Is the 4% Rule Still Valid Today? [video #2]

We examine how William Bengen came up with the 4% Rule. This will help us determine whether the 4% Rule is still valid today. We will also look at whether the 4% Rule applies to early retirees and members of the FIRE movement.

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Timestamps:
0:00 Introduction
2:41 How the 4% Rule was created
6:22 Stocks, Bonds, Bills & Inflation
7:05 Stock Market Crashes
9:27 3% Initial Withdrawal Rate
10:39 4% Initial Withdrawal Rate
11:30 5% Initial Withdrawal Rate
12:03 Stock Market Crashes & the 4% Rule
16:00 Is the 4% Rule still valid today?
20:30 Does the 4% Rule apply to early retirees (FIRE)?

Resources mentioned in this video:

William Bengen's 1994 paper: https://www.retailinvestor.org/pdf/Bengen1.pdf

Michael Kitces' 2015 paper: https://www.kitces.com/blog/the-ratcheting-safe-withdrawal-rate-a-more-dominant-version-of-the-4-rule/

Stocks, Bonds, Bills & Inflation (Summary): https://www.cfainstitute.org/-/media/documents/book/rf-publication/2020/rf-sbbi-summary-edition.ashx

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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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