6♠ – Don’t Blindly Use the 4% Rule
Don't blindly use the 4% rule - because times have changed and it won't work any more.
by Mike Rawson · Published · Updated
Don't blindly use the 4% rule - because times have changed and it won't work any more.
Tags: What worksDrawdown
by Mike Rawson · Published August 15, 2016
by Mike Rawson · Published August 14, 2015 · Last modified August 19, 2015
by Mike Rawson · Published February 6, 2020 · Last modified February 12, 2026
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For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.
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Mike thanks for a great article.
What is also really helpful is if in retirement you still have some income from working part time and or a hobby that also generates income.
This takes a lot of pressure off the investment returns and going from 80% work to 20% work is not a bad idea, especially because we are all living longer and healthier into old age.
Hi Tim,
I appreciate the feedback – I’m a big fan of your own articles.
I agree about a side income. I’ve found I can’t really face working in an office any more, but if I can turn a hobby into an income stream, that would be great.
Even if you don’t make any real money, structure in retirement is important. Thirty years is a long time to sit on a sofa.