Is the 4% Rule In Play? (SB1702)

The Stacking Benjamins Show

Joe Saul-Sehy and Josh ‘OG’ Bannerman, CFP

Personal Finance, Financial Planning, Education, Retirement, Investing, Cfp, Business, Money

4.4 • 2K Ratings

🗓️ 30 June 2025

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

How much can you really spend in retirement without running out of money—or worse, running out of fun?

In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of the 4% rule, the team explores emerging research that suggests a withdrawal rate closer to 5.5% might be possible—if you’ve got the right mix of investments, a solid plan, and a bit of courage.

But we don’t stop there. Because with greater freedom comes greater risk (especially if you're leading with vibes instead of strategy). The guys tackle the sequence of returns risk that can derail early retirement years, and how to build a portfolio that helps you sleep at night—even during a market storm.

Meanwhile, Doug drops in with an unexpected (and very British) culinary experience, Joe fields a listener question comparing financial plans to workout routines (is your Roth IRA doing enough reps?), and yes... we revisit our fan-favorite segment on how food waste is wrecking your budget.

Why the 4% rule might be too conservative (or maybe just outdated).
What diversified portfolios and asset class strategy have to do with a longer-lasting nest egg.
How to prepare for market downturns before they happen—and what to do if you're already in one.
Why retirement joy isn’t just about spreadsheets—it’s about the psychology of spending with confidence.
Which type of green tea is the superior kind (depending on which side of the TikTok aisle you're on).
How to reduce food waste and put that extra savings toward your bigger financial goals.

If you’re approaching retirement—or even just dreaming about it—understanding how much you can safely spend without sabotaging your future is the question. This episode combines historical insight with today’s market realities to give you the real math and mindset you need to retire well…and maybe even with a smile.

FULL SHOW NOTES: https://stackingbenjamins.com/problems-with-the-4-percent-rule-1702

Deeper dives with curated links, topics, and discussions are in our newsletter, The 201, available at https://www.stackingbenjamins.com/201

Enjoy!

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Transcript

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0:00.0	It's Monday. And you know what that means? Happy non-specific time of day.
0:08.0	Everyone, glad you're here. We had a conversation about robust, awkward.
0:16.9	Nope. Nope. Probably not going to talk about it. No. We didn't have a conversation about anything. Yeah, we didn't do anything. You know, we did have a conversation about, though, was how much our troops mean to us and how they kept us safe all weekend while we were doing the non-specific thing that we are probably not going to talk about. So on behalf, everybody, raise your mugs no matter where you're at.
0:38.2	Come on, unless you're driving your car, they're both hands on the wheel. On behalf of the men and women, make a podcast in mom's basement and the men and women at Navy Federal Credit Union who serve our troops and our veterans, here's two, those people who kept us safe and will continue to do so. Thank you so much. Let's go stack some benjamins now this week, shall we?
0:55.4	Thanks, everybody.
0:56.2	Let's go stack some Benjamin's now this week,
0:54.6	shall we? Thanks, everybody. Let's get it. The English contribution to world cuisine,
1:01.7	the chip. What do the English usually eat with chips to make them more interesting?
1:08.3	Wait a moment. It's fish, isn't it?
1:12.6	Yeah, boy.
1:14.6	Down the hatch.
1:16.6	Ew.
1:17.6	Avoid the green ones.
1:20.6	They're not ripe yet.
1:22.6	Live from Joe's mom's basement, it's the Stacking Benjamin Show.
1:32.3	I'm Joe's Mom's Neighbor, Doug, and have you been using rules of thumb for your budget and long-range planning?
1:47.4	Well, bad news, stackers, the creator of one of those rules says it's outdated and often used incorrectly.
1:54.8	Which rule of thumb will share today and also help you replace it with a better strategy?
2:01.3	Plus, we'll answer a question from one stacker who thought, you know, I'd better call Saul.
2:06.2	See hi and OG.
2:07.8	Tony wonders about sequence of returns risk and his workout routine.
2:12.3	You've called the right guys, Tony.
	...

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