Michael Kitces – The 4% Rule and Financial Planning for Early Retirement


Manage episode 185936718 series 30336
By Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio streamed directly from their servers.

One of the internet’s most-respected retirement researchers and financial planners, Michael Kitces, joins me for an episode of the Financial Independence Podcast!

You may remember that my Safe Withdrawal Rate post drew heavily from the incredible research Kitces has done on the topic so it was great to talk to him directly to dive even deeper into important topics related to early retirement.

During the interview, we discuss…

  • Safe Withdrawal Rates and whether the 4% rule is still safe in the current market environment
  • The unique challenges early retirees face that normal retirees don’t (and also some of the unique advantages early retirees have)
  • How Michael tackles early retirement from a financial planning perspective

If you’re worried about figuring out how much you can withdraw from your portfolio after you retire, this episode is for you!


  • Why Michael began researching safe withdrawal rates
  • What the Shiller CAPE is and how it can be used to determine a better safe withdrawal rate
  • Why the initial criticism of the 4% rule was that it was too low
  • What would be a safe withdrawal rate to use today, considering current market valuations
  • Human capital vs. financial capital and the advantages of having both
  • How to find a financial advisor and what Michael would do if a client came to him with early retirement plans
  • The biggest wild card that early retirees need to be concerned with that standard retirees don’t

57 episodes available. A new episode about every 43 days averaging 50 mins duration .