The 5% Rule: Why Retirees Can Safely Spend More Than The 4% Rule Allows Marriage Kids And Money: Personal Finance For Families podcast

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The 5% Rule: Why Retirees Can Safely Spend More Than The 4% Rule Allows

2d ago 51:35

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Retirement planning just got a lot more flexible. In this episode, Andy Hill breaks down the new 5% rule, based on his interview with Bill Bengen, the creator of the original 4% rule. Learn how this updated strategy can help you withdraw more from your portfolio, reach Coast FIRE faster, and enjoy life while you are still healthy.

We also hear the inspiring net worth journey of John and David Auten-Schneider, hosts of the Queer Money Podcast, who grew their wealth from $51,000 of credit card debt to $1.6 million in their early 50s.

Finally, Andy and his son Calvin dive into “The Good Word,” where they celebrate positive financial news and explore how investing can grow wealth over time.

RESOURCES
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MKM RESOURCES

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RECOMMENDED RESOURCES (SPONSORS & AFFILIATES)

Monarch Money – Best budget app for families & couples.
Empower – Free portfolio tracker.
Crew – HYSA banking built for families (Get an extra 0.5% APY with my partner link).
Ethos – Affordable term life insurance.
Trust & Will – Convenient estate planning made easy.

Podcast Chapters
00:00 – Bill Bengen on enjoying life while spending safely
00:18 – Welcome and today’s 3 segments
01:00 – The 4% rule explained
02:20 – How Bill Bengen created the 4% rule
04:10 – Why diversification allows for a higher withdrawal rate
05:30 – Introducing the 5% rule
06:05 – Retirement math examples ($1M and $2M portfolios)
06:45 – FIRE and Coast FIRE implications (20x vs. 25x expenses)
07:50 – Conservative vs. aggressive expert takes (Orman, Ramsey, Vanguard)
09:00 – Why flexibility matters in retirement withdrawals
10:00 – Andy’s personal perspective on the 5% rule
10:15 – Net Worth Win: John and David Auten-Schneider (Queer Money Podcast)
13:00 – Their early struggles with $51,000 of credit card debt
15:30 – From debt payoff to Coast FIRE
18:00 – Breaking down their $1.6M net worth
21:00 – Navigating income dips and financial resilience
26:00 – Considering Roth conversions and tapping retirement accounts
32:00 – Future plans: Moving to Mexico and geo-liberation
37:30 – Their advice for others starting the wealth-building journey
39:00 – The power of house hacking and frugal car choices
40:20 – Where to find John and David online
40:23 – The Good Word with Calvin Hill
42:49 – Stock market hits all-time high and Calvin’s investing progress

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Opinions are the creators alone.
Information shared on this podcast is for entertainment purposes only and should not be considered as professional advice.
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CREDITS
Podcast Artwork: Liz Theresa
Editor: Johnny Sohl
Podcast Support: Andy Hill

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