Planning for Large Costs in Retirement | Beyond the 4% Rule

Listener Sherry asks a good question: How do large, one-off expenses (like a new roof, new car, etc.) fit in the 4% Rule? James explains the concept of the 4% Rule and its limitations while demonstrating how it can be an effective guideline in planning and forecasting retirement success. He addresses the importance of anticipating one-off expenses and, depending on your portfolio withdrawal rate, using sinking funds to get a reality check on where you stand.Questions answered:Are one-off expenses covered in the 4% Rule?Who should be concerned with creating sinking funds for one-off expenses?Timestamps:0:00 - Sherry’s question3:19 - Shortcomings of the 4% Rule5:30 - Look at income and outcome6:58 - Portfolio withdrawal rate10:51 - Example of no margin13:02 - Sinking funds16:57 - New reality check18:49 - Consider the duration of expenses20:17 - The wrap-upCreate Your Custom Strategy ⬇️ Get Started Here.