About this episode
The 4% rule helps us understand how much we can safely take out of our portfolio each year without running out of money in retirement. Yet, as simple as the 4 percent rule seems, the practical implications are drastically misunderstood. I explore the three common mistakes people make when applying this rule and how to avoid them. Questions Answered: How do RMDs impact the 4 percent rule? Does the 4 percent rule account for changes in expenses and income sources? Timestamps: 0:00 - Questions from listeners 1:26 - Misconception 1 - RMD 3:27 - 4% rule applies to portfolio 5:51 - Assumption of 30 years retirement 7:51 - Misconception 2 - annuity distributions 10:01 - An example 12:33 - Misconception 3 - static cash flow 13:42 - Examples of changes 17:44 - Summary Create Your Custom Strategy ⬇️ Get Started Here. Join the new Root Collective HERE!