The 2% (!?) Rule for Retirement Spending (EP.229)

This episode centers on the challenges young people face regarding retirement and financial well-being. It questions the traditional 4% safe withdrawal rate, suggesting a more conservative 2.26% may be more realistic given factors like increased life expectancy and lower expected market returns. The discussion highlights the exceptional performance of the U.S. stock market historically, attributing it partly to luck and a falling equity risk premium. The co-hosts suggest that young adults need to save more, work longer, and improve their financial literacy to overcome these challenges. They also touch on behavioral biases in decision-making, emphasizing the impact of choice architecture and environment on financial choices.