Over on the BOGLEHEADS bulletin boards they are talking about new research from Wm Bengen, one of the original "discoverers" of "the 4% rule". Bengen now says that 4% may be too stingy if market PEs are low at initial withdrawal (retirement). He is sticking by his original finding, however, that 4% is never too much, even when PEs are high. I don't have the link but apparently he was quoted about this in a Businessweek article.Full disclosure: To get good input from EVERYONE concerned about RETIRE EARLY issues, I am crossposting this on both CAMPFIRE and LIBERAL versions of RETIRE EARLY here. By the way, someone over there commented about Hocus always harping about valuations. This seems to actually prove Hocus wrong...that 4% is safe in the highest stock valuation period but even more than 4% is safe if stocks are at normal valuations or cheaper.
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