Today I’m tackling a popular and contentious principle in the FIRE community: the 4% rule. I’ve written about a major flaw of the “rule” before, namely that it relies on a false myth of level spending year over year in retirement, but today I’m taking on whether we can actually expect the 4% rule to give us enough of a margin of safety in the future.
You might be surprised to know when I truly felt financially independent, and it had nothing to do with leaving behind my career or being able to sleep until noon every day if I feel like it. (Though those are pretty great, too.) Instead, it was when I knew that Mark and I would both be okay financially whether we stay together or not.
Maybe it’s because I was confined to the couch all last week with a migraine, and maybe it was because there was recently a fresh wave of “Early retirement will kill you!” headlines, but I decided to really dig into this question of whether early retirement could actually be bad for us. Here’s what I found.
We love that more and more people are talking about prenups these days (more financial transparency between partners is great!), but for those of us considering early retirement, we think a pre-FIRE agreement is even more important. After all, early retirement comes with its own set of major risks, some of which we’re insulated from to some extent as a couple, but others which become bigger risks for those who are married. Here’s how we’re navigating this.