The 60/40 Portfolio & 4% Rule: Why They May No Longer Work

The 60/40 portfolio and the 4% rule have long been considered the standard formula for retirement planning. But do these strategies still work in today’s market environment? In this educational video, Elliot and Nathaniel explain how the traditional 60% stocks / 40% bonds portfolio structure became the industry standard and why the famous 4% withdrawal rule gained popularity after the Trinity Study and the research of William Bengen in the 1990s. We also break down the major risks retirees face today, including sequence of returns, bond yields, inflation, and longevity. Finally, Elliot introduces an alternative framework that organizes retirement investments based on time horizons instead of relying solely on a fixed 60/40 allocation. If you'd like a personalized retirement analysis, reach out to our team. Link to the OWLFI website with our contact info: https://www.owlfi.com/contact