Welcome to the Stay Wealthy podcast. I'm your host Taylor Schulte and today I'm continuing with our retirement income series by diving deeper into the 4% rule, its history and the pros and cons of using it to turn your investment portfolio into a retirement paycheck. To grab the links and resources

mentioned today, just head over to you staywealthy.com forward slash 122. So one of my all-time

favorite quotes about investing is from David Booth, where he says, quote, the most important

thing about an investment philosophy is that you have one that you can stick with.

And I haven't checked with him personally on this, but I think he is really sincere about it,

even if he doesn't agree with the approach that someone is taking.

In other words, if you believe in active stock picking, then own it, master it, and stick with it for the long term. You can be successful.

If you prefer low-cost, passive index funds, then commit to it for the long term and you

will have success. But if you're jumping from stock picking to mutual funds to passive ETS to

hedge funds or annuities and then back to picking stocks again, you're just setting yourself

up for failure. Not only are you likely triggering taxes and transaction fees along the way by

by jumping in and out of investments, but chasing trends and fads have proven time and time again

to lower your investment returns. Even worse, choosing an investment strategy that doesn't

match up with your tolerance for risk can lead to you buying and selling at all the wrong

times, which can absolutely destroy someone's retirement plan and in some cases be almost

impossible to recover from. The same can be said about retirement income withdrawal

strategies. Choosing one that best fits you and your retirement needs and sticking with it

over the long term is going to put you in the best position for retirement success. But that's not

typically what I see when I talk to people and I reviewed financial

plans and meet with new clients. As humans, we constantly feel like we need to be tweaking,

changing, and pivoting. We're hardwired to think that action equals good and inaction equals bad.

One year, it's the 4% rule. And the next year it's dividend stocks and then we get sucked

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