BiggerPockets Money7 Nov 2022

351: Does the 4% Rule Hold During 2022's Stock Market Crash?

Stock market crashes aren't good news for anyone. For retirees though, this dip in prices can feel like a death wish, as active income is no longer an option. Have the hopes and dreams of financial flexibility gone out the window? Or is a market crash like we're experiencing today just a small blip on a retiree's radar? Pairing this with inflation, how will someone who has just retired make it?

We’ve got Michael Kitces, retirement planning expert and financial genius with enough acronyms coming after his name to spell out the alphabet, on the show to answer whether or not retirees are in trouble. Michael has advised his clients for decades on the right way to save and invest for retirement. He’s been a proponent of the 4% rule and was bold enough to hold his claim even during the flash crash of 2020. But, with such high inflation and stark drops in equity values, does he still agree with his past predictions?

Michael takes us on a trip down memory lane, visiting some of the worst financial crises in American history, showing how they compare to today. He also proposes that holding large amounts of cash, even during high inflationary times, isn’t the worst move to make, and whether or not he’s still investing as the market finds its bottom. If you’re worried about retiring during times like today, this is the man to listen to!

In This Episode We Cover

The 4% rule explained and whether this sage retirement advice still holds up

How past retirees fared during high inflation, low growth time periods

Which types of market crashes can be “dangerous” to retirees (and who should be worried)

Why some of the brightest minds in personal finance are clinging to cash

Purchasing power and how withdrawal rates are affected by high inflation

The smartest move to make if you’re worried your retirement savings aren’t enough

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Mindy's Twitter

Scott's Instagram

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

Buckingham Wealth Partners

Bill Bengen (The Inventor of the 4% Rule) Talks Retirement, Past Crashes, and How You Can Withdraw Even More!

Original Article from the Journal Of Financial Planning, October 1994

Are FIRE Naysayers Bad at Math? Yes. with Michael Kitces

Click here to check the full show notes: https://www.biggerpockets.com/blog/money-351

Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

Learn more about your ad choices. Visit megaphone.fm/adchoices

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Denne episoden er hentet fra en åpen RSS-feed og er ikke publisert av Podme. Den kan derfor inneholde annonser.

Episoder(804)

From $0 to Financial Independence: Where We'd Start at 25

What would we do if we were 25 years old and starting from $0? In this episode of BiggerPockets Money, Mindy Jensen and Evan Lawler break down a step-by-step plan to build wealth and reach financial i...

14 Okt 30min

The Boring Strategy that Allows Him to Retire at 54 (Median Income)

How do you build a $2 million portfolio and retire at 54 without earning an enormous salary? Mike shares how 25 years of consistent saving, basic investing, and real estate helped him reach financial ...

13 Okt 39min

Did Buying a House Ruin Her Path to Financial Independence?

What if you had $1 million invested for financial independence at just 36, but still worried that buying a home could derail your early retirement plans? Cheryl and her family have two young kids, a $...

9 Okt 46min

Best of BiggerPockets Money: Ben Felix on the 4% Rule

How much can you safely withdraw in early retirement, and is the 4% rule still a good guideline? Ben Felix breaks down portfolio risk, asset allocation, bonds vs. stocks, flexible spending, and the ps...

8 Okt 26min

Is House Hacking Dead in 2026? How to Find Deals That Still Work

Is house hacking still a good strategy for reaching financial independence in 2026? Scott Trench and Evan Lawler break down a real house-hacking opportunity, looking at mortgage costs, cash flow, mark...

7 Okt 31min

How Much Can You Safely Withdraw in Early Retirement? | Christine Benz

How much do you actually need to retire, and once you get there, how do you turn your portfolio into income without running out of money? In this episode, Christine Benz from Morningstar joins us to t...

6 Okt 46min

J Scott Explains Inflation, Interest Rates & the Economy

What is happening with inflation, interest rates, energy prices, and the economy, and what does it mean for investors? In this episode of the BiggerPockets Money Podcast, Mindy Jensen and Scott Trench...

2 Okt 54min

Want to Reach FI Faster? These Careers Give You the Biggest Advantage

What are the best careers for reaching financial independence? In this episode of the BiggerPockets Money Podcast, Mindy Jensen and Evan Lawler explore careers that can accelerate your path to FI. The...

30 Sep 23min