Understanding The 4 Percent Rule

Are you worried about withdrawing too much money from your accounts in retirement? Nathan explains the 4 Percent Rule and why it's been a proven strategy for determining retirement distributions. But first, join us as we unpack the latest headlines in the news.
Share this episode with a friend:

Today’s Question:

Are you worried about withdrawing too much money from your accounts in retirement? Nathan explains the 4 Percent Rule and why it’s been a proven strategy for determining retirement distributions. But first, join us as we unpack the latest headlines in the news.

In The News:

2:22 Trade War With China

  • Nathan says ultimately it’s good; what they’re trying to do is get free trade.
  • Similarly to when we had the trade wars in the ‘70s, it will probably be a while before we get something settled.
  • If you’re allocated right, you should be expecting this type of volatility.

The Confidence Corner:

6:47 The 4 Percent Rule

  • When you retire, if you’ve got a nest egg saved, this rule says you’re probably safe to withdraw 4 percent from it every year.
  • In the 1990s, Bill Bengen wrote an article based on studies of distribution rates that worked.
  • Even now, the 4 percent rule works if you have a diversified account.
  • If you’re in large cap stocks then you didn’t make 4 percent, so diversification is important to have in retirement as you’re taking distributions.
  • Looking over the past 40 years, 4 percent has worked. It even worked during the Great Depression.
  • The report was run based on numbers as far back as 1926.

A Point Of Wisdom:

Additional Resources:

Bill Bengen Article

Schedule A Meeting

Download Your Retirement Rescue Toolkit Learn More About Our Firm

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend:

EXPLORE MORE EPISODES

How To Successfully Climb The Retirement Mountain

Ready for an adventure? Sometimes climbing a mountain is full of adventure, and sometimes it’s more about being prepared. You have to get the proper gear, get used to using it, and practice before you summit a major mountain. Doing something step by step over time may be boring at times, but it helps you get to the goal. The same is true with saving for retirement.

Listen Now »

The Financial Cereal Bowl

What can we learn about retirement planning from browsing the cereal aisle at the grocery store? We love finding relatable ways to teach about financial topics, so let’s scoop up a few bites of financial understanding on today’s show.

Listen Now »

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

SUBSCRIBE