1.) Making contributions to a specific account
2.) Automatically calculating your Required Minimum Distribution
3.) The ability to spend or save a yearly surplus and direct which account you are saving to.
4.) You can now customize your withdrawal order and specify which accounts you are withdrawing from.
Choosing the right retirement planning tool is essential. The Retirement Budget Calculator (RBC) offers a highly customizable and accurate approach, with features like detailed budgeting, inflation adjustments, and AI assistance, making it ideal for those seeking in-depth planning within the next five years. In contrast, Dave Ramsey's Retirement Calculator focuses on helping users determine how much they need to save for retirement, offering a straightforward, simple approach. Your choice depends on your retirement planning needs and your comfort level with financial details.
Recent research has demonstrated the potential advantages of using a bucket strategy for retirement withdrawals. This approach divides funds into time-segmented "buckets" with distinct asset allocations, each regularly rebalanced to maintain its intended strategy. When compared to a traditional 60/40 portfolio, which is also rebalanced annually, the bucket strategy showed significantly better outcomes over a 30-year period. The findings suggest that incorporating both time-segmented investing and regular rebalancing can lead to more effective retirement planning.