4% Rule Problem and How to Solve It Before Retirement

The 4% rule is a popular way to estimate the size of your retirement portfolio. But did you know that the rule can fail? In this video, I discuss all you need to know and what to do to maximize your success rate of the 4% rule in retirement.

The seminal study from Trinity University came up with the 4% rule. The rule says that your portfolio size in retirement should be 25x of your annual living expenses. But, the rule can fail you due to incorrect allocation, higher withdrawal rates and lower future returns. Low returns was the most decisive factor of them all. In this video I discuss a cash cushion strategy that can help you weather low returns, especially when retiring into bear markets.

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Check out my blog post on this topic:
✔️ https://andriyblokhin.com/4-percent-rule-retirement/

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Related Content:
▶︎ Problems with Dividend Stocks and How to Avoid Them: https://youtu.be/4RkVSYvXK9U
▶︎ The 1 Best Growth ETF to Hold Forever, If You're Young: https://youtu.be/XJSlhFKGnKo
▶︎ Can Dividend Stocks Beat the Market?: https://youtu.be/qZt2tF3hyS0
▶︎ Dividend Taxation: https://youtu.be/MO5Idh4gdPQ
▶︎ How to Analyze Dividend Stocks: https://youtu.be/Ii-qM5v8Nis

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Timestamps:
00:00 - Intro
01:25 - Future Returns for 4% Rule
01:55 - Determine Market Recovery Time
03:55 - Cash Cushion Stash Fund
04:47 - Where to Keep Cash Stash Fund?
06:32 - Lower Cash Stash Fund with Dividends, Interest
10:35 - Passive Income, Earned Income, Lower Expenses in Retirement
11:44 - Outro
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If you'd like to learn more about investment valuation, consider a book by McKinsey & Co, which is one of the best valuation books I came across:
▶︎ "Valuation" by McKinsey & Company: https://amzn.to/46tSbs6

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This video content is for informational purposes only and should not be viewed as legal, tax, investment or financial advice. Please, do your own due diligence and keep your money safe.

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