The 4% Rule | How To Achieve Financial Independence

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Information The 4% Rule | How To Achieve Financial Independence

Title	:	The 4% Rule \| How To Achieve Financial Independence
Lasting	:	12.32
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Views	:	138 rb

What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
Comment from : stockRage

How's someone making 36k save 900k? They'd need to live in very low cast state where homes are under six figures
Comment from : Steve Wise

This is my fifth year after retirement I’e been following the 4 rule thing, but this isn’t really how hard I expected things to be After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried
Comment from : Albacus

It's recommended to save at least 15 of your income in a 401k You can use online calculators to estimate how much you should save based on your age and income Saving at least 15 of your income in a 401(k) can help ensure that you have enough money to retire comfortably By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time
Comment from : MIchael Guzman

Love your content, thank you! and appreciated the Mrmoneymustache reference at the end; he is one of the most common sense down to earth thinkers
Comment from : Henry Spragge

This is probably your best video ❤
Comment from : Mark Trail

I think I’ll use 3 instead
Comment from : Scott Mohrman

Year-over-year inflation stood at 65 in December 2022—the lowest that figure has been in more than a year Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us I have approximately $150k stagnant in my port_folio that needs growth What is the best way to take advantage of this downturn?
Comment from : Julie Hyde

The 4 rule has been widely held to be no longer a safe withdraw rate More like 2 Why are you not up to date?
Comment from : Mr Marvelous Mess

If you wanna be successful, you must take responsibility for your emotions, not place the blame on others In addition to making you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability There's always a risk in every investment, yet people still invest and succeed You must look outward if you wanna be successful in life
Comment from : DE Masterossia

If you already have hundreds of shares of stocks, sell call options on them with a strike high enough that it's unlikely to get called You can spend the options premium instead of selling stock to free up money for spending It's not really passive income but spending one day a month to sell monthly options isn't overly hands on
Comment from : Million Mile Drive

Two legends to work with if you want to get rich investing Kim and Gary Joe Wilde
Comment from : Kentucky

Interesting I invested about 500k USD in residential and commercial property in the Philippines That has since doubled in value, and also affords me an income through rental I also invested 100k USD in European and Asian stocks which, over the past 4 years has yielded me about 12 pa I was only expecting 6 max, so that's a plus, although I don't expect it to remain at that level on a long-term basis However, have no debt and my initial investment is protected I retired at 50 and my family and the next 2 generations will have no financial worries
Comment from : Joshua Rizal Foreman

Looking at my 5k nest egg and calculating a taco withdrawal 🧐
Comment from : Yudeok

Begin with rich parents and leverage their wealth into new wealth How does that Powell Memo from 1971 factor into your advice?
Comment from : Kenjiro5775

How would it feel if it were so gratitude now imagination in content live from the answered prayer daily live in the finished pictures proverbs 10 22 teletestai
Comment from : Sammie Joyner

Inflation + 4? Amazing returns brCongrats kkk
Comment from : João Vitor

How do you do those cool sidebars with the text? Is that a plug-in?
Comment from : Kirk Lewis

Is Social Security factored in any of the 4
Comment from : Pat Maiorino

Excellent work
Comment from : David R

Dividend stocks 👍🏼
Comment from : Danilo Buenaflor

Very good advice
Comment from : 모

Is it ok to let like an Edward Jones handle your nest egg and do your 4 distributions or will their fee have to much of an impact?
Comment from : Troy Boulware

I'm a new subscriber and kindred spirit I love your channel Great information
Comment from : Livinginthego Green

The 4 rule is in current dollars though right? So if I wanted to spend $80k worth of current dollars in 2050 I'd need $155k, or a retirement savings of $38M Right?
Comment from : Ty Leisher

And you can add in Social Security to your portfolio once you hit 62 Therefore you can increase the 4 rule
Comment from : pytube777

Thank you! Thank you! Thank you!
Comment from : Another photography channel

Invaluable, quality advice on this channel I've often thought about making a channel like this myself but have convinced myself the time investment is too much right now Tae is providing such rare and desperately needed information to many Hats off to you, and I expect to see you channel's growth grow steadily and incrementally to afford you more than the lifestyle you dream of Tortoise style! Maybe even turbo tortoise style : )
Comment from : Matt Grable

This guy has no idea what he's talking about
Comment from : Don Peace

Yea but… why do you need it to be intact while you are dead? Better take more and have a nice retirement
Comment from : Winters

Very interesting, thank you
Comment from : George Oganisyan

Hi Tae, great video Does the 4 represent a yield or capital growth or both? Obviously you can drawn down if we get a dividend yield or capital growth which we can sell
Comment from : Steven Huynh

Good video! Unfortunately that's what the traditional financial firms have lead the public to believethat essentially you're going to be broke during retirement If you're okay with accepting only 4 of your hard-earned savings during your retirement years, that's a sad reality Per Vanguard, the average 401k balances at age 65 is $280k which means that's only producing $11,200 annual retirement incomeplus you still have to pay taxes brbrI have been educating families financially for almost 10 years If there's a free golden nugget I can share to whomever reads this -- do not mix your investments with your retirement plan Your investments were designed to build your account value; they were not designed to produce the most amount of income In short, your best retirement vehicle is the one that will produce you the most income during retirement Why settle for 4 when there are other options available to you (that the traditional financial firms don't focus on) that can produce more than 4, and better yet, all your distributions are income tax free??brbrPeople don't know what they don't know We have a mission of helping 1 Million families obtain a free financial education in order to create a better financial future for themselves and their loved ones To do that, we have a vision of building 5000 new financial professionals by Dec 31, 2023 If you want to hear more about our movement, have any questions, or if you simply want to have a free conversation, kindly DM @lesliegillissie on IG to set up a brief introduction
Comment from : Marc Gillissie

The most valuable part of this video is where you discuss lifestyle spending In my 20s and 30s, I equated being frugal with eating one’s vegetables In other words, it isn’t fun I eventually read about the 50-30-20 budgeting rule Like healthy eating, it requires discipline to stick to a budget But just like eating healthy, it’s worth it in the long run
Comment from : BigNoseDoggie

Nice summary of the 4 rule Like almost every video about this taxes are ignored Is 4 withdrawal after tax or before ? To achieve 40K a year in your example you would have to take out more to account for your retirement tax bracket Thanks
Comment from : JGKohlenberg

Wow powerful content!
Comment from : Dan Tetreault

Thank you! Please can you do a video on the decision to invest in stocks or buy a house? I'm unsure whether to keep building my stock portfolio or use it as a deposit on a house I think there are many in my position
Comment from : Henry R

I try to follow my personal rule 90 save and 10 spend
Comment from : Marcin81

Tae, I have a fair amount of money invested in a taxable account that pays my broker 75 basis points I think I want to move it to a vanguard account and just buy 2 or 3 index funds How can I do this without generating capital gains? Is it worth it to do this since I will be generating taxable gains? I wish I had started index fund investment from the beginning I am 64 years old
Comment from : Robert Perlmuter

At the start of the video, you mention that you're ignoring considerations like inflation, however this same study did in fact account for inflation The rule is that you withdrawal 4 from your portfolio the first year and adjust that upwards each subsequent year for inflation
Comment from : Loopy McLooperson

Tae Kim it is my honor to be learning so much from you, I mean this from the bottom of my heart I will be 19 on the 31st and started to really ponder about my Financial stability I do not find a loud lifestyle to befit me, so hearing so much about saving rates, financial independence, and early retirement gave me peace of mind You don't prolong the video with useless information and overall terrible advice but form strong constructive advice from years of experience that all can benefit from I'm awestruck at how you have such a low subscriber following when you make things this simpler that it allows me to stay focused as a person who has ADHD Please continue to create positive and well written videos that can save people from a terrible future, thank you Tae Kim
Comment from : Ian King

What a great video I did it slow and it works!!!!!
Comment from : Vision Piping

Love the content
Comment from : Rocknrollchemist

Thanks for these easy finance videos
Comment from : Michael S

Thank you for the great content, always! A question: I've already invested in a high-expense target fund; should I transfer it to lower-expense funds or leave it there until it goes up (it's currently almost the same value as the contribution) and start investing in lower ones?
Comment from : Aya O

Like your content man good stuff and smart/safe good job
Comment from : Whatdatmeans Art

This is wrong with direct bonds… you get your principal back when they’re called… bonds are great for retirement, not bond funds
Comment from : Jonathan Gamble

ty
Comment from : 70 qq

I much rather spend on CDs, you’re likely to get rates that are around the 4 mark and it is FDIC insured Instead of dealing with anxiety that comes with the stock market
Comment from : Daniel Moreno

To me the important point is the expenses after retirement What is one of the biggest - housing So focus on reducing that number goes a long way to reducing the retirement expenses I'm putting extra into my mortgage principle and will have the mortgage paid off by retirement day Not easy for everyone to do but it should be part of the discussion and strategy for success
Comment from : Jim Stoops

Or you can own a real estate portfolio and enjoy rent to price ratio of 4 or more all the while enjoying the steady growth of your portfolio with less volitility
Comment from : D L

To be clear the Trinity Study defined "success" as a portfolio not running out of money A successful allocation/withdrawal combination would not necessarily preserve the original principal account balance
Comment from : nobody

Wouldn’t a higher fund management fee be justified if the fund performs better than an index fund? Meaning, if the managed fund has a track record of outperforming an index fund by more than 2 (eg 12 vs 8-10), it seems like that would justify the fee Am I missing something?
Comment from : Peter Bollwerk

Thank you, I've been looking for the break down of the portfolio in the 4 study for a while and you just answered the question for me at a high level
Comment from : Kenny Downing

I've always wondered -- has the "financial community" such as it is ever revisited the question of asset allocation in light of the idea of index funds? The typical advice is to start out mostly allocated in stocks and shift to safer vehicles as you approach retirement But index funds don't seem to carry the same risk profile as stocks even though that's basically all they are brbrThey can still crash, mind you, but they don't even exhibit the same behavior when they do crash -- they crash less and bounce back quickly, so even if your fund does suffer, it's never for long (I suppose it's possible for an index fund to go belly up, but I can't imagine a scenario where that would happen without other cataclysms rendering it comparatively unimportant) Unless you're living on a razor's edge financially, you can theoretically wait out the crash by reducing your income for a while brbrIn light of this, I wonder if it's really important to diversify into lower risk savings vehicles anymore I'm at least curious what more engaged individuals think about it
Comment from : bvoyelr

Retirement is wonderful if you have two essentials — much to live on and much to live for Invest wisely and get good returns
Comment from : Doris steve

Who wants to die with a million in the bank? I'm going out with a bang
Comment from : JOZoSo

BEWARE! Do not hold mutual funds outside of a tax advantaged account The internal long-term capital gains and short-term capital gains are passed onto you at the end of the year I've been hit with $9,000 of taxable "income" from a mutual fund When you reinvest those gains in the fund, the value of the funds stays exactly the same The result is that you are taxed to hold the same value of the fund NEVER HOLD MUTUAL FUNDS outside of a tax advantaged account
Comment from : śï×ÕfŇîņē

8 return compounded is the real hokus pokusbrI like the idea of smaller lifestyle
Comment from : JAI HD

I really like your editing
Comment from : Tonny Tang

Great info 😃
Comment from : Peter L

mr kim, this formula works but to achieve it are you putting all the investments in a brokerage account? the math gets a little more confusing when a large portion of your assets are in retirement accounts meaning 401k & roth ira which have penalties for withdrawals before 595 i should reach the 4 withdrawal rate by this formula in 9 years(i will be 51) but about half of all my assets are in retirement accounts that have these penalties im still contributing predominantly to the retirement accounts but anything extra is going in brokerage and towards another rental home to give me a bridge to 595 Is there a reason this is not discussed on most of these videos?
Comment from : Brent Talbert