Michael Kitces, blogger and head of planning strategy at Buckingham Wealth Strategies, recently interviewed Bill Bengen, the "father" of the 4% rule, the "safe" withdrawal rate for retirement savings.
In the discussion, the retired advisor said he actually used 4.5% instead for his clients. In fact, with inflation as low as it is today, he told Kitces the safe withdrawal rate may be closer to 5%.
In the podcast, Bengen stated that at the time of his research — the late 1990s — there were mainly two asset classes: large-cap stocks and intermediate government bonds. Today there are many more investment opportunities, he said.
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Ginger Szala
Ginger Szala is executive managing editor of Investment Advisor magazine. She covered the financial business and alternatives industry for 30 years while editor of Futures Magazine Group. MSJ Northwestern, BA University of Wisconsin-Madison. She is based in Chicago. Go Blackhawks!
