now retired, is invested in 20% equities, 10% bonds and 70% cash.
The foundation of Mr. Bengen’s 4% rule is to maintain in retirement at least a 50% allocation to equities, and that a total return strategy (using only investments) to fund retirement income is perfectly safe. That Mr. Bengen admits to being so uncomfortable with the markets in retirement that he is violating his own rule is remarkable.
Financial advisers often tell clients to stay invested. But retirement brings new risks, worries and emotions that can’t be fully appreciated while working and taking home a paycheck.
Not So Easy to Follow the 4% Rule in Retirement
Photo:
Michael Nagle/Bloomberg News
“It’s Time to Rethink 4% Retirement Rule” (Personal Journal, April 20) is fascinating, especially the revelation that
Bill Bengen,
now retired, is invested in 20% equities, 10% bonds and 70% cash.
The foundation of Mr. Bengen’s 4% rule is to maintain in retirement at least a 50% allocation to equities, and that a total return strategy (using only investments) to fund retirement income is perfectly safe. That Mr. Bengen admits to being so uncomfortable with the markets in retirement that he is violating his own rule is remarkable.
Financial advisers often tell clients to stay invested. But retirement brings new risks, worries and emotions that can’t be fully appreciated while working and taking home a paycheck.
David Lau
Louisville, Ky.
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Appeared in the April 27, 2022, print edition as ‘Not So Easy to Withdraw Only 4% a Year as a Retiree.’
Source: https://www.wsj.com/articles/retirement-planning-four-percent-rule-bengen-investment-11650923000?mod=itp_wsj&yptr=yahoo