Retiring Early to Lie Flat? Keep an Eye On Inflation

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The current environment is “off the charts” and it’s impossible to tell what the safe withdrawal rate would be from here, William Bengen, the retired financial adviser who developed the 4% rule (which he subsequently revised up to 4.7% after adding other asset classes), said on Morningstar Inc.’s The Long View podcast last month. For Americans deciding this is a good time to leave the workforce, Bengen had bad news. “Early retirement is particularly dangerous,” he said. Spending too much too soon is the danger, with the first five to seven years setting the tone for the whole retirement period.

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