The 4% rule gets talked about like gospel in retirement planning. But let’s be honest, it’s always been more of a rough guess than a golden rule. Now, its original creator is revising it to 4.7%. So, does that mean your retirement paycheck just got a raise, or is this just another headline that oversimplifies a complex decision?
In this episode, we dive into why the number is changing and what it really means for your retirement strategy. We explore the history of the rule, how market trends and asset allocations play a role, and what retirees should actually consider before making any moves.
Here’s some of what we discuss in this episode:
💡 The basics of the original 4% rule
📈 What’s changed in the 2025 update
🚦Why this isn’t a green light to spend more
📝 What hopeful retirees should take away from this change
0:00 – Intro
1:42 – The original 4% rule
4:00 – The 2025 update
6:16 – Should you adjust your strategy?
7:47 – Was the 4% rule wrong?
9:25 – What factors matter more?
11:12 – Your personal safe withdrawal rate
4% Rule Update Article: https://www.investors.com/etfs-and-funds/retirement/four-percent-rule-for-retirement-new-withdrawal-rate/
Resources
Get your copy of Power Up Your 401K in our toolkit: https://keap.page/ngt919/toolkit.html
Follow along on YouTube: https://www.youtube.com/channel/UCEE5ZkDedYTsKzkh2UxQ9Sg
Book your 401(k) Onboarding Meeting with Steve: https://calendly.com/steven-powerhouse-advisor/401-k-retirement-meeting-1-hour-clone?month=2024-12
Other ways to get in touch:
Phone: (775) 266-8867
Our website: https://powerhousefinancialadvisors.com/
LinkedIn: https://www.linkedin.com/company/powerhouse-financial-advisors/
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