1 rich Libsyn https://www.libsyn.com 90 600 I had the pleasure of speaking with Bill Bengen, creator of the &quot;4% Rule&quot; for retirement planning. Bill has been a reader of Financial Samurai for many years and has always been courteous in the comments section when I write about safe withdrawal rates. So, I figured it was time we had a chat to clear up some misconceptions. For those unfamiliar, the 4% Rule, developed by Bill in the 1990s, suggests that traditional retirees (around age 65) can safely withdraw 4% of their retirement portfolio in the first year—adjusted for inflation in subsequent years—without running out of money over a 30-year period. Misconceptions About The 4% Rule Cleared Up By Bill Bengen Here’s what I learned from Bill that helped clarify the 4% Rule: Not a Hard “Rule”: Bill considers the 4% Rule more of a guideline than a strict rule. He encourages flexibility with withdrawal rates, though it’s often treated as a rigid rule in the public eye. 4% Isn’t Actually Aggressive: Contrary to popular belief, Bill’s data shows that 4% is actually conservative. In his study of 400 retirees since 1926, only one retiree (who retired in 1968) had to stick to a 4% rate to avoid running out of money. The rest withdrew an average of 7% without depleting their portfolios. Adjusting for Inflation: The 4% Rule isn’t static; it adjusts with inflation. For instance, if you start with a $1 million portfolio and withdraw $40,000 one year, you would adjust that amount by inflation the next year to $44,000. This means your withdrawals fluctuate with your financial needs and economic conditions. You can e-mail bill at Bill@begenfs.com if you have any questions.&amp;nbsp; Posts mentioned: Misconceptions About The 4% Rule With Bill Bengen The Proper Safe Withdrawal Rate Finishing Rich In A Low Return Stock Market Environment If you enjoyed this episode please rate, share, and susbscribe. Every review means a lot as every episode takes hours to record, edit, and produce. Thank you! To expedite your journey to financial freedom, join over 60,000 others and subscribe to the&amp;nbsp;free Financial Samurai newsletter. Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. The Financial Samurai Podcast https://www.financialsamurai.com <iframe title="Libsyn Player" style="border: none" src="//html5-player.libsyn.com/embed/episode/id/33427862/height/90/theme/custom/thumbnail/yes/direction/forward/render-playlist/no/custom-color/88AA3C/" height="90" width="600" scrolling="no" allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen></iframe> https://assets.libsyn.com/secure/content/181123897