62. Is the 4% rule for early retirement still relevant?

Is the 4% rule still relevant, or has the FIRE movement outgrown it? In this episode, Hayden and Dave break down where the 4% rule came from, why it’s often criticised, and how it actually holds up for early retirees.

They unpack the assumptions behind the rule and explain why flexibility, adaptability, and behaviour might matter far more than the percentage itself.

In this episode they cover:

👉 Where the 4% rule comes from and what it was designed to solve

👉 Why early retirees worry about longer time horizons and sequence risk

👉 Whether strong recent returns make the rule less reliable

👉 How flexibility around spending dramatically improves success rates

👉 What different “flex rates” mean for sustainable withdrawal levels

👉 Portfolio allocation considerations for long-term retirees

👉 The psychology of living off a portfolio during market downturns

👉 Practical tools like cash buffers and automated selling

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Disclaimer

Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.

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