What The ‘4% Rule’ Actually Means
We should unpack the “4% rule,” laid out by Bill Bengen, distributed in the Journal of Financial Planning in 1994. Bengen’s exploration found that with regards to history, one might have taken 4%, adapted to expand from a speculation arrangement of a 50/50 blend of huge cap U.S. stocks and government securities. You would, in any case, have an adequate number of assets in a 30-year retirement. Thus, for instance, suppose you began retirement with …