No. of Recommendations: 1

Two points -

#1 The idea that you can withdraw 4.0% safely is at best an approximation. I dare say less than 2% of people know the criterion for the SWR in any study.

#2 You have impressed me as somebody who can read and understand. Spend the $65 for this book and read it.
I have been through this book in detail - found only one number that I could not calculate from data provided. Data appears correct.

While Bengen may not have been the creator or the 4% SWR concept, I was not able to find anybody who wrote about this earlier. Google will find a lot of his early work, but this book is the most complete.

Personally, after studying this book, I reached two conclusions. First stock returns for the next 10 years will be a bit less than the historic averages (bond will be worse). And 4% carried more risk that I was willing to accept - for me the magic value is 3.9% or less.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.