Is the 4% rule DEAD?

BiggerPockets MoneyMay 20, 20250m 55s4.4K viewsScore 70
Pricing & Profitability
intermediate
Profitability
Revenue Management
M

Summary

AI-generated

The video discusses the 4% rule as a well-researched and documented approach to determining how much is enough for early retirement, especially if you have a 60/40 or 70/30 to 50/50 stock-bond portfolio. The speaker suggests viewing the 4% rule as a starting point, working longer to build a portfolio that produces an excess of cash flow, where you spend a minority of it to fund your life.

Key insights

  • The 4% rule is best suited for those who can stomach the idea of selling principal.

Mistakes to avoid

  • Don't blindly follow the 4% rule if you are uncomfortable with the idea of selling principal; instead, view it as a starting point and adjust your savings and withdrawal strategy accordingly.

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial