Episode

139: Have $1M-$30M? DON'T use the 4% rule

Podcast
Managing Tech Millions
Published
Dec 30, 2025
Duration seconds
875
Processing state
not_requested
Canonical source
http://www.managingtechmillions.com/
Audio
https://audio3.redcircle.com/episodes/2294d5a9-0a84-43f8-ae14-7508cce1d1e1/stream.mp3
JSON
/v1/public/podcasts/managing-tech-millions-6705312/episodes/139-have-1m-30m-don-t-use-the-4-rule
Markdown
/podcast/managing-tech-millions-6705312/139-have-1m-30m-don-t-use-the-4-rule.md

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Summary

Four years ago, one decision changed everything. Walking away from a tech executive career at 51 looked reckless from the outside—especially when the portfolio at the time was half the size of peers who were still working long hours. But there was one critical difference: while their wealth was just a number on a screen, this portfolio was already generating meaningful cash flow. Four years later, it has grown by more than $2M and now produces over $200K per year in income—without selling assets. This episode breaks down why the traditional 4% rule quietly fails high earners and why so many people with millions still feel trapped in demanding careers. The 4% rule was never designed for people managing seven- and eight-figure portfolios, and it ignores one of the biggest risks retirees face: sequence-of-returns risk. When markets drop early in retirement, forced asset sales can permanently derail a portfolio—and most advisors still build plans that rely entirely on hope and market timing. The conversation pulls back the curtain on a massive gap in wealth management. If you have under $1M, personal finance advice works. If you have over $100M, you can build a full Single Family Office. But between $1M and $30M, most investors are pushed into generic 60/40 portfolios that generate little to no income while charging substantial fees. This is what creates dependence on a paycheck long after wealth has been built. The alternative explored in this episode is how ultra-wealthy families actually structure portfolios: never selling assets to fund life. Instead, they build Evergreen Portfolios designed around three coordinated categories—growth, preservation, and income. Growth assets compound long-term value, preservation assets protect liquidity and downside risk, and income as…