#28 - Rules of Thumb: Which to Trust and Which to Ignore

We test the most common money rules of thumb and show how to adapt them to real life. From saving rates to Social Security timing, we map the assumptions under each rule and explain when to trust them and when to change course.

• saving 15 to 20 percent as a flexible target
• emergency fund size by income stability and risk
• stock and bond mix guided by time horizon and inflation
• retirement spending built from actual expenses, not income
• the 4 percent rule as a floor with dynamic adjustments
• total-return withdrawals vs living only on income
• renting vs owning trade-offs across time horizons
• marginal tax brackets and why “next bracket” fears mislead
• Social Security timing across health, cash flow, and spouses