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Replace Your Paycheck Workbook
Most retirement calculators hand you a number without showing you the math. The Replace Your Paycheck Workbook shows you every step — so you can check the calculation yourself, adjust it as your situation changes, and arrive at a retirement income target you actually trust.
What the Replace Your Paycheck Framework Is Built On
The Replace Your Paycheck framework is built around one foundational question: how much can you withdraw from your savings each year without running out of money before you run out of retirement?
The answer we use comes from the Trinity Study, a landmark piece of withdrawal-rate research published by three finance professors at Trinity University. Their findings identified the withdrawal rates most likely to sustain a portfolio across a 30-year retirement under a range of market conditions. We apply that research through our proprietary 25/4 Rule, a plain-math calculation designed to produce a monthly retirement income target from your current savings.
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Adjusting the Withdrawal Rate to Fit Your Situation
The 4% rate is the research-backed starting point, not a fixed rule. Depending on your retirement timeline, your income sources, and your risk tolerance, a different withdrawal rate may be more appropriate for your plan.
- 3% withdrawal rate: A more conservative approach suited to longer retirements, higher uncertainty about future expenses, or clients who want a larger cushion against sustained market downturns.
- 4% withdrawal rate: The rate supported by Trinity University research as sustainable across a broad range of 30-year retirement scenarios. A reasonable starting point for most pre-retirees.
- 5% withdrawal rate: Appropriate when a client has meaningful supplemental income from Social Security, a pension, or rental income that reduces dependence on portfolio withdrawals.
- 6% withdrawal rate: A higher withdrawal rate that may be considered when the retirement timeline is shorter or supplemental income covers a significant portion of monthly expenses. Carries more sensitivity to sequence-of-returns risk and should be modeled carefully.
The workbook includes worksheets for each rate so you can run your own numbers at multiple scenarios before deciding which fits your situation.
How the 25/4 Rule Works
The 25/4 Rule is a three-step calculation. Here is how it works:
Step 1:
Multiply Your Target Monthly Income by 25
Take the monthly income you want in retirement and multiply it by 25. This gives you the total portfolio size needed to sustain that income at a 4% annual withdrawal rate.
Example: $5,000 per month × 25 = $125,000 annual income target
Step 2:
Apply the 4% Withdrawal Rate
Multiply your target annual income by 25 to arrive at the total savings required. This reverses the calculation and tells you the portfolio size your monthly income target demands.
Example: $60,000 annual income ÷ 4% = $1,500,000 required portfolio
Step 3:
Convert to a Monthly Retirement Paycheck
Divide the annual withdrawal amount by 12 to confirm your monthly retirement income figure and compare it to your current expenses.
Example: $60,000 ÷ 12 = $5,000 per month
What's Inside the Replace Your Paycheck Workbook
The workbook is a printed, step-by-step guide to calculating and stress-testing your retirement income target. It covers:
- The full 25/4 Rule calculation with worked examples
- Worksheets for running your numbers at 3%, 4%, 5%, and 6% withdrawal rates
- A framework for identifying the three accounts that form your retirement income structure
- Guidance on how tax-efficient distribution sequencing affects your monthly take-home income
- A plain-language explanation of how investment management, retirement planning, and tax strategy connect inside a complete retirement plan
How the Workbook Connects to Your Full Retirement Plan
The Replace Your Paycheck Workbook is the starting point, not the finish line. The calculation it produces becomes the target we build your full retirement income plan around, coordinating your investment portfolio, your tax strategy, and your distribution sequencing so every decision serves the same number.
If you work through the workbook and want to talk through what you find, a first consultation is free and starts exactly where the workbook leaves off.
Frequently Asked Questions
What People Ask About Retirement Withdrawal Rates and the 25/4 Rule
How does the 25/4 Rule work for retirement withdrawals?
The 25/4 Rule is a three-step calculation that converts your monthly income target into a required portfolio size using a 4% annual withdrawal rate. Multiply your target monthly income by 12 to get your annual income need, divide that by 4%, and the result is the total savings required to sustain your retirement paycheck. The workbook walks through each step with worked examples and adjustable worksheets.
What is the Trinity Study and why does it matter?
The Trinity Study is a landmark piece of academic withdrawal-rate research produced by three finance professors at Trinity University. Their analysis identified the withdrawal rates most likely to sustain a portfolio across a 30-year retirement under a range of historical market conditions. The 4% rate at the center of the 25/4 Rule comes directly from that research.
Is a 4% withdrawal rate still considered safe?
The 4% rate remains the most widely cited research-backed starting point for a 30-year retirement. Whether it is the right rate for any individual depends on their portfolio size, income sources, retirement timeline, and risk tolerance. The workbook includes calculations at 3%, 4%, 5%, and 6% so you can model your specific situation rather than rely on a single figure.
Is this a free retirement income worksheet I can download without scheduling a call?
Yes. The Replace Your Paycheck Workbook is available as a free download with no consultation required. Download it, work through it at your own pace, and schedule a conversation when you are ready to talk through what you found.
How is the Replace Your Paycheck framework different from a generic online retirement calculator?
Most online calculators produce a number without explaining the method behind it. The Replace Your Paycheck Workbook is a printed framework that shows every step of the calculation, allows you to adjust the withdrawal rate across four scenarios, and connects your retirement income target to a coordinated plan for investments, tax strategy, and distribution sequencing. The math is transparent and checkable at every step.
Contact
Run Your Numbers. Then Let's Talk.
Download the workbook, work through the 25/4 Rule at your own pace, and come to a first consultation already knowing your retirement income target. The math is yours to keep either way.