5. Question Conventional Financial Wisdom

We think that when it comes to finances, cookie-cutter rules should be taken with a grain of salt. That’s because these guidelines are made to fit a very large percentage of the population, meaning that they discount more personal aspects of your financial goals.

If you’re talking about portfolios they’ll quote the ‘4% rule’; they’ll bring up ‘100 minus your age’ rule when you’re discussing asset allocations. They’ll also tell you to spend your money in a specific order: taxable accounts first, then tax-deferred, then tax-free Roth accounts.

Always remember to do what’s best for your finances, not what everyone else is doing. You might even find that these rules are dated and sub-optimal in your case. What you should do is take their principles and apply them to your current retirement needs instead of following them to the letter.