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How the 4 Percent Rule Changed Retirement
In the premiere episode of The Financial Freedom Podcast, Lucas and Luna explore the origin of the 4 percent rule—the famous retirement withdrawal guideline—through the story of Bill Bengen, the financial advisor who invented it in 1994. They discuss Bengen's initial research using historical market data from 1926, how the rule evolved, and what critiques have emerged in today's low-yield environment. Lucas shares a concrete example: a retiree in 1966 who followed the rule would have seen her portfolio survive a full 30 years, while one using a 5 percent withdrawal rate would have…
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