I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in ...

After the first year, you "throw away" the 4.5% rule and just increase the dollar amount of your withdrawals each year by the prior year's inflation rate. Example: $100,000 in an IRA at …

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I'm Bill Bengen, And I First Proposed The 4% Safe Withdrawal Rate In ...

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After the first year, you "throw away" the 4.5% rule and just increase the dollar amount of your withdrawals each year by the prior year's inflation rate. Example: $100,000 in an IRA at …

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"I'm Bill Bengen, And I First Proposed The 4% Safe Withdrawal Rate …

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Jan 2, 2009 · But considering that, on average, a 7% withdrawal rate plus inflation would have worked, 4.5% is still fairly safe, though certainly not as safe as lower withdrawal rates. With no …

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The 4% Rule: Clearing Up Misconceptions With Bill Bengen

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2 days ago · My main message is that people can consider retiring earlier – in their mid-50s – because Bill Bengen has shared with us his work and clarified that 4% withdrawal rate is a …

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The 4% Rule For Retirement Spending Is Now The 4.7% Rule

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Oct 23, 2023 · 1. Start with the income you think you'll need, and back into the amount of money that can generate the income safely using the 4.7% rule. 2. Adjust both your required income …

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Bill Bengen Revisits The 4% Rule Using Shiller's CAPE Ratio, …

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Dec 17, 2020 · This chart plots the Shiller CAPE (the cyclically adjusted price-earnings ratio for the S&P 500) against the “safe” historical maximum withdrawal rate for the first day of every …

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20 Years Of Safe Withdrawal Rate Research : R ... - Reddit

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Sort by: Beeonas. • 5 yr. ago. This is my main take away from the article. "The original 4% safe withdrawal rate was based on a 30-year time horizon. Increase the safe withdrawal rate by 1% …

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What Almost Everyone Gets Wrong About The Retirement …

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Dec 6, 2021 · What the 4% Distribution Finding Really Teaches Us . Bengen’s research is still good research, and the 4% safe withdrawal rate literature is some of my favorite in all of …

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4% And Beyond! The Evolution Of Safe Withdrawal Strategies With …

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Summary. In this episode of the Humans vs Retirement podcast, I interview Bill Bengen, the pioneer of the 4% safe withdrawal strategy, who shares insights from his extensive research …

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Is It Time To Rethink The 4% Retirement Withdrawal Rule ... - NBC News

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May 14, 2024 · The first-year withdrawal of the annuity strategy — $52,667 versus $40,000 — is 32% higher and $1,056 more per month than just using the 4% rule. “Retirees never know how …

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Bill Bengen: How To Monitor And Adjust Withdrawal Plans

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Oct 9, 2023 · 3. Specify the type of withdrawal account. Bengen’s 4.7% is for a qualified plan, and the corresponding rate would be lower if assets were held in a taxable account. 4. Select the …

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4% And Beyond! The Evolution Of Safe Withdrawal Strategies With …

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Summary In this episode of the Humans vs Retirement podcast, I interview Bill Bengen, the pioneer of the 4% safe withdrawal strategy, who shares insights fro...

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How Inflation And Valuation Affect Safe Withdrawal Rates

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Dec 17, 2021 · And in the late '50s, a safe withdrawal rate was 6%, 6.5% because of the low inflation and the moderate valuation. So, yes, inflation early in retirement is particularly …

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Bill Bengen: Revisiting Safe Withdrawal Rates - Morningstar

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Dec 14, 2021 · The creator of the 4% guideline discusses the implications of higher inflation and elevated equity valuations for new retirees. Bill Bengen: Revisiting Safe Withdrawal Rates | …

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FAQs about I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in ... Coupon?

Who proposed the 4% safe withdrawal rate?

I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything! Thanks to ER10years_throwaway for this invite. I was a financial advisor for 25 years, now retired, but still expanding my research into safe withdrawals from retirement portfolios. I am eager to share my thoughts with you, so please bring on the questions. ...

How did Bengen increase the SAFEMAX initial withdrawal rate?

Bengen, in 1997, raised the SAFEMAX initial withdrawal rate to 4.3 percent by adding some more diversification with the inclusion of 30 percent small-caps in the stock portfolio (Bengen 1997). Bengen boosted the SAFEMAX initial withdrawal rate again, to 4.5 percent, in a 2006 book (Bengen 2006). ...

What is a good annual withdrawal rate?

For many investors, the go-to answer is 4%. Researcher Bill Bengen developed that rule of thumb back in 1994, meaning an annual withdrawal rate of 4% is the amount that will see investors through retirement in any economic scenario. (Check out our interview with Bengen to hear how he thinks that rule has held up in today’s market environment.) ...

Are 4% Withdrawals safe?

Financial planner William Bengen first identified the 4% rate as a sweet spot for safe withdrawals in 1994. Since then, the world — and retirement — has changed. Yet 61% of financial advisors are still using the 4% withdrawal rule, according to research from David Blanchett, managing director and head of retirement research at PGIM DC Solutions. ...

What is a safe withdrawal rate for a 60-year time horizon?

For a 60-year time horizon, the indicated safe withdrawal rate is reduced from 4.5% to 4.0%. Some people have simulated his methods for a perpetual withdrawal rate i.e. what withdrawal rate after 30 years leaves you with the same base you started with. Look into that. ...

Is 4% a good withdrawal rate?

Bengen did research in 1994 and found this was true in the past. Additionally, people started applying the 4% withdrawal rate to other portfolio mixes assuming they would also support 4% inflation-adjusted distributions for 30 years. But nothing about the research suggested that would be the case – it actually suggested otherwise. ...