3023: Trouble with the 4 Percent Rule by Jillian Johnsrud on A Flexible Approach to Financial Independence

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Business, Education, Self-improvement

4.4 • 1.3K Ratings

🗓️ 30 January 2025

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

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Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3023: Early retirement enthusiasts often base their plans on the 4% rule, but Jillian Johnsrud highlights the emotional and psychological challenges this approach can create. By exploring how transitions like leaving work can disrupt the satisfaction of earning and saving, Jillian advocates for a more personalized and flexible approach to financial independence. Her insights empower listeners to design retirement strategies that align with their values and happiness, instead of rigid formulas. Read along with the original article(s) here: https://www.jillianjohnsrud.com/trouble-with-the-4-rule/ Quotes to ponder: "A plan that felt a little more palatable when the time comes to leave your 9-5 job." "Transitions deregulate us. Every time." "You can have 100% confidence in the 4% rule and still not enjoy pulling out 4% a year." Episode references: Tickets to EconoMe Conference: https://economeconference.com Learn more about your ad choices. Visit megaphone.fm/adchoices

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1:17.5	Subscribe to the average Joe now. This is Optimal Finance Daily. Trouble with the 4% rule by Jillian
1:26.6	Johnsrude of Jillianjohnsruid.com.
1:30.0	Over the past two years, I've been in the unique position to talk with and consult dozens of people who are considering retiring early or are one to two years into their early retirement.
1:41.6	Not glossy media coverage of how awesome early retirement is, but in-depth
1:46.4	and private conversations. I love that people are seeking financial independence, but I have a
1:52.5	bone to pick with the 4% rule. The history of the 4% rule is based on stock market calculations
1:59.5	ran in different scenarios. The math is very compelling.
2:04.1	No matter when you retire, you are safe to pull 4% of your stock portfolio and run very little
2:09.8	risk of ever running out of money. I have 0% issue with the math behind the 4% rule. Ah, if only life were as simple as math. Therein lies the
2:20.8	trouble with the 4% rule. It's all math and doesn't deal with how we feel when the rubber
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