153: Bill Bengen (The Inventor of the 4% Rule) Talks Retirement, Past Crashes, and How You Can Withdraw Even More!

He really is the man who needs no introduction (but here’s one anyways). Bill Bengen , the inventor of the 4% rule (and personal finance hero of Mindy & Scott) stops by the Money Podcast to talk about how he calculated his famed 4%, how he managed his client’s portfolios , and how the 4% has aged throughout the past three decades. In his Original Article from the Journal Of Financial Planning, October 1994 , Bengen outlined a groundbreaking calculation: a 4% withdrawal rate from your retirement accounts is all you need to comfortably retire (if enough is saved up). Bengen was hit with praise and criticism , but is still applauded to this day for having such a simple yet crucial metric for knowing how & when you can retire . Using over 200+ retirement account portfolios spanning decades of time as research, Bengen still says with confidence, the 4% rule is a winner! He has the proof and we couldn’t agree more. Whether you’re a few years or a few decades away from retirement, this episode features life-changing advice from one of the leaders in financial research. This is an episode you won’t want to miss! In This Episode We Cover What the 4% rule is How Bengen came up with the 4% rule and why it stands the test of time How inflation becomes the “ thief in the night ” for many investors The best (and worst) times to invest How to stay the course during financial downturn Which asset classes boost great returns and withdrawal rates Steering clear of “ 1 more year syndrome ” The importance of rebalancing your portfolio How to not accumulate too much wealth for retirement Why everyone needs to learn how to be a saver , so they can enjoy life! And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forum Learn more about your ad choices. Visit megaphone.fm/adchoices