Been absent on MMM, chiming in - FI'd 3/2022 into the depths of SORR. I wish I read ERN deeply a year prior, but better late than never. ERN's "SORR content and glide-path suggestions" is super helpful. Anyone approaching FI in 3-5 years should read it. I experienced serious portfolio shock from having a tech heavy portfolio due to past stock awards. I've since rebalanced, but wish I had read/adopted ERNs glide path advice.
For several months, I've deployed ERN's Options Income strategy (1DTE) as an overlay on my portfolio (half index, half blue chips), and that's now supplementing income for my expenses (often covering more than my expenses), like ERN. He has all his backtesting and returns published -- better him to explain the details. My adjustments: I reduce my downside risk (and return) by using $5000 wide spreads, instead of naked puts. I may also close positions early for small amount to avoid extreme tail risks in this environment.
To be fair, I have a few years of options experience and am an active investor. But ERN's strategy is fairly consistent and conservative. It meets my needs for addressing SORR. ERN also has other suggestions to reducing SORR.
My situation is also different from most because I don't have a pure SP500 portfolio. I also have a small rental income, and recently bought 2 year CD ladders.
Like some have said, I think 4% Rule is great as a rule of thumb and for getting to the destination. But near/post FI, I found more helpful is ERN's thinking around SWR, SORR / creating a glide-path, and how he approaches spending as dynamic 40-60 (spending more) vs 70-90 (spending less).
I will also agree that MMM is living something quite different now. He's remodeling kitchens during a downturn. Same with 1500 Days, who's flipping houses. Plus their blog incomes. Great for both of them! That's not helpful for the cohorts facing needing to reduce SORR, the failure part of 4% rule.
Anyhow, ERN is a dense read, but well worth it! And if you can withdraw only 3.3-3.5%, you should be 99% good.
