For decades, conventional wisdom has argued that financial planner William Bengen’s famous 4% rule, which he introduced in 1994, could safely carry retirees through their golden years.
The strategy, which begins with withdrawing 4% of your retirement savings in Year One then increasing that amount proportionate to inflation in subsequent years, should theoretically result in retirees having financial stability for 30 years.
Over time, however, critics have suggested that the 4% figure should be closer to 5%. But the issue with the strategy is not in its math. Rather, the problems are twofold:
- American life…
