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We discuss the flaws of the 4% rule for determining when you can retire, and go through a better strategy that could allow you to retire sooner and spend more in retirement.
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Timestamps:
0:00 Introduction
0:14 Our Example Couple
0:22 What is the 4% Rule
0:44 4% Rule Example
1:23 Flaw #1: Constant Withdrawals
2:01 Why Constant Withdrawals Don’t Make Sense
2:53 Flaw #2: Sequence Risk
3:05 The Problem With Sequence Risk
3:31 An Example of Sequence Risk
4:33 Flaw #3: Based on Worst-Case Scenarios
5:02 When the 4% Rule is Too Conservative
5:22 Flaw #4: Differing Retirement Lengths
5:54 Summary of 4% Rule Flaws
6:16 Dynamic Retirement Income With Guardrails
6:59 Example of a Dynamic Income Strategy
7:46 How We Determine Withdrawals and Guardrails
8:23 How to Prioritize Saving To Prepare for Retirement
Disclaimer:
Trek Wealth Planning, LLC is an Investment Advisor registered with the States of Missouri and Kansas. This video is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions.