[40 Deluxe]

.004 is too loose, to me anyway. There are better ways to set clearance than Plasti-gage. You have to be quite careful not to get a false reading. Tapping on a rod cap to remove it will flatten the Plasti-gage some more and make you think you have .004 when it's really .007 or .008, for example. When checking mains, you need a jack to support the crankshaft so its weight doesn't flatten the Plasti-gage too much.
It's time consuming, but a good method is to remove one shim from each side of the cap, reinstall it, and turn the engine over. If it still turns freely, remove two more shims until it is very stiff to turn, then put back the thinnest, one at a time until the engine just turns over freely. Keep the shims even from side to side with no more than one shim difference.
You can search on here for more detailed instructions or different methods. Just don't keep running with loose bearing clearances. A little TLC goes a long ways with an A!