The 4% Rule May Be Too Conservative
William Bengen, who established the 4% safe withdrawal rate more than 30 years ago, has concluded that 4% is likely much too low based on subsequent research.
12Investing Insights
The Father of the 4% Rule Says Retirees Can Take Out Much More
William Bengen explains why the traditional 4% safe withdrawal rate may be too conservative for modern retirees.
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The Father of the 4% Rule Says Retirees Can Take Out Much More
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New Research Details
Bengen's updated findings are explained in his book 'A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More.'
3Key Factors Affecting Withdrawal Rates
The discussion covers how factors such as market valuation and inflation affect the safe withdrawal rate for retirees.
3Stock Allocation Strategies
Bengen discusses whether retirees should decrease or increase their allocation to stocks as they get older.
3Suggested Withdrawal Rate
The interview includes Bengen’s suggested withdrawal rate for current retirees.
3Ask GenPod next
Keep the question moving.
“How do market valuations specifically impact the safe withdrawal rate?”
“What is the suggested withdrawal rate for current retirees according to Bengen?”
“Should retirees increase or decrease stock allocation as they age?”
Background reading
The context behind the episode.
Questions
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Who is William Bengen?
William Bengen is the guest on this episode, known for establishing the 4% safe withdrawal rate.
14What is the main conclusion of Bengen's recent research?
Bengen has concluded that the 4% safe withdrawal rate is likely much too low for current retirees.
2What book explains this research?
The research is explained in his book 'A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More.'
3What factors affect the safe withdrawal rate?
Factors such as market valuation and inflation affect the safe withdrawal rate.
3Experts
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Sources and disclosure
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Ads are sponsored content for informational purposes only. TMF does not endorse or verify ad statements. TMF is not involved in the offer or sale of advertised securities and makes no representations regarding suitability or risks. Investors should conduct due diligence and consult advisors. TMF assumes no responsibility for losses. Opinions are their own.
- Publisher show notes
William Bengen established 4% as the safe withdrawal rate more than 30 years ago.
- Publisher show notes
But in subsequent research, he has concluded that 4% is likely much too low.
- Publisher show notes
That research is thoroughly explained in his latest book, “A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More.” In this re-airing of an interview from last August, Bengen joined Motley Fool retirement expert Robert Brokamp to discuss: - how factors such as market valuation and inflation affect the safe withdrawal rate - whether retirees should decrease or increase their allocation to stocks as they get older - Bengen’s suggested withdrawal rate for current retirees
- Publisher show notes
Host: Robert Brokamp, CFP®, EA Guest: William Bengen Engineers: Adam Landfair and Bart Shannon
- Publisher show notes
Disclosure: Advertisements are sponsored content and provided for informational purposes only.
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The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements.
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TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented.
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