The Financial Samurai Podcast

Helping listeners achieve financial freedom sooner rather than later. Financial Samurai is America's number one personal finance blog and podcast helping you make more money, save more money, and live the life that you truly want.

The 4% Rule: Clearing Up Misconceptions With Its Creator Bill Bengen 11/15/2024

The 4% Rule: Clearing Up Misconceptions With Its Creator Bill Bengen I had the pleasure of speaking with Bill Bengen, creator of the "4% Rule" for retirement planning. Bill has been a reader of Financial Samurai for many years and has always been courteous in the comments section when I write about . So, I figured it was time we had a chat to clear up some misconceptions. For those unfamiliar, the 4% Rule, developed by Bill in the 1990s, suggests that traditional retirees (around age 65) can safely withdraw 4% of their retirement portfolio in the first year—adjusted for inflation in subsequent years—without running out of money over a 30-year period. Misconceptions About The 4% Rule Cleared Up By Bill Bengen Here’s what I learned from Bill that helped clarify the 4% Rule: Not a Hard “Rule”: Bill considers the 4% Rule more of a guideline than a strict rule. He encourages flexibility with withdrawal rates, though it’s often treated as a rigid rule in the public eye. 4% Isn’t Actually Aggressive: Contrary to popular belief, Bill’s data shows that 4% is actually conservative. In his study of 400 retirees since 1926, only one retiree (who retired in 1968) had to stick to a 4% rate to avoid running out of money. The rest withdrew an average of 7% without depleting their portfolios. Adjusting for Inflation: The 4% Rule isn’t static; it adjusts with inflation. For instance, if you start with a $1 million portfolio and withdraw $40,000 one year, you would adjust that amount by inflation the next year to $44,000. This means your withdrawals fluctuate with your financial needs and economic conditions. You can e-mail bill at if you have any questions. Posts mentioned: If you enjoyed this episode please rate, share, and susbscribe. Every review means a lot as every episode takes hours to record, edit, and produce. Thank you! To expedite your journey to financial freedom, join over 60,000 others and subscribe to the . Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. /episode/index/show/financialsamurai/id/33427862

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From Making $2 Million A Year To Quitting His Finance Job With Khe Hy 08/29/2024

From Making $2 Million A Year To Quitting His Finance Job With Khe Hy I speak with Khe Hy, who spent 15 years on and became one of the youngest Managing Directors at BlackRock at just 31. He earned up to $2 million a year—then he quit! His journey mirrors mine in many ways, though he earned significantly more. I thought it would be fascinating to understand why he chose to walk away from such wealth. Could you give up $1-2 million a year in your mid-to-late 30s? I don't think I could. But then again, I sometimes forget just how miserable and unhealthy I felt working on Wall Street. He now spends time with his family, writing his and recording The → The RadReads email newsletter and blog http://radreads.co/join → The Examined Life Podcast https://pod.link/1692585605 If you enjoyed this conservationed, I'd love a share and a positive review. Every review counts! Special Promo: Get A Free Financial Checkup For those with over $250,000 in investable assets who want a free financial checkup, you can schedule an appointment with an (). If you complete your two video calls with the advisor before October 31, 2024, you'll receive a free $100 Visa gift card. With stock market volatility returning and a potential recession on the horizon, it’s wise to get a second opinion from a professional. Illuminate financial blindspots you don't know you have and better optimize your finances. The last thing you want is to be misallocated relative to your financial goals and risk tolerance. When you lose money, you ultimately lose precious time. Again, you can schedule your free financial consultation . If you do not see a link copy and paste this URL in your browser: The statement is provided to you by Financial Samurai (“Promoter”) who has entered into a written referral agreement with Empower Advisory Group, LLC (“EAG”). Click to learn more. Regards, Sam You can join 60,000+ others and subscribe to the free Financial Samurai newsletter . Financial Samurai began in 2009 with the goal of helping readers achieve financial freedom sooner, rather than later. /episode/index/show/financialsamurai/id/32026312