I’m not going to change the way I look or the way I feel to conform to anything. I’ve always been a freak. So I’ve been a freak all my life, and I have to live with that, you know. I’m one of those people. – John Lennon

A topic that often comes from time to time at our dinner table is why we have certain religious practices that others don’t have. My older kids will badger me with comments like, “No one else does these things, so why do we have to?” is the general attack.

I explained that certain customs have been passed down through multiple generations, and we should keep the chain alive, and other practices are to be found easily in the Shulhan Aruch (Code of Jewish Law), and it’s not my problem that not everyone knows the law. Not sure those answers were good enough to defeat the cry of “why can’t we just be like everyone else!”

Too often, people just accept certain mantras as truth, without ever questioning the logic behind them. Rabbi Jonathan Sacks, of blessed memory, in a piece titled “The Courage Not to Conform,” wrote, “Leaders lead. That does not mean to say that they do not follow. But what they follow is different from what most people follow. They don’t conform for the sake of conforming. They don’t do what others do merely because others are doing it. They follow an inner voice, a call. They have a vision, not of what is, but of what might be. They think outside the box. They march to a different tune.” 

Never was this more dramatically signaled than in the first words of God to Abraham, the words that set Jewish history in motion: “Leave your land, your birthplace, and your father’s house and go to the land that I will show you” (Genesis 12:1). Why? Because people do conform. They adopt the standards and absorb the culture of the time and place in which they live – “your land.” At a deeper level, they are influenced by friends and neighbors – “your birthplace.” More deeply still, they are shaped by their parents, and the family in which they grew up – “your father’s house.”

For Abraham, or as US President Donald Trump refers to him, “Avraham,” to lead and preach monotheism, he had to make a clean break from his land, birthplace, and father’s house.

As I have mentioned numerous times, the financial media pushes its own version of conformity. Namely, needing 80% of pre-retirement income to retire and drawing down 4% of your portfolio annually. In fact, while writing this, I actually just googled how much income is needed in retirement, and the answer from the AI overview was, “There is no one-size-fits-all answer, but a common rule of thumb is to save enough so you can withdraw about 80% of your pre-retirement income each year.”

How much income does one really need in retirement? Do the same search that I just did, and you will get answers ranging from 75-80% of your pre-retirement income. This is caused by lower tax rates, no more money being fed into retirement accounts, and no more mortgage. 

Unfortunately for many retirees, especially those retired in Israel, this number has little basis in reality. Rarely do any of these articles mention the need to plan based on your specific situation. They always put forth a cookie-cutter solution, which isn’t relevant for many.

When a couple retires, they will often find that their expenses are different. It is therefore important to sit down and make a realistic new plan based on these changes. I am a bit more cautious with my clients as I apply a basic equation: Leisure=money spent.

After retiring, people find themselves with more free time, and they may want to use it to travel (if there are countries that Israelis can comfortably still travel to!), eat out, or for other leisure activities. It may mean taking the whole family away for a few days at the end of August or for Hanukkah. 

Then there is the other issue. We all know that “making it” in Israel isn’t so easy. Many retirees that I sit with have an immediate goal of helping out their children as well. That help can take the shape of paying for extracurricular activities, braces, or direct financial help, and let’s not forget “Grandparents Tuesday” (the day that Sabba and Savta pick up their beloved grandchildren and buy them ice cream, falafel, and so on)!

Once you have a handle on your income needs, you should go ahead and create an income stream. Forget about the 4% drawdown rule. In many instances, you can create a portfolio that will be able to generate the income you need without having to draw down principal. Depending on your risk profile, dividend-paying stocks, bonds, and even US government FDIC-insured certificates of deposit can generate the required income. Why draw down principal if you don’t have to?

It’s your retirement. Forget about how others plan. Sit down with an adviser and start figuring out your very own goals and needs, and create an investment plan that’s specific to your situation.

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing. www.gpsinvestor.com; aaron@lighthousecapital.co.il.