DiscoverBiggerPockets Money Podcast351: Does the 4% Rule Hold During 2022's Stock Market Crash?
351: Does the 4% Rule Hold During 2022's Stock Market Crash?

351: Does the 4% Rule Hold During 2022's Stock Market Crash?

Update: 2022-11-072


Stock market crashes aren't good news for anyone. For retirees though, this dip in prices can feel like a death wish, as active income is no longer an option. Have the hopes and dreams of financial flexibility gone out the window? Or is a market crash like we're experiencing today just a small blip on a retiree's radar? Pairing this with inflation, how will someone who has just retired make it?

We’ve got Michael Kitcesretirement planning expert and financial genius with enough acronyms coming after his name to spell out the alphabet, on the show to answer whether or not retirees are in trouble. Michael has advised his clients for decades on the right way to save and invest for retirement. He’s been a proponent of the 4% rule and was bold enough to hold his claim even during the flash crash of 2020. But, with such high inflation and stark drops in equity values, does he still agree with his past predictions?

Michael takes us on a trip down memory lane, visiting some of the worst financial crises in American history, showing how they compare to today. He also proposes that holding large amounts of cash, even during high inflationary times, isn’t the worst move to make, and whether or not he’s still investing as the market finds its bottom. If you’re worried about retiring during times like today, this is the man to listen to!

In This Episode We Cover

The 4% rule explained and whether this sage retirement advice still holds up

How past retirees fared during high inflationlow growth time periods

Which types of market crashes can be “dangerous” to retirees (and who should be worried)

Why some of the brightest minds in personal finance are clinging to cash 

Purchasing power and how withdrawal rates are affected by high inflation

The smartest move to make if you’re worried your retirement savings aren’t enough

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Mindy's Twitter

Scott's Instagram

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: SpotifyApple PodcastsBiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

Buckingham Wealth Partners

Bill Bengen (The Inventor of the 4% Rule) Talks Retirement, Past Crashes, and How You Can Withdraw Even More!

Original Article from the Journal Of Financial Planning, October 1994

Are FIRE Naysayers Bad at Math? Yes. with Michael Kitces

Click here to check the full show notes:

Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

See Privacy Policy at and California Privacy Notice at

In Channel
Download from Google Play
Download from App Store








Sleep Timer


End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

351: Does the 4% Rule Hold During 2022's Stock Market Crash?

351: Does the 4% Rule Hold During 2022's Stock Market Crash?