Part 2/6:
The 4% Rule originated in the mid-1990s, stemming from research conducted by financial planner Bill Bengen. This rule posits that retirees can safely withdraw 4% of their initial nest egg value each year, adjusting for inflation, ensuring their savings last for 30 years. While this might have seemed a sound strategy in the past, modern financial landscapes present challenges that warrant a cautious application of this guideline.