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Unpacking William Bengen’s 4% Rule or His Safe Withdrawal Rate Research
By Investment Moats  •  July 30, 2023
William Bengen sparks off a body of work on retirement income planning when he tries to answer three challenging questions altogether: How much do I need to accumulate for my retirement? How much can I safely spend in retirement so that I do not run out of money? What would be the ideal asset allocation? All three questions are intertwined in that, you cannot answer one without addressing the others. Whether we like Bengen’s Safe Withdrawal Rate (SWR for short) or not, we got to know what it is about and what it is not. What I find very frustrating is people talking as if they know how it works but actually, they don’t really understand how it works: The 4% Rule does not adjust for inflation! The 4% Rule does not account for tough economic times! The 4% Rule spends 4% of the prevailing portfolio! What...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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