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"Bengen, creator of the ubiquitous “4% rule” for retirement withdrawals, has raised his benchmark rate to 4.7%. Those retiring today could start even higher, he says, at around 5.25%."
"Your actual “safe” withdrawal rate depends on many factors, of course, including market valuations and performance. In Bengen’s view, safe means that you can maintain a certain withdrawal rate over a 30-year period, no matter how the market performs."
"Bengen tested his withdrawal rate against all market conditions from 1926 to the present. It would have worked during the Great Depression and an even worse scenario—the stagflation of the 1970s."
"Bengen’s methodology assumes an allocation of 55% stocks, 40% bonds, and 5% cash."
