Bill Bengen: The 4% Rule is OUT and the 5% Rule is IN

BiggerPockets MoneyJun 6, 202547m 7s34.7K viewsScore 85
Pricing & Profitability
advanced
withdrawal rate
retirement planning
portfolio allocation
FIRE movement
investment strategy
M

Summary

AI-generated

Learn how Bill Bengen updated his famous 4% rule to a 4.7% withdrawal rate by incorporating more diversified investments. Discover strategies for adjusting your retirement timeline and portfolio allocation based on market conditions and personal risk tolerance.

Key insights

  • Reducing fixed expenses, such as paying off a mortgage, can significantly decrease the required nest egg size and increase the sustainable withdrawal rate.

Mistakes to avoid

  • Relying solely on a buy-and-hold strategy during retirement can be risky, especially if retiring into unfavorable market conditions, potentially leading to significant portfolio declines.

Tools & resources

  • A Richer Retirementbook

    Bill Bengen's new book, 'A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More,' provides detailed research and strategies for retirement planning.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial