2 ms·
> The 4% rule may not be entirely reliable. See: Ben Felix’s YouTube video on the topic. Felix (and Cameron) recently interviewed Bengen (who came up with the
by throw0101a 5y ago
> The 4% rule may not be entirely reliable. See: Ben Felix’s YouTube video on the topic.
Felix (and Cameron) recently interviewed Bengen (who came up with the rule) on their Rational Reminder podcast, and it may actually be 4.5% now:
* https://rationalreminder.ca/podcast/135 https://rationalreminder.ca/podcast/135
* https://www.youtube.com/watch?v=_nYTrCxluaY https://www.youtube.com/watch?v=_nYTrCxluaY
In 2006 he had it at 4.5% and in October 2020 at 5%:
* https://www.fa-mag.com/news/choosing-the-highest-safe-withdrawal-rate-at-retirement-58132.html?issue=334 https://www.fa-mag.com/news/choosing-the-highest-safe-withdr...
The reason being is inflation.
The really high inflation of the 1970s (and 1980s) chewed up savings for retirees and brought down SAFEMAX down, but in the 1950s and '60s it was actually 5% per Bengen.