Big ERN: The 2025 Safe Withdrawal Rate for FIRE (It’s NOT 4%)

BiggerPockets MoneyMay 23, 202553m 51s19.7K viewsScore 85
Pricing & Profitability
advanced
safe withdrawal rate
FIRE movement
retirement planning
portfolio diversification
sequence of return risk
M

Summary

AI-generated

This episode challenges the traditional 4% safe withdrawal rate for retirement, especially for early retirees with longer horizons. Learn how inflation, market volatility, and personal circumstances necessitate a personalized approach to withdrawal rates and portfolio management for true financial independence.

Key insights

  • While bonds offer normalized yields (4%+), over very long retirement horizons (40-60 years), relying too heavily on bonds can hinder necessary growth, suggesting a balanced approach is needed.

Mistakes to avoid

  • Relying solely on the 4% rule without considering personal circumstances, longer retirement horizons, or current market valuations can lead to insufficient funds and early depletion of retirement savings.

Tools & resources

  • BiggerPockets Money Podcastpodcast

    BiggerPockets Money podcast offers discussions on financial independence, retirement, and personal finance topics.

Frequently Asked Questions

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