Bill Bengen-4% Rule Creator on Reddit

[Elbata]

Fascinating thread on Reddit with the creator of the 4% rule.

https://www.reddit.com/r/financiali..._bill_bengen_and_i_first_proposed_the_4_safe/

There's so much that I loved about this Reddit. First, before this information was common knowledge, how did financial planners prepare the retiree for the future? Also, how Mr Bengen's research, along with the development of the internet/forums, allowed his ideas to blossom that never would have been possible before.

One other point Mr Bengen makes, and this is from his own research, is that "96% of retirees after 30 years have a portfolio still worth at least as much as they started with, in nominal terms".

Highly recommend taking a look at the link. I also enjoyed the other links provided.

Most of all, a huge thank you to Mr Bengen for his research and giving millions comfort in knowing their retirement is secure.

 

[audreyh1]

Nominal over 30 years: cumulative inflation over the past 30 years has been 115%, so in real terms, the portfolio value has shrunk over 50%. Much less time remaining, so that's generally OK, but a retiree will be drawing much more from it to maintain their standard of living.

 

[DrRoy]

Nominal over 30 years: cumulative inflation over the past 30 years has been 115%, so in real terms, the portfolio value has shrunk over 50%. Much less time remaining, so that's generally OK, but a retiree will be drawing much more from it to maintain their standard of living.

+1. You have to consider purchasing power of the $.

 

[kcowan]

Also the 30-year timeline does not apply to early retirees. Reddit looks like a great resource.