The reliance on the 4% rule as a guideline for retirement funding can be problematic due to oversimplification and lack of context. While many endorse it for its perceived safety, biases, particularly confirmation bias, can skew perspectives. Experts in the field highlight that the rule is not universally applicable and caution against treating it as a universal solution. Individual circumstances should dictate financial planning, emphasizing that each situation requires personalized consideration rather than adherence to a generalized heuristic.
We're making changes. Here's what we learned and how our FIRE strategies are changing after talking to "Big ERN" Karsten Jeske, an economist, CFA, and safe withdrawal rate expert. In this episode, we review our take-homes from that conversation, and react to comments and feedback we received about the episode. If you missed the original episode, be sure to listen to Episode 40 first.
Show notes: https://twosidesoffi.com/swr