William Bengen Retirement Withdrawal Plan

[F-One]

Just came across this, haven't had time to read it, but another article cited him as the father of the "4% rule"

Comments?

http://www.fpanet.org/journal/articles/2006_Issues/jfp0806-art6.cfm

 

[walkinwood]

He is among the pioneers - I think a study called the Trinity Study was first, but he's done a whole series on the subject

These 4 articles by Bengen on fpanet.org are wonderful reading.

1. William P. Bengen, "Determining Withdrawal Rates Using Historical Data," (1994, Jan)
2. Asset Allocation for a Lifetime (1996, Aug)
3.Conserving Client Portfolios During Retirement, Part III (1997 Dec)
4. Conserving Client Portfolios During Retirement, Part IV (2001 May)

 

[RetireeRobert]

He is among the pioneers - I think a study called the Trinity Study was first, but he's done a whole series on the subject

These 4 articles by Bengen on fpanet.org are wonderful reading.

1. William P. Bengen, "Determining Withdrawal Rates Using Historical Data," (1994, Jan)
2. Asset Allocation for a Lifetime (1996, Aug)
3.Conserving Client Portfolios During Retirement, Part III (1997 Dec)
4. Conserving Client Portfolios During Retirement, Part IV (2001 May)

Thanks F-One and walkinwood for the references to Mr Bengen, and to his 1996 article "Asset Allocation for a Lifetime". I found it at fplanet.org and found it most instructive.

 

[Dennis]

FYI? All those "Safe WD % Guidelines" are Good, IF you have More than Enough $ to get you thru Retirement.and/or you have No Serious Financial problems that come up.... But , unfortunately, most Do Not and have some yrs they just have to take out More from their Savings due to UnExpected problems that arise.

It's good to use these kinds of Programs for a "Starting Point" or as a Max you Should take out, but It's Not going to Be the Final Word for most of us..

Exceptions are the One's who have Nice Pensions and/or + Getting Max SS and Don't Need Much , if any $ from their Additional Savings..

I found so many new Retiree's Went out and Spent Way too Much during their first 5 yrs ...
I found that just (a) Figure out How much you need to pay your Bills
(b) Add another 10% to that Net Figure
(c) Add what your Income taxes Are going to be for it
(d) and for the next 20 yr averaging planning? Add at least 5% APY to that Tot. Figure
(e) Invest per that Requirement basis
(f) Invest any extra $ you have during the First 10 yrs left over into your Portfolio
And if you don't Need the $ to pay for A NHome care or other Major Expenses that WILL come up?

You Will do OK..
And Don't go thinking your Going to Live another 30 Yrs! maybe +5 the Nat'l Average at Best, unless your Both parents have an you are in Top Shape.. Odds are, most are lucky to hit early 80's.... And Look Into "Live in Companion" people..much better than having to be in a NH...if can do it..

And with all the " Minorities" comming into our country that Need help, just like we Irish/Italians/Germans Did comming over on 'The Boat', Helping them and you will be helped as well.. Their are many that are decent and trustworthy....

 

[harley]

So what's different about your little list vs. a SWR plan? Looks like basically the same thing to me, except you don't supply any details. So where did you find all the new retirees who "Went out and Spent Way too Much during their first 5 yrs"? And I don't get your point at all about life expectancy, except I doubt you have any idea how long most will live. I personally have high hopes for another 30+ years. Which will put me at 83. Are you assuming Early Retirees are all in their late 60s?

And just out of curiosity, why do you keep finding all these old dead threads and posting completely unrelated comments on them?

 

[Maurice]

He is among the pioneers - I think a study called the Trinity Study was first, but he's done a whole series on the subject

These 4 articles by Bengen on fpanet.org are wonderful reading.

1. William P. Bengen, "Determining Withdrawal Rates Using Historical Data," (1994, Jan)
2. Asset Allocation for a Lifetime (1996, Aug)
3.Conserving Client Portfolios During Retirement, Part III (1997 Dec)
4. Conserving Client Portfolios During Retirement, Part IV (2001 May)

Are these accessible without a login? I can't seem to get to them.

 

[Meadbh]

FPA made their archives subscriber only last year, unfortunately.

 

[walkinwood]

Try your local library. They may have access to the FPA archives.

 

[travelover]

.....................And just out of curiosity, why do you keep finding all these old dead threads and posting completely unrelated comments on them?

And how do You decide which Words will be Capitalized?

 

[Achiever51]

And how do You decide which Words will be Capitalized?

THis maDe ME laugH Out LOUd!!! thanks!