Most People Misunderstand the 4% Rule | Bill Bengen Sets the Record Straight

Check out Bill Bengen’s website: www.bengenfs.com

00:00 – Intro: Rethinking the 4% Rule
00:39 – Meet Bill Bengen: Creator of the 4% Rule
01:32 – Why He Wrote *A Richer Retirement*
02:43 – The 4% Rule: How It Started (and Why It Stuck)
04:09 – Misconceptions: “Only One Retiree Needed 4%”
05:15 – Updated Withdrawal Rates: 7% or More?
06:32 – Real-World Example: 2009 Retiree at 8%
07:12 – How Higher Withdrawal Rates Help Pre-Retirement Too
08:00 – Market Valuations & Future Return Expectations
09:14 – Inflation’s Role in Retirement Planning
10:16 – Adjusted Safe Withdrawal Rate in Today’s Market
11:06 – Dynamic vs Fixed Withdrawals (Guardrails, Smiles & More)
12:17 – How Long Should You Plan For?
13:02 – The Small Cost of Extending Retirement Horizons
13:41 – FIRE Planning: Why 4.1% May Still Be Safe
14:18 – Why Mainstream Advice Is Often Too Conservative
15:06 – RMDs and Withdrawal Strategy Integration
16:02 – Spending Patterns at Age 60 vs 80 or 90
16:46 – Gifting While Alive: Legacy in Real Time
17:54 – Could the 4.7% Rule Change Again?
18:48 – Market Timing vs Risk Management in Retirement
20:06 – Why Active Management Might Be Necessary in Retirement
21:20 – The Biggest Mistakes People Make With the 4% Rule
22:35 – Bill’s Definition of a Successful Retirement
23:20 – Book Info: *A Richer Retirement* & Website Details

In this exclusive interview, Erin Moriarity sits down with Bill Bengen, the creator of the 4% rule, to discuss how retirement planning has evolved—and why the original rule may no longer apply. Bengen reveals that the 4% rule was based on a worst-case scenario and explains how many retirees can safely withdraw 5% or more. They explore dynamic withdrawal strategies, the impact of inflation, and how to build a flexible plan for today’s markets. Plus, Bill shares insights from his new book, A Richer Retirement, and what most people misunderstand about retirement spending.

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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

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