Morningstar's 3.9% Rule, Estate Planning Conversations & Federal Reserve Drama

The headlines around Morningstar's updated safe withdrawal rate study sent many retirees into a panic. The so-called "4% rule" just became the "3.9% rule," which sounds like a rounding error worth ignoring. But Adam breaks down why the assumptions behind that number matter much more than the headline itself.

The conversation moves to estate planning and an interesting Wall Street Journal piece about a billionaire who holds quarterly family meetings to review finances and estate plans. That level of transparency might not work for everyone, but the principle applies across wealth levels: communication prevents chaos. Nobody wants their family scrambling to piece together accounts and passwords after a loss.

The discussion wraps with the Federal Reserve drama that dominated headlines over the weekend. While the DOJ investigation into Jerome Powell grabbed attention, markets barely flinched. Sometimes the most dramatic headlines deliver the least market impact.

We cover:
Why Morningstar's 3.9% withdrawal rate assumes things most retirees don't actually do
The hidden assumptions: 30-50% equity allocation and linear spending for 30 years
How spending flexibility could push safe withdrawal rates closer to 5.5-6%
Why quarterly family money meetings (billionaire style) might be overkill, but annual estate plan reviews aren't
The minimum conversation every couple needs to have about where things are
Federal Reserve independence, DOJ investigations, and why markets yawned
Andy’s basement renovation indicator as a bear market predictor

⏱️ Timestamps:
(01:06) Kindergarten milestones and birthday party economics
(02:36) Safe retirement withdrawal rates: Unpacking Morningstar's study
(12:33) Estate planning lessons: The billionaire's quarterly family money meeting
(20:24) Federal Reserve drama: DOJ, Jerome Powell, and Fed independence
(29:21) Podcast disclosures

Resources:

Follow Burney Wealth Management on LinkedIn | www.linkedin.com/company/burneywealthmanagement

Follow Adam Newman on Linkedin | www.linkedin.com/in/adam-newman-cfa-cfp%C2%AE-mst-ricp%C2%AE-cepa-48853916/

Follow Andy Pratt on LinkedIn | www.linkedin.com/in/andyjpratt/

Morningstar: The State of Retirement Income for 2026 | https://www.morningstar.com/business/...

Wall Street Journal Article: Why This Billionaire Holds a Family Meeting About Money Once a Quarter? | https://www.wsj.com/business/flexjet-...

#retirementplanning #estateplanning #federalreserve #wealthmanagement

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