45 minute podcast
morningstar.com - The long view

The author and creator of ‘the 4% rule’ discusses the pros and cons of various withdrawal strategies and key risk factors facing retirees today.

Episode Highlights
Why the 4% Rule Needed a Rethink
Inflation as the Biggest Retirement Risk
Different Approaches to Finding Your Withdrawal Rate
Factoring in Longevity, Taxes, and Legacy
Managing Your Asset Allocations, and Outsourcing the Rebalancing Process
The 4% Rule Is Not for Everyone
45 minutespodcast
teaser:
Bengen has added new classes of investments.
small cap stocks boosted withdrawal from 4.0% rule to 4.5%
Then 4 new asset classes -micro cap stocks, mid-cap stocks, international stocks & Treasury bills that allows for 4.7% withdrawal.

Bengen states key factors in setting your retirement rate are stock market valuation[high now] & estimate of inflation for the next 10 years[his assumption is moderate]. His research suggests currently if you don’t wish to leave any inheritance spending down to zero the withdrawal rate is 5.8% from tax advantaged accounts.

He claims the MIT endowment fund uses a 5.1% withdrawal rate.

“assumption” is the problem. Just too many variables out of one’s control. One’s longevity. Political events such as closure of the Strait of Hormuz that could have at least a potential economic effect.

A withdrawal rate is similar to investing for retirement. One places their bets and hopes for a good result.