Safe Withdrawal Rates, Drawdown Strategies, RMDs and 50 Year FI Timelines

ChooseFI

Brad Barrett | Choose FI Media

Financialindependence, Investing, Firemovement, Passiveincome, Frugalliving, Personalfinancepodcast, Daveramsey, Careers, Business, Earlyretirement, Habits

4.8 • 5K Ratings

🗓️ 8 September 2025

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

ChooseFI unveils a new feature on the website that allows listeners to have their financial independence questions answered by experts. Featuring in-depth discussions with Karsten Jeske (Big Earn) and Fritz Gilbert, the episode explores the ramifications of potentially increasing the safe withdrawal rate and provides critical insights into retirement strategies, including cash flow considerations like Social Security and required minimum distributions (RMDs).

Key Topics Discussed:

Introduction to New Features (00:00:00)
- Introduction of a Q&A functionality on the ChooseFI website for community engagement.
Listener Questions Segment (00:00:36)
- Introduction to the expert answers provided by Karsten and Fritz.
Discussion on Safe Withdrawal Rates (00:05:26)
- Explanation of the traditional 4% rule and its significance.
Karsten's Perspective on the 5.5% Rate (00:07:45)
- Critique of Bill Bangan’s proposed increase in the safe withdrawal rate and why it may be misleading.
Nuances of Early Retirement (00:34:25)
- Insights on adjusting retirement strategies when planning for longer horizons, emphasizing the time value of money.
Fritz on RMDs and Safe Withdrawal Rate (00:36:16)
- Explanation of how RMDs impact withdrawal strategies, highlighting that RMDs apply only to pre-tax accounts.

Actionable Takeaways:

Adjust SWR to account for extended Retirement horizons
Incorporate potential income sources such as Social Security into your retirement planning. (00:35:01)
Carefully consider your asset allocation to manage risks related to early retirement (e.g., sequence of return risk). (00:48:06)

Key Quotes:

"The proposed 5.5% withdrawal rate is misleading and overly optimistic." (00:09:21) - Karsten Jeske
"A safe withdrawal rate must not fall below 3.25% for financial security." (00:35:41) - Karsten Jeske
"Plan for additional income sources like Social Security in retirement." (00:35:01) - Karsten Jeske
"RMDs do not dictate your total spending in retirement." (00:39:00) - Fritz Gilbert
"Behavioral finance warns against the pitfalls of emotional investing." (00:51:16) - Brad Barrett

Timestamps:

00:02 - Invitation to submit questions at choosefi.com/feedback.
00:05 - Introduction of Karsten Jeske and Fritz Gilbert.
00:09 - Discussion on the safe withdrawal rate controversy.
00:35 - Required minimum distributions explained.
00:49 - Dynamic withdrawal strategies overview.

Discussion Questions:

How do you view the proposed increase in safe withdrawal rates?
What strategies are you incorporating to prepare for early retirement?
In what ways can Social Security impact your withdrawal strategy?
How do you reconcile RMDs with your personal withdrawal goals?

Early Retirement Now Blog: Insights into safe withdrawal rates.
Retirement Manifesto: A guide to successful retirement strategies

Transcript

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0:00.0	Hello and welcome to Choose Defi. Today on the show, we have a really fun episode. This is a new
0:05.2	functionality that we've built at Choose ayes website. We talked about this a number of months ago.
0:11.0	I had Jonathan back on the show and we talked about, wouldn't it be cool if? And this is kind of the
0:16.0	second, wouldn't it be cool if episode, which is this is something that I always dreamed of where we get just an incredible amount of questions from you, listeners, community members.
0:26.8	And mostly this has been stuck.
0:29.0	I've been the choke point on this.
0:31.3	And now we have a whole group of friends and experts who are here to answer these questions.
0:36.6	So for you, if you're listening to
0:38.8	this, you have questions on any aspect of FI, any aspect of personal development or health and
0:43.9	fitness, we now have people who can answer these. So chooseavide.com slash feedback. And today,
0:49.5	we're focusing on four questions that came in that Carston from early retirement now and Fritz
0:55.5	from the retirement manifesto were kind enough to answer in great detail.
0:59.3	So we're talking a lot about safe withdrawal rates, withdrawal strategies, required minimum distributions,
1:05.4	and timelines to FI and timelines of your FI path and how many years you can look at a Phi timeline and how do
1:15.3	you think about a safe withdrawal rate over not just a 30 year period but a 50 plus year
1:19.8	period. I think you're really going to enjoy this episode. And with that, welcome to choose
1:24.2	a Phi. Welcome to ChooseFI.
1:32.6	All right.
1:35.9	So this is the first of this type of episode that we've ever done.
1:40.8	Basically, we just added a really amazing functionality at our website.
1:46.3	So if you go to chooseify.com slash feedback, you can ask any type of question you want. So we have already onboarded 11 different experts who are great friends of the show,
1:52.8	who have stood up and said, yeah, I want to help. I know the five community has all these
	...

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