Part 5/9:
If the traditional 4% rule does not align with your retirement goals, here are three alternative approaches that may better suit your financial needs:
Ratcheting Strategy
This strategy, devised by financial planner Michael Kitces, allows retirees to increase spending during favorable market conditions. With the ratcheting strategy, retirees initiate retirement spending at the 4% level but retain the option to raise this spending when their portfolio performs well.