4% Rule vs 8% Rule: Bill Bengen Responds to Dave Ramsey's Withdrawal Rule
📘 Bill Bengen’s Book: A Richer Retirement: 👉 https://amzn.to/4aXQhW3 (affiliate) Dave Ramsey has suggested that an 8% withdrawal rate can work in retirement. But what does the creator of the 4% rule think about that? In this conversation, Bill Bengen, the father of the 4% rule, reacts to Dave Ramsey’s 8% withdrawal claim and explains why it may be far too optimistic in today’s environment. Bill breaks down the biggest risks retirees face, including sequence of returns, inflation, and stock market valuations, and why those factors matter more than long-term average returns. We also explore what a safe withdrawal rate really means, why being too conservative can prevent you from enjoying your money, and how portfolio composition affects sustainable retirement income. Bill also shares the withdrawal rate he personally used when he retired and how it has changed over time. If you are planning for retirement and want to balance financial security with actually enjoying your money, this conversation is a must-watch. ⏱️ Chapters 00:00 Dave Ramsey’s 8%withdrawal rate 00:28 Why average returns can be misleading 01:05 The danger of early bear markets in retirement 01:32 Inflation and stock market valuation explained 02:06 Why 8% is too risky today 02:42 Safe versus optimistic withdrawal rates 03:02 Stocks versus bonds in retirement portfolios 03:58 Why asset allocation matters less than you think 04:32 Is a 3% withdrawal rate too conservative 05:18 The downside of not spending your money 06:03 Bill Bengen’s personal withdrawal rate 06:45 Why withdrawal rates increase over time 07:48 Historical cases when higher rates worked 08:35 Helping couples ease off aggressive saving 09:20 Why younger investors should favor stocks 10:05 Are target date funds too conservative early on _____ MARRIAGE KIDS AND MONEY: This award-winning YouTube channel is dedicated to helping families build wealth and thrive. Each week, Andy Hill shares actionable advice and tips for family financial independence. Also, he interviews personal finance experts, families who've achieved financial independence and work optional parents to inspire you to do the same. BIO - ANDY HILL: Andy Hill, AFC® is the award-winning family finance coach behind Marriage Kids and Money - a platform dedicated to helping young families build wealth and happiness. Andy's advice and personal finance experience have been featured in major media outlets like CNBC, Forbes, MarketWatch, Kiplinger’s Personal Finance and NBC News. With millions of downloads and views, Andy’s message of family financial empowerment has resonated with listeners, readers and viewers across the world. When he's not "talking money", Andy enjoys being a Soccer Dad, singing karaoke with his wife and relaxing in his hammock. ✅ CONNECT WITH US Pre-Order My Book "Own Your Time": https://marriagekidsandmoney.com/book Follow On Instagram: / marriagekidsandmoney Read our Blog: https://marriagekidsandmoney.com Listen to our Podcast: https://marriagekidsandmoney.com/podc... Subscribe to my YouTube channel today to strengthen your family tree and live financially free! HOW WE MAKE MONEY & DISCLAIMER This show may contain affiliate links or links from our advertisers where we earn a commission, direct payment or products. Opinions are the creators alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser. Information shared on this channel is for entertainment purposes only and should not be considered as professional advice. Marriage Kids and Money (www.marriagekidsandmoney.com) is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. CREDITS Research & Writing: Andy Hill, AFC® Video Editing: Hinz Video Thumbnail: Ardi, The Thumbnail Wiz Channel Management: Kayli Groves
