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Retirement Risk Stress Test Prompt for Claude

Run a full retirement risk analysis covering sequence-of-returns risk, safe withdrawal rates, and inflation impact — the kind advisors charge $1,500 to model.

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Prompt 4: The Retirement Risk Stress Test Paste this into Claude word for word: "Act as a retirement risk analyst and fiduciary advisor. I am planning to retire at age [age] with a portfolio of $[amount]. I plan to withdraw $[monthly amount] per month to cover my expenses in retirement, which I expect to last [number] years. My portfolio is currently allocated [allocation breakdown]. I am relying on Social Security starting at age [age] for an estimated $[monthly amount] per month. Run a complete retirement risk stress test on my plan that covers the following scenarios: What happens to my portfolio if the market drops 40% in my first year of retirement, which is called sequence of returns risk, and how do I protect against it? Whether my withdrawal rate is safe based on the 4% rule and its limitations, and what a more conservative safe withdrawal rate looks like for my situation. How long does my money actually last under three scenarios: a good market environment, an average one, and a bad one? What is the real impact of inflation at 3%, 4%, and 5% does to my purchasing power over 30 years? And what specific guardrails, buffer strategies, or income floors I should put in place to make sure I never run out of money. Give me a specific risk mitigation plan, not just a diagnosis." What you get: A sequence-of-returns risk analysis and withdrawal strategy that fee-only advisors charge $1,500 to model.

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Run a full retirement risk analysis covering sequence-of-returns risk, safe withdrawal rates, and inflation impact — the kind advisors charge $1,500 to model.

Prompt

Act as a retirement risk analyst and fiduciary advisor. I am planning to retire at age [age] with a portfolio of $[amount]. I plan to withdraw $[monthly amount] per month to cover my expenses in retirement, which I expect to last [number] years. My portfolio is currently allocated [allocation breakdown]. I am relying on Social Security starting at age [age] for an estimated $[monthly amount] per month. Run a complete retirement risk stress test on my plan that covers the following scenarios: What happens to my portfolio if the market drops 40% in my first year of retirement, which is called sequence of returns risk, and how do I protect against it? Whether my withdrawal rate is safe based on the 4% rule and its limitations, and what a more conservative safe withdrawal rate looks like for my situation. How long does my money actually last under three scenarios: a good market environment, an average one, and a bad one? What is the real impact of inflation at 3%, 4%, and 5% does to my purchasing power over 30 years? And what specific guardrails, buffer strategies, or income floors I should put in place to make sure I never run out of money. Give me a specific risk mitigation plan, not just a diagnosis.

Why it works

The prompt assigns a high-credibility professional role (fiduciary advisor) and then forces the model to apply five specific analytical frameworks in sequence — sequence-of-returns risk, safe withdrawal rate theory, scenario modeling, inflation sensitivity, and guardrail strategies. This structure prevents the model from giving generic retirement advice and instead channels it into a disciplined stress-test format. By requiring three distinct market scenarios (good, average, bad) and three inflation rates (3%, 4%, 5%), the prompt compels the model to produce a range of outcomes rather than a single optimistic projection. This mirrors how professional Monte Carlo analysis works, even without running actual simulations. The closing instruction — 'Give me a specific risk mitigation plan, not just a diagnosis' — is a critical constraint. It forces the model past descriptive output into prescriptive recommendations, which is where the actionable value lies. Without it, LLMs tend to explain risks without resolving them.

When to use

  • You are approaching retirement and want to pressure-test your withdrawal strategy before leaving your job
  • You want to understand how a bad first year of returns could permanently damage a fixed withdrawal plan
  • You need to evaluate whether your current portfolio allocation is appropriate for a 20–30 year retirement horizon

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