Podcast - Sage Wealth Strategy

At Sage Wealth Strategy, we make planning for your financial future simple, practical, and inspiring. On the Sage Wealth Podcast, we explore unconventional strategies, alternative solutions, and proven approaches to help you build lasting wealth that spans generations. Each episode brings you insights from years of hands-on experience, giving you the tools and mindset to create abundance and live a truly fulfilling life. Tune in, and start building your warehouse of wealth—one conversation at a time.

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The 4% Rule Is a Guess: Withdrawal Rates, the 401(k), and Becoming Your Own Fiduciary

Bill Bengen created the 4% rule. He recently revised it to 4.7%. Suze Orman argues for 3%. In this episode, Wade Borth explains why that disagreement matters more than either number: both are opinions built on historical market data, and neither guarantees you won't run out of money in retirement.

Wade traces the problem back to a scarcity mindset, the idea that a good retirement plan is just figuring out how little you can spend without running out. That mindset produces a cycle of sacrifice and fear instead of the retirement most people are actually working toward.

Wade Borth – Sage Wealth Strategy

Ready to take control of your financial future? Using properly structured whole life insurance, Wade Borth is dedicated to teaching how to establish the right strategy to create generational wealth. In this podcast, Wade shares the tools for understanding and the clarity of how to to do this for your family. This show is all about sharing that sage wisdom to help others build strong financial futures.

Executive Summary

An article pitting Bill Bengen’s revised 4.7% withdrawal rate against Suze Orman’s 3% rule sent Wade Borth down a different road this episode. Rather than picking a side, he asks why anyone would build a retirement plan on a rule that only claims a 90% chance of success. His answer starts with rejecting scarcity thinking and becoming your own fiduciary.

Key Takeaways

Bill Bengen’s updated 4.7% rule and Suze Orman’s 3% rule are both opinions, not guarantees, and neither promises a 100% positive outcome.
Withdrawal rate rules ask how little you can spend without running out of money. That’s a scarcity mindset, and it produces a cycle of sacrifice and fear.
Pension plans once gave retirees certainty. The 401(k) that replaced them shifted that risk from the employer to the employee.
Locking money away for 30 years is like freezing the best steak you own and never eating it.
Becoming your own fiduciary starts with financial education, not with outsourcing the decision to someone else’s opinion.

Links and Resources

http://sagewealthstrategy.com/

Keywords

4% rule, safe withdrawal rate, retirement withdrawal rate, 401(k) alternatives, pension plans, infinite banking concept, be your own banker, become your own fiduciary, guaranteed asset, whole life insurance, cash value, liquidity bucket, family banking, generational wealth, Bill Bengen, Suze Orman, retirement income planning, financial education, Sage Wealth Strategy, Wade Borth

Episode Highlights

[00:01:00 – 00:02:00] Wade explains why money should be treated as our second most valuable asset after time.
[00:02:00 – 00:03:00] Bill Bengen, creator of the 4% rule, now says retirees can safely pull 4.7%.
[00:03:00 – 00:04:00] Suze Orman counters with a 3% rule, and Wade explains his skepticism of financial entertainers.
[00:04:00 – 00:05:00] Wade argues both withdrawal rate camps set retirees up to either underspend or run out.
[00:05:00 – 00:06:00] The scarcity mindset behind every withdrawal rate rule, and why it produces sacrifice and fear.
[00:06:00 – 00:07:00] Pension plans once gave retirees guaranteed income. Most have disappeared.
[00:07:00 – 00:08:00] How the 401(k) quietly shifted investment risk from employers to employees.
[00:08:00 – 00:09:00] Why Wade treats every financial opinion, including his own, as an opinion and not a fact.
[00:09:00 – 00:10:00] The frozen steak analogy: why locking money away for 30 years doesn’t make sense.
[00:11:00 – 00:12:00] Wade closes on what it means to become your own fiduciary.