I Stress-Tested a Real 25-Year Withdrawal Plan. Here's Where It Broke

Is a 7% withdrawal rate ever reasonable in retirement? Most of us have heard of the 4% rule, and 7% is a lot more than 4%. But I think it can work under the right set of circumstances, and this video is about what those circumstances are.

Resources mentioned in the video:

FICalc (the free calculator I use): https://ficalc.app/
VIIIX, Vanguard Institutional Index Fund: https://investor.vanguard.com/investment-products/mutual-funds/profile/viiix
VMCPX, Vanguard Mid-Cap Index Fund: https://investor.vanguard.com/investment-products/mutual-funds/profile/vmcpx
RNPGX, American Funds New Perspective Fund: https://www.capitalgroup.com/individual/investments/fund/RNPGX
BAGIX, Baird Aggregate Bond Fund: https://www.bairdassetmanagement.com/baird-funds/bond-funds/aggregate-bond-fund/
VSMGX, Vanguard LifeStrategy Moderate Growth: https://investor.vanguard.com/investment-products/mutual-funds/profile/vsmgx
I earn a commission if you sign up for Boldin or ProjectionLab:
Boldin (retirement planning software I mention): https://go.robberger.com/boldin/yt-7-percent-withdrawal
ProjectionLab (retirement planning software I mention): https://go.robberger.com/projectionlab/yt-7-percent-withdrawal

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0:00 Is a 7% withdrawal rate ever reasonable?
0:38 Allen's mom's plan, as he sent it
1:17 Two ways this differs from the 4% rule
2:46 The four funds, one by one
5:41 The bond fund and its duration
6:39 Why I'd rather see one fund than four
8:54 Inflation adjustments across all your income
11:31 Running the 7% through FICalc
13:04 The success rate it spits out
13:30 Which retirements failed, and why
16:20 Do lower fees change the answer?
16:52 So is 7% reasonable? My take

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. I've since sold my websites, bought them back, and started a new website and this YouTube channel.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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