Talking Real Rules

Don and Tom put popular retirement rules of thumb under the microscope—testing everything from the 4% withdrawal rule to the idea of downsizing your home in retirement. With equal parts logic and skepticism, they explore whether these oft-repeated guidelines still hold up in today's financial landscape. Along the way, they touch on portfolio construction, social security timing (with Don’s real-life dilemma), and why rules are made to be... at least bent. Plus, a few listener questions round out the episode with practical portfolio advice and fund critiques.

• 0:04 Intro: Humans love rules—including rules of thumb

• 1:30 Should we ditch retirement rules altogether? Or are they helpful shortcuts?

• 3:23 Rule #1: The 4% withdrawal rule—what it gets right (and what it doesn’t)

• 5:08 Rule #2: The 80% income replacement rule—Tom hates it, and here’s why

• 7:49 Rule #3: Defer taxes with traditional IRAs—good idea or future tax trap?

• 10:02 Roth vs. traditional contributions—what young workers should do

• 10:39 Rule #4: The Rule of 110 for stock allocation—Don calls it dumb

• 12:32 Risk tolerance and personal flexibility matter more than age-based math

• 14:13 Rule #5: Wait till 70 for Social Security—Don admits he might not

• 16:38 Don's real-life dilemma: Take Social Security now or wait?

• 19:23 Rule #6: Downsizing your house in retirement—easier said than done

• 22:08 Final thoughts: Plans > rules of thumb, especially after age 50

• 23:07 Q&A: Why don’t you like Fidelity’s zero-fee funds? (Short answer: they’re not fully diversified)

• 26:50 Are they bad? No. Would we recommend them? Also no.

• 27:25 Q&A: Retirees with $4M+—how to rebalance IRAs, Roths, and taxable efficiently