In this episode of Retire with Style, Wade Pfau and Alex Murguia talk with William Bengen, pioneer of the 4% rule in retirement planning. They explore the rule’s evolution, how inflation and market valuations shape sustainable withdrawals, and Bengen’s current recommendations. The discussion highlights the role of asset allocation, the importance of withdrawal strategies, and why ongoing monitoring is essential for a secure retirement.
Takeaways
<ul>
<li>William Bengen modernized retirement income planning with the 4% rule.</li>
<li>Inflation is a critical factor in determining sustainable withdrawal rates.</li>
<li>Market volatility can significantly impact retirement portfolios.</li>
<li>A comprehensive withdrawal plan should consider multiple factors.</li>
<li>Current recommendations suggest a withdrawal rate of around 5.5%.</li>
<li>Asset allocation plays a vital role in retirement planning.</li>
<li>Investors should consider a rising equity glide path strategy.</li>
<li>Regular monitoring and adjustments to retirement plans are essential.</li>
<li>High inflation can permanently elevate withdrawal amounts.</li>
<li>The 4% rule is not a one-size-fits-all solution.</li>
</ul>
 
Chapters
00:00 Introduction to Retirement Income Planning
01:14 The Birth of the 4% Rule
03:03 Understanding Withdrawal Rates
09:15 The Impact of Inflation on Withdrawals
12:45 Market Valuation and Its Effects
18:07 Current Withdrawal Rate Recommendations
21:10 Asset Allocation Strategies
24:04 Free Lunches in Investment Strategies
27:34 Key Takeaways from A Richer Retirement
31:15 Future Research Directions
 
Links
Join Us for RWS Live! with Bill Bengen!
We’re going live on Thursday, September 11th at 1:00 PM ET on the Retire With Style YouTube channel! You’ll have the chance to ask Bill Bengen—creator of the 4% rule—your retirement questions live in the chat.
Search “Retire With Style” on YouTube, or click this link to join us directly: <a href='https://retirewithstyle.com/rws-youtube-live'>https://retirewithstyle.com/rws-youtube-live</a>
Don’t forget to subscribe so you get notified when we go live!
🎉 We're About to Hit 200 Episodes! 🎉
Can you believe it? Retire With Style is closing in on our 200th episode, and we want you to be part of the celebration!
Whether you’ve been with Wade and Alex since episode one or just joined the party, this milestone wouldn’t be possible without listeners like you. Help us mark the occasion by sending in a short video or voice note to share your favorite moment, biggest takeaway, or just some kind words for the guys.
We’re also running a special giveaway to thank our community — and yes, there will be prizes.
👉 Be a part of Episode 200 by visiting <a href='https://retirewithstyle.com/join-episode-200'>https://retirewithstyle.com/join-episode-200</a> to join the celebration!
Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit <a href='https://www.retirewithstyle.com/'>RetireWithStyle.com</a> to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: <a href='https://www.wadepfau.com/books/'>https://www.wadepfau.com/books/</a>
This episode is sponsored by McLean Asset Management. Visit <a href='https://www.mcleanam.com/retirement-income-planning-llm/'>https://www.mcleanam.com/retirement-income-planning-llm/</a> to download McLean’s free eBook, “Retirement Income Planning”

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Episode 195: The 4% Rule and Beyond: Retirement Strategies with Bill Bengen

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