BiggerPockets Money Podcast

The 4% Rule Naysayers Are Wrong (We Retired at 47 Using It!)

Feb 7, 2025

In this engaging conversation, Bobby Beck shares his inspiring journey of retiring at 47 using the 4% rule, defying doubts in the FIRE community. He reflects on overcoming the 'One More Year Syndrome' and confidently jumps into retirement despite market volatility. Bobby also discusses his luxurious lifestyle, including traveling frequently while only checking his portfolio monthly. With insights on retirement strategies, tax implications, and smart investing, he offers valuable motivation for anyone considering an early exit from their career.

48:17

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Episode guests

Bobby Beck

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Quick takeaways

Bobby Beck successfully retired at 47 by applying the 4% rule, showcasing its real-world viability despite market uncertainties.

His disciplined investment strategy, focusing on diversified index funds and regular financial assessments, ensures ongoing stability and fulfillment post-retirement.

Deep dives

Understanding Financial Independence and the 4% Rule

Financial independence is achieved by creating an investment portfolio that allows individuals to live off 4% of their savings annually, based on a target amount that is 25 times their annual expenses. Bobby Beck exemplifies this concept, having retired at 47 using the 4% rule after carefully analyzing his finances. He highlights that while reaching financial independence is achievable, it is not always a straightforward path and may require adjustments due to life's uncertainties. Many individuals with similar experiences have found success, often supported by communities like the Facebook group 'Finally Fi', which facilitates connections among those pursuing financial independence.

Intro

4min

Navigating Retirement Amidst Uncertainty

5min

Navigating Real Estate and Financial Independence Net Worth

5min

Navigating Net Worth and Investment Strategies

12min

Momentum 2025: Investing Insights and Tools

5min

Navigating Tax Deductions and Financial Freedom

17min

Does the four-percent rule actually work? On paper, yes. So why don’t more people put it to the test? Today’s guest retired at forty-seven years old and is living proof that the math really does check out. Stay tuned to find out how!

Welcome back to the BiggerPockets Money podcast! Bobby Beck has done what so many in the FIRE community are seemingly unable to do—he actually retired on the four-percent rule! What’s more? He did it while living in the Bay Area, one of the most expensive markets in the US. What gave him the confidence to leave his job and never look back? While “One More Year Syndrome” keeps many people from retiring early, Bobby’s mantra of “take a year” compelled him to take a leap of faith. Even though his retirement portfolio took a sixteen-percent hit right before he retired, he weathered the storm, and sure enough, the market rebounded!

Now, Bobby lives the life people dream of when they discover FIRE. He has a comfy lifestyle, travels multiple times a year, and only checks his portfolio once a month. If you need the motivation to call time on your career and put your retirement date on the calendar, you don’t want to miss this episode!

In This Episode We Cover

How Bobby and his wife retired on the four-percent rule (at age 47!)

Why the FIRE community overestimates how much they’ll owe in taxes

How to beat “One More Year Syndrome” and actually retire early

Growing your brokerage accounts and cash to avoid the middle-class trap

The portfolio allocation that will give you the confidence to retire

And So Much More!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

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