Is the 4% Rule Too Safe? Ep #351

Retirement Starts Today

The 4% rule is the “golden rule” of retirement planning. Everyone is familiar with it and it’s easy to work out for some quick, back-of-the-napkin math.

Since it is so easy to calculate and implement, many use it as their retirement withdrawal rule. However, this approach may be overly conservative. While using a significantly higher withdrawal rate may go too far, the 4% rule may be too cautious.

Listen in to hear the limitations of sticking with this overly simplistic rule of thumb.

Outline of This Episode

• [2:02] Is the 4% rule too safe?
• [10:50] Does it make sense to spend more in the early years while awaiting full retirement age?

Resources & People Mentioned

• The Retirement Podcast Network
• Think Advisor article

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