The 4% Rule Might Not Work… Here’s What to Do Instead

In this episode of the AskTMFG Podcast, Financial Advisors Carlo Cansino and John Iaconetti revisit one of the most widely used rules in retirement planning: Why the 4% rule may not be as reliable as it once seemed. While it’s often used as a simple way to estimate retirement income, the reality is that it relies on assumptions that don’t always hold, like stable markets, consistent inflation, and fixed spending. The conversation highlights that the shift from 4% to a slightly lower number isn’t the real issue. Instead, it reveals a bigger challenge: retirement isn’t fixed, and a rigid withdrawal strategy may not adapt to real-life conditions. They explore how market volatility, changing expenses, and sequence of returns can impact a portfolio, and why flexibility plays a key role in long-term sustainability. Ultimately, the episode emphasizes that retirement success isn’t about choosing the “right” percentage, but building a strategy that can adjust over time. 👉 Watch the full video episode: https://www.youtube.com/watch?v=F56uKiu9178  Question for our listeners: Do you rely on a fixed withdrawal rule, or does your plan adjust as conditions change? 👉 If you’d like help reviewing your retirement strategy, we’re offering a complimentary portfolio analysis: https://tmfg.ca/portfolio-analysis/ Follow us on our social channels: LinkedIn: The McClelland Financial Group Facebook: https://www.facebook.com/tmfg.ca Instagram: https://www.instagram.com/themcclellandfinancialgroup_/