THE DIVIDEND PROJECT – EPISODE #40: Welcome, Dividend Dictators! Today, I’m going over the “Rule of 25.” The “Rule of 25” is the financial cousin of “The …

38 replies

    Uhhh! Like this Rule of 25. I read it previously under an article based on the Trinity Study. Which states we can safely withdraw 4% of our investment w/o ever running out of money. This rule of 25 is much simpler to understand. Since it's simple math not using percentages which some people are bad with. HAHA. Thanks for posting your personal simple rule!

    Ohwait obviously I was typing while hearing you speak. HAHA.

    Yea. The 4% rule!

    Thanks still for making this 4% simpler for many of us out there!

  2. Investing With Chris
    Investing With Chris says:

    Rule of 25, 4% rule. I was confused at first and thought they were different and now I always wonder why both names are so commonly used. Also gotta remember you probably won’t have the mortgage payment in retirement 🔥

  3. Carlos Alfaro
    Carlos Alfaro says:

    Nice video. One note: I dont think the 4% rule is applicable for dividend investors. We never sell the nest egg, as we receive dividends. Rather, a future yield on cost is applicable in my opinion, which could be higher than 4%.

  4. The Basic Concept
    The Basic Concept says:

    Another way to look at it: 4% dividend is fairly easy to get, so once you are in retirement your money stays at the same value and you live off the dividends. My number was 600k however I have had to change it, since I’m already there, I multiplied my number by 4 mainly to ensure that my kids have a better future also. Great video as always!

  5. art of the budget
    art of the budget says:

    lol, i had a pup names maverick when i was growing up. this was a fun one for an investment beginner like me. my number is about a million, which works out for how long i have to build wealth before i'd like to be retired. thanks for this useful video.

  6. Hidden Freedom Investing
    Hidden Freedom Investing says:

    I was looking forward to the Bigfoot, I mean Goose sighing. lol. I think the 4% rule 25x was made popular in recent times by MMM. For me, I'm targeting 3.5% withdraw rate. I think it's safer for someone FIRE'ing in 30's to do 3%, 40's 3.5% and 50's plus 4%. But maybe I'm too conservative. This is assuming no pension. 🙂 Love your work Ricky.

  7. Dividends_with_Alisher
    Dividends_with_Alisher says:

    I never heard of the rule of 25 thank for this! I been budgeting a lot lately and trying to save every penny and invest it so I can become financially free, calculated the retirement fund I need and I am nowhere close, still, lot work needs to be done!

  8. FrugalOverFifty
    FrugalOverFifty says:

    Hiya Ricky and Happy New Year! I've been away for a while and I'm having a great day checking in with some of my fave YouTubers. Your content is sooooo helpful and specific and relatable. Thank you for these four steps. Now I'm off to watch your video on debit vs. credit cards – eeps!

  9. MoBang FoYoBucks
    MoBang FoYoBucks says:

    Never knew about rule of 25! But I already figured what my monthly expenses when I retired. So I build my best eggs to generate enough income to cover more than what I need just in case. Good video Ricky.👍 Learn something new everyday!😁

  10. Kenan Grace
    Kenan Grace says:

    Great video! I’m sure learning what that number is is really shocking to most people! Your content helps newer channels like mine!

    So full of easy to follow inform!


  11. Unlearn Money Project
    Unlearn Money Project says:

    Ahh yes, the rule of 25. Like you mentioned that and it's better known cousin the 4% are good solid indicators to go buy when accessing where you stand with your financial freedom goals. Also, gotta love Tyrone Biggums! Good video 👍


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