—Vanguard suggests withdrawing just 2.8% per year to ensure you don’t run out.

   • That means a $1M portfolio gives you just $28,000 per year before taxes—barely enough for a “millionaire lifestyle.”

2. Your money stays exposed to market crashes—If a downturn happens early in retirement, your entire future is at risk.

3. You face increasing tax burdens—Required Minimum Distributions (RMDs) force you to withdraw more as you age, triggering higher taxes and possibly increasing what you owe on Social Security benefits.

4. Your children inherit a tax problem, not wealth—Most people don’t realize that inherited IRAs are heavily taxed, meaning your kids could lose a significant portion of your legacy to the government.

These rules set you up for failure because they don’t eliminate the biggest risks in retirement—they build fear into your financial future.

The Possibility Plan: The Rules the Wealthy Follow

The wealthy don’t play by the same rules as the average retiree. Instead of hoping their savings last, they create financial systems that:
✔ Replace their paycheck with guaranteed income so they never run out of money.
✔ Eliminate unnecessary taxes to keep more of what they’ve earned.
✔ Protect their wealth from market downturns instead of risking it all.
✔ Use financial tools that grow their money, rather than slowly depleting it.
✔ Pass on wealth to their children tax-free, rather than leaving them a financial burden.

This is the foundation of Possibility Planning—where every financial decision creates a compounding positive impact on your retirement.

Case Study: Two Retirees, Two Very Different Outcomes

Last week, we shared a real case study of a 67-year-old widow who had been following the Survival Plan. She had $1M in savings and lived off $5,000 per month from Social Security and a pension.

If she did nothing and continued following traditional advice, she would:

• Pay $880,000 in taxes over her lifetime.

• Be forced to take RMDs, increasing her taxable income.

• Leave her children a heavily taxed inheritance, reducing their financial security.

But when she changed the financial rules she followed and applied Possibility Planning, she:

• Used Roth conversions to move money into a tax-free account.

• Eliminated RMDs and saved $200,000 in taxes.

• Left $3.2M tax-free to her children instead of burdening them with taxes.

• Created guaranteed income so she never had to fear running out of money.

By following a better set of financial rules, she completely transformed her retirement future.

The Compounding Impact of Better Financial Rules

Possibility Planning isn’t just about making better financial choices—it’s about creating a system that builds wealth instead of consuming it.

• Replacing your paycheck means you never run out of money.

• Protecting your wealth keeps more money in your pocket instead of going to taxes or the market.

• Growing your assets ensures you always have more, not less as you age.

• Leaving a tax-free legacy secures your children’s financial future.

• Eliminating fear allows you to actually enjoy your retirement, instead of constantly worrying about money.

The traditional approach forces you to survive on your savings. Possibility Planning allows you to thrive with wealth-building strategies.

Your Retirement Plan Is a Choice—Which Rules Will You Follow?

Most people blindly follow outdated financial rules—rules that keep them working longer, fearing market crashes, and hoping their money lasts.

But hope is not a strategy. The wealthy don’t leave their future to chance.

You can choose to follow:
⚠️ The Survival Plan—where uncertainty, tax burdens, and market volatility control your financial future.
✅ The Possibility Plan—where your wealth is protected, your income is secured, and your future is designed for growth, not fear.

If you want to follow a different path in retirement, book your Free Possibility Plan here

Your financial future isn’t determined by luck—it’s determined by the rules you choose to follow.