Safe Withdrawal Rate Myths: Debunking 3 Common 4% Rule Mistakes

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5M ago 20:00

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The 4% rule helps us understand how much we can safely take out of our portfolio each year without running out of money in retirement.
Yet, as simple as the 4 percent rule seems, the practical implications are drastically misunderstood. I explore the three common mistakes people make when applying this rule and how to avoid them.
Questions Answered:
How do RMDs impact the 4 percent rule?
Does the 4 percent rule account for changes in expenses and income sources?
Timestamps:
0:00 - Questions from listeners
1:26 - Misconception 1 - RMD
3:27 - 4% rule applies to portfolio
5:51 - Assumption of 30 years retirement
7:51 - Misconception 2 - annuity distributions
10:01 - An example
12:33 - Misconception 3 - static cash flow
13:42 - Examples of changes
17:44 - Summary

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Chapters

1. Common Mistakes With the 4% Rule (00:00:00)

2. Misconceptions About Retirement Rules (00:03:51)

3. Misconceptions and Considerations of Retirement Income (00:10:14)

4. Disclaimer and Consultation for Financial Advice (00:19:00)

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