Catching Up to FI Mr 4% is now Mr 5% | Bill Bengen | 111
Dec 15, 2024
Bill Bengen, the mastermind behind the 4% rule, shares his insights on retirement planning and market strategies. He reflects on how his research has evolved over 30 years, tackling pressing questions about risk management versus market timing. Bengen offers a sneak peek into his upcoming book, encouraging retirees to be more flexible with their spending. He emphasizes the importance of adaptability in portfolio management and shares valuable advice for late financial starters, making retirement planning less daunting and more attainable.
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Career Shift
- Bill Bengen, trained at MIT, initially aimed for a career in planetary exploration.
- However, the limited opportunities after the moon landing led him to his family's soft drink business.
Finding Financial Answers
- When seeking financial advice, explore multiple sources, including textbooks and consultations.
- If existing resources lack answers, take the initiative to research and find solutions yourself.
4% Rule Origins
- The 4% rule emerged from research using a simplified two-asset portfolio.
- Unexpectedly, asset allocation between 40% and 70% stocks yielded the same withdrawal rate.
