How to Retire Early (The 4% Rule?)

Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
I filmed this video before the COVID crisis hit. I still wanted to share it with you since I think the content is useful. Hope you enjoy.
NYT Article: www.nytimes.com/2020/04/02/st...
Referenced in this video:
- How Much Can I Spend in Retirement?: A Guide to Investment-Based Retirement Income Strategies: amzn.to/2LicSQ7
- Determining Withdrawal Rates Using Historical Data: www.onefpa.org/journal/Docume...
- Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable: www.aaii.com/files/pdf/6794_r...
- Equity Risk Premiums (ERP): Determinants, Estimation and Implications:papers.ssrn.com/sol3/papers.c...
- The 4% Rule-At What Price?: web.stanford.edu/~wfsharpe/re...
- A rule for all seasons: Vanguard’s dynamic approach to retirement spending: www.vanguardcanada.ca/documen...
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[@mikeg9b]

I saved like crazy when I was working so I could retire early, which I did in late 2016 when I was 47. So far, I haven't made any withdrawals from my savings, which is 100% in stock index mutual funds. I've been able to live (frugally) off of my military retirement pay. I don't mind if I die with a large savings. I'll give it to my town school district or local community college. I don't want high consumption in my retirement. I want low stress. I can get that without spending much money.

[@seanfrank4158]

Nice Michael. Sounds like you really got the message. I'm 47 myself but still have many years of work ahead unfortunately.

[@adeb1989]

Michael Gainey Congratulations on early retirements. I am curious have you noticed any dramatic change on your quality of life post early retirement? I for one am scared of getting bored out of death. If this quarantine has teached me anything early retirement is not for me lol. May be I should start spending money more instead of worrying much on retirement.

[@johnyjsl9219]

I think we shouldn’t get hung up on the word retirement. I prefer financial independence. So if you are FI, you decide to work at something or not. If you like the work you do now, stay, but know you have the freedom to walk away. You will have more confidence at work to speak your mind and kiss up less. You can also find some meaningful part time work. I don’t think this corona period is a good comparison to being retired.

[@KudaFamily]

Michael Gainey, veteran, retired early and now taking care of your father, you sir have my respect and I hope you enjoy your retirement and the time you have with your father.

[@christophdenner8878]

Great attitude, congratulations!

[@tvelis513]

This analysis is clearly flawed as it neglects to account for a relevant number of BINGO winnings.

[@rafaelsantos1497]

Add the wins to the fact that a lot of bingo places sell meals and drinks super cheap, and finger food for free, and you're golden.

[@kyrie4451]

This is truly a deficit in Ben's investment plan.

[@dlw3m]

Lol... and pull-tabs

[@caniggiaful]

I have laughed so much more than I should have because of this thread.

[@Hyperpandas]

Bingo cards are definitely a cornerstone of any retirement portfolio....

[@sethspringer5843]

I just want to reach out to you and thank you for all that you do. I have watched all of your videos, many of them multiple times. I have never been able to find anyone who cites their work like you do. It is incredible. Your channel has defined the way that I invest all of my money!

[@HC-cz7xl]

Congrats Ben! Really liked that intro, connects you to your audience - would like to see more of that style in the future

[@zacharyevans2239]

Congrats on your 4th child Ben! You are a legend in the FIRE movement all the way over here in Australia. Keep up the great work.

[@jbirdjbirdjbird666]

Congratulations on the new addition Ben and I appreciate that’s it’s challenging to produce content. Very beneficial. Thank you.

[@liamo1555]

Congratulations on the new addition to your family Ben!

[@aquanoodle]

Ben, Heartfelt congratulations with your new baby born. I wish you and your family all the best in health and happiness.

[@frisos3944]

Those are eyes that didn’t get much sleep Ben 😉. Congratulations!!

[@MoementumFinance]

😛🙂👍

[@JP-ee1wn]

First of all, congratulations to your newborn. Many thanks for your Videos Ben. They are just awesome. Keep going!

[@jxieproductions415]

Congratulations on the child Ben! Love your content and keep up the good work. Your videos have helped me understand the markets a lot more and have made me passionate about investing. Thanks!

[@animal828]

Always love your videos. Aand congrats on the 4th baby. Hope the newborn and your family are healthy and safe

[@panagiotisveranoudis3025]

Congratulations on your new family member. Best of luck to you, your wife and kids Ben. Thanks for the content.

[@akhalek278]

Congratulations on the new baby. I rarely, if ever, comment on KZbin videos, but I wanted to thank you for your very informative channel. I follow many financial blogs written by respected professionals but I find your videos the most instructive and educational.

[@BenFelixCSI]

Thank you!

[@MoementumFinance]

Ben, your videos are so well-redearch and you are so on top of your game. So pleased to see a fellow Canadian so knowledgable and well-spoken. P.S. Also love your podcasts. P.S.2. Congrats on your new baby. 🙂

[@NathanYoungman]

Congrats Ben! 👶🏼 Your content is relevant! I’m in the early stages of figuring out retirement and FI. Vanguard’s dynamic approach is news to me. Thanks for mentioning it.

[@vlms5893]

Congratulations for the new baby! Love your channel.

[@vegasrichsave]

Congratulations to the family! Thank you kindly for the awesome video

[@dejioni2521]

Congrats Ben on the baby. Wishing safe health in this period.

[@Grognon]

I'm in my mid thirties and considering an "early" (as in 50-55 year old) retirement. I've read a lot on the FIRE movement but am always left with a "sounds too simple to be true" taste in my mouth. The principle is simple, but thanks for finally putting into a video/words why it's not "THAT" simple either. Super helpful, as always .

[@dg29661]

Thanks Ben. God bless you and your growing family. Your work has really helped me and my family. We appreciate you.

[@tomaszurbas326]

Congrats on the baby Ben! Take your time and come back when you are ready. Your content is the best one in YT on investment topic with it's quality and great delivery - i feel lucky to find your channel, the best subscription so far for me. Srsly recently it is the only reason why I am opening YT is to check if there is smth new from you.

[@ericmcalley6097]

Excellent as always Ben. Thank you. Straight forward, practical approaches backed by research and data.... 👍

[@hvee2309]

Congratulations on the baby! Enjoy the time home, look forward to more vids.

[@terryadams1830]

Congratulations on your fourth!!! Loving your channel!

[@dewallsworld]

Congrats on the new baby!!! Thanks for the always amazing content.

[@sirsa000]

The most clear and complete video I've seen on the topic. Thanks very much for the great work!

[@peterhuang123]

Congratulations on your new baby! Looking forward to more content when you are ready.

[@JP-om3ou]

4th!? Wow, congrats boss. Thanks for releasing, I love these videos. Keep it up!

[@MyFinancialFamily]

Hi Ben! This is my first time to your channel. Thank you for posting this video. It is definitely relevant. My friend and I were just having a discussion about the 4% rule and your video really helped break things down. Thoroughly enjoyed this!

[@drrakeshmadhyastha]

Fantastic video and congrats to you . Thank you for this video, I have shared this with my friends who are basing retirement on 4% rule

[@Lucas-bk5ip]

Congratulations from Spain Ben, thank you for your content.

[@millennialfire8596]

This is hands down one of the most in-depth videos that I've ever seen on this topic. My wife and I have started a channel documenting and teaching on how we plan to reach retirement by 40. There are many considerations in this video that we will definitely be taking into account. We invest in real estate as well which could mitigate some of the mentioned risks. Regardless, I truly believe that this 14mins has vastly increased our chances of success on our journey. Thank you! btw, you just gained another sub :)

[@michaelau180]

Congrats Ben. Thanks very much for the content. You're putting money into our pockets!

[@acshreds7126]

Finally, a straightforward video on the topic of retiring early backed up by numbers. I appreciate that you make clear exactly what the risks are for believing in a dated formula. I'll stick to my personal "3%" rule, but who knows, that could change as well. Earned a sub.

[@nmorrill]

Congrats on the new baby (and on the continuous stream of good videos)!

[@ctsirkass]

I discovered your channel today. It's informative, scientifically based, and most importantly does not sell you anything. I love it. Keep them videos coming!

[@Mosesusorer]

@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

[@majmunOR]

That's very good research, I'm glad you've published it!

[@311ashoke]

Congratulations on your baby Ben! Wish your family all the best.

[@mod7371]

You are quite the role model for me. Congratulations on your family and your other success. Greetings from Germany.

[@caleb4870]

I really appreciated this video! You lay out really helpful ways to think about what's important to different types of people. For myself, I am a young worker who doesn't even know exactly what I want from "retirement" but I do think that financial independence a healthy way to be stable.

[@tysak4]

Congrats on the baby Ben! A question for some possible content: How do government bailouts and other similar government actions affect markets?

[@rkf053fitz]

I can't really comment on market affects, but Stress Test by Tim Geithner was a really interesting read on the philosophy and impacts of bailouts and government actions during and after the 2008 crisis. It was a great and informative read, even for a non-American (fun fact: the government actually made money on their bailouts).

[@BenFelixCSI]

I am working on content related to this.

[@adeb1989]

Riley F well of course Tim Geithner would say that. He was one of the architects of the whole wall st bailout along with bernanke

[@iainp84]

Ben Felix I look forward to watching it!

[@Sandertie1]

Great question! Looking forward to a video of Ben about this.

[@EstherCole]

Congratulations on your new baby! xxx great reason for taking a breather...

[@b.ambrozio]

Hey! Congrats for the baby! :) And thanks for the videos

[@bogonet]

Congratulations on the new addition to your family!

[@adeb1989]

Great video as usual Ben! Love the material where you need out on different papers discussing their conclusions. One quick suggestion if some of these papers are publicly accessible if you could put them in the description that would be great. I would love to read some of these papers but afraid I will quickly realize I am way over my head.

[@philippemartin7706]

Congrats on the new baby! Great content. I really appreciate this channel and the podcast. Keep up the good work!

[@philippemartin7706]

@Ben Felix Your account got hacked I think.

[@nosir602]

Love the videos. Congratulations on the baby!

[@nickb8002]

Very good and well balanced video. I stepped away from the corporate world at age 38 because of the 4% rule. My approach has always been to adjust my spending based on returns. A trade off I'm willing to make. Also, since "retiring' from the corporate world, i have used some of the portfolio to buy land and i do work on some projects that interest me. Thanks for the video

[@MotoMatsalleh]

Just realized that my favorite KZbinrs are Canadian....

[@matiasiozzia9547]

Richard & Ben what a duet.

[@TheFourthWinchester]

Probably cuz they are less slimy than americans.

[@MattPukas]

Congrats on the new baby Ben! This was very eye-opening and made me happier to have a 100% stock portfolio for the next few decades. Very much agree with the fact that retiring early and not doing anything will not bring satisfaction as most people will get bored and in turn probably become unhappy. Finding something you love to do and earn some sort of income will always be crucial.

[@OrganicFreedom]

Wow! Great analysis with depth! Thank you for sharing this! ❣️Soooo true that anything can happen in the future! As free-spirited early retiree, my life will be full of surprises and adventure 🙌

[@retireonrentals5761]

Thank you for sharing. Good to see your take on things

[@Plutoguru]

Congrats on your 4th kid! What a blessing!

[@bigtimbers9025]

I really appreciate this more balanced look at the 4% rule. I feel like you could easily make a video that spanned several hours on the topic.

[@michaeldeangelo5599]

Congrats Ben. Excellent content, as usual!

[@jiyamabo]

Thanks for this great post. It sheds so much light on the 4% Rule.

[@Coda1850]

Congrats on the new baby. Excellent vid btw 👍.

[@afnankhokhar5578]

Super super helpful analysis. Thank you!

[@timarivobatis1182]

Congratulations and thank you for your fantastic content!

[@seanhutcheson7638]

Love this Ben! Nice to see more of a personal side 👍

[@easytorememberuser]

Brilliant. Thank you for this clarity.

[@Xillio123]

I had to switch accounts so I could like twice. As always great content. Congrats on the baby Ben.

[@plannindorf]

Congrats on the new wee one! Thanks for continuing to post videos that are the perfect balance of data and explanation. Your videos gave me the confidence to start investing and helped get my retirement on track (hopefully :P )

[@JeffSayYes]

Congrats Ben. Great content then and now.

[@JJV7243]

Love your videos! Very well explained and detailed

[@fififinance7469]

Congrats on the new arrival - hope the family is doing well during lockdown. Agree with you re 4% rule and you have articulated the risks really well. I don't think retirement should be strictly retirement but instead provide freedom and to work on projects and areas that provide more than just money.

[@anthonyperry3699]

Really appreciate your content Ben!

[@roberts.9299]

I'VE BEEN WAITING FOR THIS VIDEO FOR SO LONG. 😭

[@eca3101]

Congratulations on the baby!!

[@dmitryd5452]

Thank you for such informed and balanced presentation.

[@osphere]

Congrats on the baby! I hope its first words are: well diversified index portfolio. Just a few days earlier I remember thinking about all those FIRE cases that news outlets reported on when the market was at a high, how hard it must be for them to account for such an event like COVID.

[@matiasiozzia9547]

Solid content Ben, thank you!

[@SteveAgbaneje]

Congrats on your baby..... and Bless you for this knowledge...

[@WorldWideRide2012]

4th!!! Congrats to you and your wife. We use a variation of the floor and ceiling idealogy proposed by Guyton and Klinger. They called it "guardrails" and it works excellent. It's very important for folks to get away from the theoretical idea of a "fixed" spending plan. A very long retirement requires either a very large buffer or the ability to dramatically reduce spending. The later I suggest very few people can do in reality. Keep the great videos coming!

[@NicksTaxes]

Awesome content and congratulations on the new baby

[@VideoAssociates]

Great Video, balanced, thorough, and covering all bases

[@astralnut6313]

I retired at 60. Paid off the house and all the cars. I live modestly and my costs are about 1500 a month. My portfolio can earn over 2000 a month. I have a pension also at 65. Too many people want too much too fast. Too many people "put on airs" faking the image of being rich by charging everything.

[@jp89il]

you also will get social security in which by the sounds of it you dont need. you are a prime example of why social security should be an option and not forced.

[@NimrodicusRex]

Congratulations! Thanks again for your videos

[@astonchui808]

This is gold, thank you very much

[@kajtek141022]

Would love to hear more about those "mathematicaly dense solutions"

[@RamseyKilani]

From what I've seen these just involve moving to bonds as you retire, and then back to stocks as you get older.

[@mangoh69]

Google “bond tent” and “sequence of returns risk”. Kitces has a great write up on it.

[@BenFelixCSI]

Please do not hold me liable if you injure yourself reading this material :) web.stanford.edu/~wfsharpe/RISMAT/

[@kajtek141022]

@@BenFelixCSI i wont 😂 thanks. Keep up the great work

[@Dan-bd7lj]

@@BenFelixCSI On page 2 of section 7 ("market portfolio"), he literally dismisses the idea of factors and factor tilted portfolios, and says that they will be arbitraged away. Thoughts?

[@the13thgrade15]

Great video! This is very informative and puts a lot of things into perspective.

[@shonabertrand8642]

Congrats on the new addition!!!

[@domusbird]

Congratulations for the baby!

[@woodydellcreations1742]

Always great videos... congrats on #4! wow!

[@syncmeandroid]

Cool for my little girl I have the same coloured soft foam tiles you have. Congratulations for your wonderful newborn. ;)

[@Stefbb]

Holy, this video came unexpected. Just saved my day :D

[@jonathanking4861]

Excellent info as always. Many thanks

[@marifuganti]

I'm work like financial advisor in Brazil and I know that it's impossible compare these stocks and bond's informations with here, but i'd like to say that this video is so necessary for everyone to understand that nothing is free or easy. Thank you for that, Ben

[@oakintola8714]

Congrats on the new baby. Hope baby is doing great.

[@danf4447]

congrats on your BABY!!! keep the good ideas coming :)

[@user-dm84]

Congratulations on the baby! I like others also really enjoyed the introduction, it was a nice change to the format. Thanks for the well researched and informative videos.

[@NHroxNH]

Great content Ben. Thank you.

[@evancampbell7138]

Congratulations to you and your wife, Ben!

[@alexperoff-investingessent8367]

Congratulations on the new baby!

[@nvda2damoon]

this may be the best financial channel on youtube.

[@robinimpey101]

Congratulations!!! You can now add several more years of work before you can retire. 😉 Love the intro to this video!

[@dannymortimer2483]

Great channel I've just stumbled on. Please keep the videos coming 😃

[@tassovarvarikos384]

Great advice and excellent explanations!

[@LeandroResendeMundim]

Congratulations on the baby Ben. It's the best feeling in the world. :D