Hi Jan,
This week’s conversation was a special one. We had the chance to sit down with Bill Bengen (the original creator of the 4% rule) and explore how his work has evolved over the last three decades. That conversation inspired us to take a closer look at the deeper drivers behind safe withdrawal rates and what they mean for today’s retirees.
In this week’s article, we revisit the assumptions behind the 4% rule and highlight the eight core factors that shape what a “safe” withdrawal really looks like. Among them, inflation stands out as the most powerful and often the most underestimated.
We’re also sharing two companion pieces from the Retirement Researcher and McLean archives that build on this week’s theme.
If you’re thinking seriously about how to turn your savings into sustainable income, this is a great week to dig in.
| | | | The Factors That Shape Safe Withdrawal Rates – And Why Inflation Matters Most Retirement spending is one of the great financial puzzles. After years of saving, the question shifts from “How much can I put away?” to “How much can I spend without running out?” When it comes to taking money out of a retirement portfolio, there is no single “right” answer.
By Retirement Researcher | | | | Which Retirement Spending Strategy Is Right For You? Deciding on the right retirement spending strategy for your particular situation is both incredibly difficult, and incredibly important. There are huge numbers of reasonable options, but how do you know which is right for you? The answer depends on several factors.
By Wade Pfau, Ph.D., CFA, RICP®
| | | | Balancing Insurance and Investments in Retirement Planning Retirement income planning is one of the most important challenges in financial services today. People are living longer, traditional pensions are less common, and Social Security alone often does not provide enough to cover the lifestyle many retirees hope to maintain. The responsibility now falls on individuals to turn their accumulated savings into a reliable stream of income that can last for decades.
By McLean Asset Management
| | | | The 4% Rule and Beyond: Retirement Strategies with Bill Bengen
Wade and Alex are joined by Bill Bengen, the originator of the 4% rule, for a wide-ranging discussion on sustainable withdrawal rates, inflation’s surprising impact, and why today’s retirees may be able to spend more than they think. Bill shares key insights from his new book A Richer Retirement—and reflects on what decades of research (and his own retirement) have taught him about turning theory into practice.
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