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Not So Easy to Follow the 4% Rule in Retirement

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April 26, 2022 12:19 pm ET

Photo: Michael Nagle/Bloomberg News

It’s Time to Rethink 4% Retirement Rule” (Personal Journal, April 20) is fascinating, especially the revelation that Bill Bengen, now retired, is invested in 20% equities, 10% bonds and 70% cash.

The foundation of Mr. Bengen’s 4% rule is to maintain in retirement at least a 50% allocation to equities, and that a total return strategy (using only investments) to fund retirement income is perfectly safe. That Mr. Bengen admits to being so uncomfortable with the markets in retirement that he is violating his own rule is remarkable.

Financial advisers often tell clients to stay invested. But retirement brings new risks, worries and emotions that can’t be fully appreciated while working and taking home a paycheck.

David Lau

Louisville, Ky.

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