Is the 4% rule dead? Most FIRE-chasers are using this retirement rule completely wrong, and it could cost them their financial freedom. With stock prices falling and many Americans fearing another recession, now is the time to tighten up your retirement portfolio and ensure you can survive if stock prices correct or crash. If you get this wrong, you could delay your FIRE for years or have to go back to work mid-retirement.The 4% rule is one of the most bulletproof retirement formulas. It’s simple: Build a portfolio from which you can comfortably withdraw 4% annually. Need $40,000 per year to live? Your FIRE number is $1,000,000. Need $100,000 per year? Then you’re looking at $2,500,000. This math has been checked, double-checked, and triple-checked to withstand even the greatest economic depressions. However, most people have their portfolio set up WRONG, and it could put them at significant risk.So, how do you ENSURE you can retire (early) with the 4% rule? What hedges should you make in your portfolio so your wealth stays afloat even as the economic tide starts to turn? What are Scott and Mindy doing now to prepare for a rocky stock market? Don’t miss this one—it could cost you your FIRE!In This Episode We CoverThe 4% rule explained and whether it still works in 2025 and during market downturns Why your FIRE portfolio is WRONG, and it could be at massive risk right now How to prepare for an economic downturn to ensure you stay FIREd or on the path to FIREWhat Scott is selling and buying right now to protect his wealth (will his strategy work?)Alternatives to the 4% rule that will protect your retirement portfolio even during the greatest of depressions And So Much More!Links from the ShowMindy on BiggerPocketsScott on BiggerPocketsListen to All Your Favorite BiggerPockets Podcasts in One PlaceJoin BiggerPockets for FREEEmail Mindy: [email protected] Scott: [email protected] Money Facebook GroupFollow BiggerPockets Money on Instagram“Like” BiggerPockets Money on FacebookBiggerPockets Money YouTube ChannelBiggerPockets Real Estate 1,095 - Scott Trench: How I'm Protecting My Money From “Irrational Exuberance”BiggerPockets Money 120 - Are FIRE Naysayers Bad at Math? Yes. with Michael KitcesThe Rational Investor’s Case Against BitcoinDow Jones - DJIA - 100 Year Historical ChartTry REsimpli, The Only All-In-One Real Estate Investor CRM Software That Helps You Manage Data, Marketing, Sales, and OperationsGet to FIRE Faster with “Set for Life”Sign Up for the BiggerPockets Money NewsletterFind an Investor-Friendly Agent in Your Area(00:00) Is the 4% Rule Dead?(04:39) You CANNOT FIRE with This(11:42) How to Prepare for Downturns(21:12) Assets That Are At Risk(23:17) What Scott’s Buying/Selling(28:29) Alternatives to 4% Rule Portfolio(34:21) Do You Trust the 4% Rule?Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-619Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related