White Coat Investor Podcast

WCI #464: What the Creator of the 4% Rule Says Today

30 snips
Mar 26, 2026
Guest
Bill Bengen
Bill Bengen, retirement researcher and creator of the 4% rule, shares his continuing work on safe withdrawal rates and retirement income. He discusses his book A Richer Retirement and argues why a higher withdrawal rate may be feasible. Conversation covers portfolio construction, inflation risks, glide paths, small-cap tilts, and practical ways to manage spending and downside risk in retirement.
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INSIGHT

Inflation Is Retirement's Greatest Enemy

  • Inflation, especially prolonged high inflation, is the biggest threat to retirees, potentially worse than poor equity returns.
  • Bengen cites the 1970s stagflation as the worst sequence for withdrawal sustainability because inflation forces rising nominal withdrawals.
ANECDOTE

Bengen Ate His Own Cooking In Retirement

  • Bill Bengen says he followed his own research when he retired in 2013 by using a 4.5% withdrawal rate.
  • After a strong market decade he raised his withdrawal and emphasizes retirement plans must be actively monitored and adjusted.
ADVICE

Use A Rising Equity Glide Path If Stocks Are Moderate

  • Consider a rising equity glide path (start with lower stock % then increase) if you begin retirement with moderate equity exposure.
  • Bengen's tests showed a rising glide path outperformed a fixed allocation at 55% stocks but mattered less at 65% stocks.
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