Why the 4% rule is a TERRIBLE idea for early retirees!

The 4% rule is a widely used rule of thumb for determining the size of one's nest egg needed to retire. In this video, I will explore the limitations of the original paper and show you why the 4% rule is a TERRIBLE idea for early retirees!
#financialplanning #fire #the4%rule

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🛎️Disclaimer: Some of the links above are affiliate links, where I earn a small commission from your purchases at no additional cost to you. The content of the videos is for educational & entertainment purposes only and merely my opinions. I am not a financial adviser. All investments involve some risk, and there is no guarantee that you will succeed. To make the best financial decisions that suit your own needs, you must conduct your own research and seek the advice of a licensed financial adviser if necessary.

Chapters:
00:00 Intro
01:06 What is the 4% rule?
02:18 Monte Carlo Simulation
04:22 The problems of the 4% rule
09:11 What strategy should FIRE investors consider?

[Woodland]

Working very hard, living very poor to achieve FIRE, then sit back to do nothing despite possessing the ability to achieve a lot, does not compute. If I retire I would be doing Obesity FIRE and covering with multiple sources of passive income to achieve 100% success. Plus I actually like my work anyway, so going to work is not a burden.

[TonyDitria]

Usual informative video Irene 🥇As i am 64 and gearing up for retirement and have a SMSF, would love a video on advise on weather as i am selling dud stocks and investing in quality divided stocks mostly with franking credits is the way to go..??? keep your great work helping others with your great videos..👋👋

[nav]

Can you please tell me what is your views about ‘tax on earnings in Super’ during accumulation phase. Do you think it will affect compounding a lot in long term?
Does it mean we should invest outside of super in early stages of life??

[bilders]

Annual expenses of $25, 000 for a family 😂 sign me up for wherever that's possible!

[Bokgat]

To be perfectly honest, most of the clowns trying to sell the “live on 4 pct “ by earning 4 pct really on the fact that they don’t understand how to understand a financial study. The sheep that haven’t understood it are trying to see it to more that don’t understand either. It’s all designed to con a few lazy people out of a few dollars. Of course you are correct Irene. Thx for posting