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Talking Real Money - Investing Talk

Could the "4% Rule" still apply if you retire early?

Talking Real Money - Investing Talk

Don McDonald

Business, Education, Investing, How To

4.2680 Ratings

🗓️ 7 March 2019

⏱️ 10 minutes

🧾️ Download transcript

Summary

As a "rule-of-thumb" the "4% Rule" has stood the test of time, but could it work for FIRE followers? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

Reality Radio for a really great future.

0:07.9

We're talking real money.

0:10.7

Welcome once again to Talking Real Money Daily.

0:12.9

I'm Don McDonald.

0:14.4

Today's episode is going to be a bit short because I'm going to a convention over the next few days on podcasting.

0:23.2

And, you know, this is a podcast too.

0:25.3

So I wanted to remind you that any time you want to call, give us a call at 855-935-

0:29.4

talk with your questions, 855-9358255.

0:33.0

Or visit us at Talking Real Money.com.

0:35.8

You can send them in that way too.

0:39.0

Questions about anything financial,

0:47.0

but particularly about investing because that's the primary focus of what we do. Today, real quick show, just wanted to talk about something that I was reading about online. There are a lot of these

0:51.6

podcasters. I know I went to Fy Fest or FinCon, that was it, FinCon.

0:57.8

And then I have this other podcast convention.

0:59.9

A lot of these podcasters are fire advocates.

1:04.3

These are folks who want to retire early.

1:08.7

Financial Independence retire early.

1:10.6

That's what buyer stands for.

1:12.4

And one of the discussions I saw was there's this thing called the 4% rule. And it is a rule of thumb, not a hard and fast rule that is unbreakable. It's a rule of thumb.

1:23.5

When you retire, you can reasonably take, or you should be able to reasonably take,

1:31.1

4% of your portfolio if it's invested every year, adjusted for inflation, and probably not run out

1:39.8

of money.

...

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