Part 2/9:
The 4% rule was coined by financial planner Bill Bengen in 1994, based on historical market data. According to this rule, retirees could withdraw 4% of their retirement savings every year, adjusted for inflation, and have a high probability of not running out of money over a 30-year retirement period. In fact, Bengen's analysis claimed that 23% of retirees following this rule would die with double their initial balance.