For decades, the 4% rule) has been the calculation every FIRE chaser has used to determine when they can** retire early)—risk-free**. The math is simple: have a portfolio big enough to withdraw 4% per year to fund your lifestyle. But there’s one BIG problem with the 4% rule that nobody is talking about—a problem that could force you to work longer,** ruin your retirement **lifestyle, and put your portfolio in jeopardy if you don’t plan carefully. Tyler Gardner, former portfolio manager and financial advisor, is back on the show to share why much of **the FIRE community may be wrong **about this “rule.”
Scared of not having enough to retire, retiring during a market crash, or being forced to be frugal once you leave the workforce? That’s precisely what we’re talking about in today’s episode. The 4% rule has become untouchable within the FIRE movement), but its hard-and-fast downsides may lead to your FIRE’s demise.
Tyler shares what he thinks is** the ultimate FIRE portfolio allocation**, why he’s way more bullish on stocks and index funds than bonds, EVEN during retirement, and why target date retirement funds—often scoffed at—can actually help** protect your portfolio** once you FIRE. If you’re planning on retiring early with the 4% rule, think again. All of us have our doubts, and we’re sharing them today.
In This Episode We Cover
Why** the 4% “rule” is WRONG** for most FIRE chasers, and why withdrawing only 4% could be a mistake
The** new (updated!) **FIRE number) that most people should be chasing
Hate your job)** **and want to retire early? Here’s why you should find a better career (NOT quit) instead
The** ultimate FIRE portfolio allocation** and why a target date retirement fund actually makes sense for many
And **So **Much More!
Links from the Show
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(00:00) Intro (02:05) Is the 4% Rule Wrong?(06:05) This Saves Your FIRE (10:09) “One More Year” Syndrome(14:33) Healthcare in Early Retirement(16:34) Ultimate FIRE Portfolio Allocation(24:29) Include Real Estate?(29:49) Target Date Retirement Funds(36:25) Don’t Quit Working? (54:30) Find a Job You LOVE(57:02) Connect with Tyler!(58:30) FIRE Chasers Are Wrong!
Check out more resources from this show on BiggerPockets.com) and https://www.biggerpockets.com/blog/money-637)
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